Alareia Master Class

129: Hedging for Hedge Funds

Informações:

Sinopsis

Matt Bell, of Charleston, South Carolina, joins Brian on the show today to talk about how hedge funds are becoming popular in real estate investing. He talks about how hedge funds work, how they've developed, and how they evolve, as well as how people working with hedge funds can work with real estate investors so both parties benefit.   Key Takeaways:   [1:20] There are different niches regarding hedge funds, with real estate becoming one of the more recent avenues. Prior to 2012, institutional money was not in real estate. Once they figured out that they could rate real estate, it became a popular channel for capital. [4:10] "Securities" have different ratings that have to do with how much they are valued at, as well as insurance. The highest rating is what they view as the safest investment. In real estate, an A asset might be new construction or something recently renovated. This goes all the way down to houses that need a lot of renovation; there is a spectrum of ratings. [6:00] Where risk and