#43: Different Types of Real Estate Funds feat. Nathan Clayberg

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#43 Different Types of Real Estate Funds feat. Nathan Clayberg

Nathan Clayberg is the Assistant Vice President at MLG Capital. As a bit of background, MLG Capital is a private real estate firm that has been in the industry for over 30 years. Across all investments made in that time, they’ve averaged a 2.3x multiple on an average hold period of approximately 6.5 years. Fund IV, their current offering, is a $200M Fund that seeks diversification across a basket of 25-30 smart real estate deals, targeting net returns to investors of 12-16%.

Now, let’s look at four things that we discussed in this episode:

  • Pros and cons in investment funds
  • What is a value add strategy
  • Two fund investment options
  • What is UBTI 

Here’s a breakdown of how this episode unfolds…

[13:02]

What we did is we inserted a private subsidiary REIT entity between the investments and the investors and really this REIT just flows cash through it but it reclassifies the income that you are realizing from passive rental income to dividend income.

[22:03]

Long term, if we can get into value product at a good price and just spruce it up a little bit and make it feel like the newer, nicer product but at a price point that's more reasonable for most renters, we think it's a really attractive investment overall

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