Development joint venture - investor
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[{"id": "ff6ixvh", "text": "Typically the group bringing the equity is the most valuable to a deal. You get a lot of looks at a wide variety of deals as everyone needs equity to get their projects done. You mostly get your pick of the litter on projects.", "replies": [{"id": "ffa761o", "text": "More generalized exposure you think vs. working at the operating member in the agreement? Seems less exciting but also financially more rewarding on the capital investor side", "replies": [], "depth": 2}], "depth": 1}, {"id": "ff6lope", "text": "Real estate investment trusts?", "replies": [], "depth": 1}, {"id": "ff6m070", "text": "Sounds fun to me.  Do I get a piece of the deals I put together?", "replies": [{"id": "ff6mc4b", "text": "Yes of course. How much would be determined upfront in the jv agreement", "replies": [{"id": "ff6motl", "text": "As a broker I put together deals for a fee.  Plus side, deal doesn\u2019t have to make money ever for me to get paid.  Down side, I know I put people into some pretty good positions and I add a ton of value myself in identifying opportunities and don\u2019t get paid for it.  I\u2019m heading towards something like what you are considering, I\u2019m planning to start sourcing the equity too though and syndicating my own deals.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ff6tdql", "text": "Very valuable skills to be had doing this! Highly recommend. Maybe you already know this, but this is basically the Grant Cardone business model...nothing wrong with that, just sayin'.", "replies": [], "depth": 1}, {"id": "ff7o0u0", "text": "Typically, the developer would be the gp and investor be the lp in these cases. Hurdles, waterfalls, and you all make money some long as no one fucks up and doesn\u2019t understand the market.", "replies": [], "depth": 1}, {"id": "ffcr4rb", "text": "So are you saying that they provide the full equity piece, the GP piece, or the LP piece?", "replies": [{"id": "ffcrrhj", "text": "Capital member in a JV agreement. Brings majority of the capital and oversees operating members activity", "replies": [{"id": "ffcsffd", "text": "Got it, so the LP. That's a great spot to be in. You'll see a lot of deal flow given that your boots on the ground involvement in each deal is going to be less than whoever you bring on as the GP/operating partner. Seeing lots of deals at 30,000 ft. You'll get excellent experience underwriting/analyzing deals, getting to know the capital markets, getting to know lenders and operators/developers, etc.    \n\nThe only conceivable downside is that you won't necessarily see as much of the nitty gritty of operating and developing properties and finding development opportunities. You'll have most opportunities brought to you all and then analyze them once they're already fully formed. I know a ton of people that started with shops like the one you're talking about and then either loved it and stayed or leveraged their deal expertise into a development shop where they could learn more about the nitty gritty stuff.     \n\nFrom a comp standpoint, it's probably a great spot. Deal returns will have a higher ceiling and lower floor than a GP, but you're assuming way less risk.       \n\nI work in a similar role for an operator/developer/GP.", "replies": [{"id": "ffcszfe", "text": "What market/region are you in? I\u2019m excited but there\u2019s so much to learn in CRE. Already got to sit in with the big wigs  during their meetings so exposure level is definitely already greater than for example being an analyst at a big company with many silos. Pros/cons to each side of the table, I agree. Thanks.", "replies": [{"id": "ffctcym", "text": "I\u2019m in the Southeastern US, we work mostly with office and a tiny bit of industrial and retail. Feel free to DM any time with any specific questions or anything that come up!", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ffcsxxv", "text": "Accident post", "replies": [], "depth": 1}]