Smartland
Smartland: “Smartland® is an ecosystem-based private equity firm, focused on multifamily real estate investment opportunities in Northeast Ohio & South Florida with potential expansion into the broader Midwest region. We capitalize on other's mediocracy and seek to add value to not only our properties but the surrounding community as well.”
What is the difference between General Partners and Limited Partners?
“Real estate investments are comprised of two types of parties, General partners (GP) and Limited partners (LP). General Partners are typically asset managers. They are responsible for managing the property themselves or via a third party. Limited partners are passive investors who do not make decisions about the day-to-day operations of the property or a property’s management.”
View in the company profileWhat is a preferred return?
“Preferred return is a designated amount of distributable cash to be returned to the investor before any return splits. For example, if a deal has a preferred return of 8%, then the first 8% returned on an investment (distributions from cash flow or capital events such as refinance proceeds or disposition) will go entirely to the Limited Partners.”
View in the company profileWhat is the internal rate of return (IRR)?
“The internal rate of return (IRR) is a measure of an investment’s rate of return. The term internal refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or various other financial risks.”
View in the company profileCan investors cash out of an investment at any time?
“No. By their nature, real estate investments have a longer-term time horizon than that of stocks or bonds.”
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