FORTUNE REAL ESTATE INVESTMENTS, INC
MIRAMAR, FL 33025, US
Acquisition and management of value added opportunities in the retail sector of the commercial real estate arena. We are seeking seasoned investors to provide equity funds for acquisition of commercial real estate for a preferred return and upside.
Fortune Real Estate would be the syndicator. Syndicator can bring expertise that investors can leverage. In most private syndications, the sponsor provides a relatively small portion of the capital for the investment, but offers the investment opportunity and the time and expertise to make the investment successful. The investors provide most of the money, but also get to take a relatively “hands-off” approach to the project.
Over time, there have emerged some general patterns for real estate equity deal structures. Although each transaction is different, typical structures might look like the following:
Provide the vast majority of the capital (usually 80-95%)
Receive a “preferred return” on their investment (often 5-10%)
Receive a share of the remaining cash flow and profits (typically 50-80%)
Receive the bulk of the tax benefits, such as depreciation and interest deductions
Provides a small portion of the capital (usually 5-20%)
Receives the same preferred return as investors on its own invested capital
Receives a “promote” share of the remaining cash flow and profits
May receive fees relating to property acquisition, loan financing and management
Receives some share of the tax benefits
Operators will generally receive some form of management fee, and oftentimes receive fees for arranging loan financings and for each of the acquisition and sale of the property.
Syndicated real estate investment opportunities can be structured in many different ways; the above summary merely reflects some of the more common methods that investors and operators use to work together. It is important in any case that real estate investments be made under a structure that helps to keep an operator’s interests and investors’ interests aligned.
Products / Services
Acquisition and management of commercial real estate.
President Financial Analyst
Real Estate Broker-Florida
Unity Real Estate
11820 Miramar Parkway
Miramar, FL 33025