Our guest today is Lisa Hylton a syndicator, real estate investor, and podcaster. In this episode, we dig deep into real estate funds. We discuss how these funds work, what are the pros and cons of investing in them, and when you should start a fund yourself.
Learn everything about real estate funds and tune into this episode!
Learn more about Lisa and her journey at reiclarity.com!
“What's key with the blind fund is that you need to be comfortable with the investment strategy and trust in the operator.”
Lisa started her career as a controller for private equity real estate funds. Recently, she started her own company as a real estate funds syndicator.
A fund is an entity, typically an LLC that has been created to invest in one or more real estate assets. The GP team manages the money.
Lisa explains that there are 2 types of real estate funds:
“Investing in funds really works well for people who don't have a lot of time but have money and want to invest in real estate in a very diverse way.”
Lisa shares the multiple benefits of real estate funds for passive investors:
According to Lisa, the only downside of investing in funds is the lack of control.
There are 2 different ways of paying out:
If you’re an operator who’s thinking about starting a fund, Lisa recommends making sure that you have a substantial deal flow. Also, if you’re focused on raising capital as part of a GP team, starting a fund can be beneficial because you can have your own entity.
“Being in the right place starts with you getting to know who you are.”
At the end of the episode, Lisa gives advice for people who want to take the leap from their W2 job into entrepreneurship.
Mentioned in the show:
Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity.
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Until the next time, We truly appreciate you listening.
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