Economic uncertainty is a concern. It has been more than ten years of continuous economic growth, and it will not come to a surprise that a recession could come soon.
Protecting and preserving wealth has been, and always will be our primary goal. Investing in Private Real Estate with the right sponsors in specific sectors is a strategy that the most sophisticated investors use, such as pension funds who manage billions of investment dollars. Until recently, private equity real estate investments were limited by law to high-net-worth investors who met specific accreditation (wealth and income) requirements.
The real estate investment world is full of great looking deals with bad operators. Did you ever hear the saying that
“Good Operators And Sponsors Turn Bad Deals Into Good Ones, and Bad Operators And Sponsors Turn Good Deals Into Bad Ones”
Even the best real estate can’t overcome the damage caused by a lousy operator! I cannot emphasize enough for investors to do their due diligence on the sponsor, before diving deeper into the numbers of the underlying deal. If I had a choice between evaluating only the manager or the real estate before making an investment decision, I would choose the manager every time!
One of our chosen sponsors to invest with is Daniel Edrei, Managing Partner of TCS Anika Homes. He has 25 years of experience as a lender, developer, owner, and investor. Over his career, he has been responsible for loan origination, underwriting, asset management, and the marketing of a multitude of financial products, including commercial real estate conventional, bridge and mezzanine loans, preferred equity loans, equity JV’s, accounts receivable financing, and ground sale/leasebacks. He has been featured and quoted as an expert in a multitude of commercial real estate publications and had numerous speaking engagements.
Daniel is skilled at designing ‘win-win’ situations for buyers, sellers, investors, and borrowers. He is an out-of-the-box creative thinker. His strengths include structuring, analytics, communication, and problem-solving skills. He is an alumnus of New York University, with continued education in real estate, finance, and banking.