Private equity sounds like a mechanism that extracts the most amount of value from a business, and transfers that wealth to the few general partners. Everyone loses - the business, the employees, the local consumers, the tax payers.... except for the general partners!

The private equity firm does not "promise" a return to its limited partners. It is a potential upside ROI, and includes risks of failure to achieve the return. The use of the word "promise" is only valid in a loan, not an equity investment.

I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 175K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities..

thanks started a role on the external reporting end of a REPE firm, this is helpful.

I work in a company that does basically this but with a specific type of business as opposed to real estate.

Hey, Justin --- Great content. But I just have two questions, though: With regards to the Acquisition Fees (#1) and Disposition Fees (#4), does the Fund Manager require a Real Estate license to benefit from these fees? Or are they exempt from Real Estate licensing requirements since they are principals of the fund that is making the R/E acquisition and disposition? And with regards to Asset Management Fees (#2) and Promoted Interest (#5), does the Fund Manager require a Securities license (Series 65) to benefit from these fees? Or are they exempt from Securities licensing requirements? Thanks.

it would be helpful if you provided examples with arbitrary numbers

Hey can this still be done on a MUCH smaller scale? Like if I wanted to pool some money together from some friends and purchase a property 100k-500k? Would it still be done the same buying residential housing rather than commercial?

Exactly the contact I’ve been searching for

thanks so much for the simple explanation!! love your videos

Really good information and very clear and concise. Thank you!

Great video. As the GP, would it be adversely deemed fair if you included all these fees in your fund or should you try to mitigate your fees as much as possible? For example, would it be frowned upon to charge investors a disposition fee if you still earn a carried interest in the deal as the fund? What combination of these fee structures are most common in the space?

Very Nice video keep posting . Acknowledgement from India.

Great channel and info. Thanks

@BreakintoCRE great video. Can you touch on how much capital the GP will be expected to commit as a percentage of the deal?

Excellent! Thank you

Hi May I check where does all the fund admin cost lies? Is it in Management fees? Or it should be separately deducted from the fund Cashflow?

How different is disposition fees different from a brokerage? Didn't understand what construction management activities that GPs carry out?

Really nice video. Since we have some clients from gulf , Can you please make a video on Murabaha role in Real Asset .

REPE sounds a lot like being a broker

Awesome Video, can you tell me who pays the Acquisition fees? Is it paid by the limited partners? In addition to the amount invested? or is it baked in in advance? Also, you say “if” you can get the debt, can you tell me more about what it takes to be able to secure good debt? Does a general partner need to have a really high net worth?

Hi are these fees charged annually. for e.g. 500m fund 1% management for every year? Or is it just 1% once capital is raised and thats it for the life of the fund?

I like your videos but am wondering why your business does not come up when I search the better business bureau website nieither Breaking Into CRE nor JBK Enterprises, LLC shows up.

Are PE firms almost always the General Partner?

I understand acquisition fees for core deals but do you still charge full acquisition fees on a build from scratch where the development fee is very high?

where is the link for crash courses

Hi Justin i need more info

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

Hey, interested in the free crush course

We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.

This was great, I have been researching "group funded real estate" for a while now, and I think this has helped. Have you ever come across - Ponasson Estate Earthman - (search on google ) ? Ive heard some decent things about it and my m8 got cool success with it.