Ep485 Alternative Investment Strategies for Recession Resilient Returns with Patrick Grimes.

The Conscious Investor

Send us a text

This episode is all about real estate investing and the difference between syndications and funds.

Key points:

• Syndication: A pool of investors coming together to buy a specific real estate property. Investors are actively involved in decision making.
• Fund: A legal structure that allows investors to participate in real estate investments passively. There are different types of funds, including Reg D funds (common ones are Reg D 506 B and Reg D A).
• Blind pool fund: A fund where investors don't know the specific assets that will be purchased. Investors are giving the fund manager the latitude to invest based on their investment thesis.
• Feeder fund: A special purpose vehicle set up to invest in another fund.
• Fund of funds: A fund that invests in other funds

Patrick mentions the benefits of blind pool funds for investors:

• Diversification: Investors can gain exposure to a variety of assets through a single fund.
• Faster investment: Fund managers can move quickly to buy assets without needing approval from investors for each purchase.
• Potential for higher returns: Because the fund manager has more flexibility, there's a chance of getting better deals.

Chapters

1. Real Estate Funds Investment Insights (00:00:00)

2. Exploring Investing Through Syndication and Funds (00:05:30)

3. Vetting Fund Managers in Real Estate (00:19:10)

4. Real Estate Acquisitions Fund Strategy (00:27:46)

5. Recessionary Income Fund Investment Strategy (00:36:15)

6. Take Steps Towards Personal Growth (00:45:26)