One of the biggest hurdles to private equity real estate investing is figuring out what industry, or type of investment, is best to part your capital in. Terms like core, core plus, value-added, opportunistic assets, and others can further muddle the conversation. Everyone has the “next big thing” when pitching lucrative new resort locations that end up being a parcel of land that’s a designated Superfund.
This is complicated by changing economic conditions, wherein debt is becoming more expensive to carry, and a red-hot real estate market cools rapidly – meaning that long-horizon projects leveraged to the gills are less attractive.
Where can a discerning and conservative accredited investor access safe, reliable, and consistent cash flows in private equity real estate?
Enter: First National Realty Partners.
Accredited Investors Only
Before we go any further, we would be remiss not to mention that investing opportunities with First National Realty Partners are restricted to accredited investors. This is a unique categorization of private investors that must meet some of the following criteria:
Financial Criteria:
- Net worth over $1 million, excluding primary residence (individually or with spouse or partner).
- Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year.
Professional Criteria:
1. Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82).
2. Directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company).
3. Any “family client” of a “family office” that qualifies as an accredited investor.
4. For investments in a private fund, “knowledgeable employees” of the fund.
If these criteria don’t apply to you, sorry – but there are many other ways an average, non-accredited investor can access real estate investing.
Anchored in Reality
First National Realty Partners offers a unique proposition in the real estate space – purchasing lots, buildings, and properties (think outdoor malls and similar) below their replacement cost and anchoring the property with an established, nationally-known firm.
Make sense?
Here’s a real-life example: First National Realty recently found a cheap property with a ton of opportunity in their unique and high-level deal flow. They snatched it up for their investors at a deep discount and re-negotiated an additional five-year lease with the existing tenant (CVS). Now, no matter the economy, everyone will need access to a drug store like CVS. This made the property a guaranteed goldmine, and investors enjoyed quarterly cashflow, and First Realty was able to refinance the property before the lease renewed and pay back the capital investment – allowing the limited partners to reinvest in new opportunities while continuing to enjoy both cash flow and capital gains appreciation from the first deal.
Record Returns
That’s a great story, but what about the rest of First National Realty’s investments? Was that just a stroke of luck or an outlier?
Not at all.
Here are some quick stats that demonstrate how viable and reliable First National Realty truly is:
- The firm holds over $900M in commercial assets.
- Averages 12% – 18% annual return. This is huge in any market but especially noteworthy now as so many once-strong investing vehicles nosedive.
- Each investment targets a 12% – 18%+ internal rate of return, meaning that they set their goals high on behalf of their investors.
- Targeted 8% annual cash distribution so that you can enjoy recurring, reliable income even as the capital appreciation compounds.
Offerings
First National Realty offers several investing options:
Limited Partnership
As an LP, you get access to exclusive, rare, and lucrative deals through their unique deal flow. Pricing is based on a scale dependent upon the deal you’re investing in and is not standard across the board. This means, generally, that you have the flexibility to do due diligence and invest in deals you’re most comfortable with.
Opportunity Fund
This is where First National Realty sets itself apart from other private equity real estate firms. For a minimum $50,000 outlay, you get access to fractional shares across the entirety of First National Realty’s $900m+ portfolio. This means that you’re automatically diversified, proving a greater risk adjustment for your returns and further ensuring continual cash flow and capital gains appreciation. This opportunity is truly unique, and the fund’s name is apt.
The Bottom Line
We really can’t emphasize how unique the fractional, diversified nature of First National Realty’s Opportunity Fund is. Not only that, but the team at First National Realty are all-stars at property management, negotiation, and tenant maintenance.
Since the investment properties are anchored in grocery-based, well-known companies like CVS, Kroger’s, Whole Foods, and others, you have safer capital maintenance as consumers need to go to grocery stores irrespective of economic conditions.
All of these factors combine to give you, the accredited investor, the best experience for the least amount of time.
Not only that, but First National Realty’s website is top-notch and provides an easy way to research and do due diligence before pulling the trigger on either an individual deal or investment in the Opportunity Fund.
Ready to go? Here are more details about your opportunities with First National Realty Partners.
