Raising Institutional, Family Office, and Retail Capital with Fred Pierce

Passive Wealth Strategy Show - Real Estate for Busy Pros

How does a young intern with a passion for real estate go on to raise over 1.2 billion for student housing projects?

Dive into the world of Fred Pierce, an experienced and successful investor who has raised over 1.2 billion in investments for his student housing projects across 39 states. He'll dive into how he jumped the queue and attracted capital from institutional investors, family offices, and retail investors. We'll hear about the different tiers of investor capital, from friends-and-family capital to country club capital to family office and institutional investors. He'll also walk us through his capital life cycle in commercial real estate and explain the advantages and disadvantages of each type of investor.

Tune in to gain powerful insights from Fred Pierce!

[00:00 - 06:22] Becoming a Billion-Dollar Student Housing Investor

• Fred Pierce is an experienced real estate investor, having done over 1.2 billion in student housing projects
• His journey started when he was 21 and interned at the Goodkin Group, a market research firm
• He took his platform national in 2006 and, within 90 days, had 1.2 billion of development rights at two major universities

[06:23 - 12:49] How to Leapfrog the First Couple Rungs in Commercial Real Estate

• The capital life cycle in commercial real estate consists of four main food groups and niche sectors
• Early in their career, people usually start with friends and family capital
• Country club capital route is the next tier, which involves friends of your friends and family
• The third tier is the family office, managed by millionaires or billionaires
• The fourth tier is institutional capital from investment advisors with multi-billion dollar commingled funds

[12:50 - 25:59] Exploring the Benefits for Retail and Family Office Investors

• Retail investors have been gaining access to student housing investments
• Student housing is a defensive and recession-resistant asset class
• Starting in 2016, institutional investors began to allocate capital into niche sectors of commercial real estate such as student housing, senior housing, self-storage and data centers
• Transaction volume has slowed significantly, and valuations have decreased due to the higher cost of debt

[26:00 - 32:20] Closing Segment

• Best investment: in Fred's own company
• Worst investment: Fred's first and second home purchase due to bad timing.
• The most important lesson learned: keep it simple and scalable

Quote:

"Keep it simple and scalable if you want to accept exponentially growing your business and your opportunities." - Fred Pierce

Connect with Fred!

Website: https://pepstudent.com

Number: 619-297-00400

Apply to Invest with Taylor at www.investwithtaylor.com

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