Tyler Tysdal – What is Private Equity Real Estate?
Tyler Tysdal is a man who knows the ins and outs of real estate better than anyone who I have ever met. It must have always been written in the stars for him in truth, his father was a real estate broker and his father before that, Tyler was only ever going to go in one direction for his career! I was out having lunch with Tyler who now works for a private equity real estate firm, and I wanted to dig a little deeper into what it actually is that he does, and what kind of service his company can provide. If you are interested in real estate then take a look into the world of private equity real estate.
What is Private Equity Real Estate?
Private equity real estate is an investment vehicle which can be used to buy up large scale properties, commercial properties and collections of residential properties. These work exactly in the same way that a private equity group works, in pooling together the funds of its investors. Private equity in real estate came about in the late 80s and early 90s after the real estate market crashed, and many groups of wealthy people and families realized the spending power which they would be able to have and as a result pooled their resources and began to snap up properties.
Investment Manager
Within his firm Tyler Tysdal is an investment manager, one of the most important roles within the team. The investment manager, first and foremost, must maintain strong and healthy relationships with current investors and also must seek out new investment. In order for a private equity real estate firm to keep on working it relies heavily on constant revenue and investment, something which Tyler is responsible for. The investment manager is also consulted on all forms of investment and after the data has been crunched the investment manager will form a key part of the decision making process.
How Investors Earn?
Investment into a private equity real estate firm will usually require a minimum investment of $250,000 or more, which is why you will often find investment coming from the wealthiest in society. Once investment is made there is generally a cooling off period of between 6 and 10 years before investors will see any returns on their initial outlay. What these investors will be able to see after the cooling off period however are returns which can often be anywhere between 8-10% annually. This is why investors are happy to wait for their returns, because they can be very high indeed.
The benefits of using a private equity real estate company are not only that the investor is able to make some money as a result, but also that investors are able to trade in real estate on a huge scale which they may not be able to do without the equity group. Finally investors are paying for the expertise which people like Tyler have got, and that is one of the greatest benefits which they can count on.