Tyler Tysdal understands private equity and real estate investing markets better than anyone in the industry today. Tysdal has worked in private equity and real estate for most of his life and currently spends a lot of his time educating a new generation of entrepreneurs.
Tysdal explains that private equity real estate is a financial investment used to purchase big scale properties, business residential or commercial properties. Real estate private equity works precisely in the very same way that a private equity group works, pooling together the funds of its investors to gain greater profits for the whole. An investment manager has an essential role within the group. The investment manager needs to maintain strong and healthy relationships with their current investors while looking for new real estate to invest in.
Most private equity real estate firms require a minimum investment of $250,000 or millions more, which is why you will often find these types of financial investments originating from the most affluent in society. Once investment is made there is generally a period of 6 to 10 years prior to the investors seeing a return on their money. Returns can often be anywhere between 8-10% yearly.
Tysdal explains that there are benefits of utilizing a private equity real estate investing company. It gives investors a unique opportunity to make some money as a result of working on a substantially larger scale with more money in the pool.
Tyler Tysdal is managing director and co-founder of Freedom Factory, a business brokerage in Denver, Colorado.