As the real estate market evolves, more and more operators and investors are looking for new strategies to diversify their portfolios.
One of the best ways I’ve found to leverage the track record, relationships, geographic location, and deal flow of someone else’s firm is through the concept of the “fund of funds” model – sometimes referred to as the “SPV” (Special Purpose Vehicle) model.
We are joined by Ariel Diaz, fellow RaiseMaster and founder of Trajan Real Estate. Ariel is here to discuss a recent paradigm shift he had on this topic, which allowed him to significantly increase his deal flow by utilizing this structure.
Today, we are going to discuss…
- Why our guest felt like he was “stuck” in a low cap rate market, and how the fund of funds model helped solve that problem
- How he was able to leverage his fund of fund’s investment amount to get favorable terms for his entity
- How to overcome challenges around your investors potentially circumventing you as a fund of funds manager
- How the fund of funds structure allows you to get your foot in the door with just about any operator (regardless of how experienced they are)
This episode is extremely relevant for both savvy passive investors, as well as well-established operators. The power of this vehicle is only just beginning to be understood in the market today.
You’ll see why during this interview!
Resources mentioned in this podcast:
1. His website
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