Preferred equity is not something you tackle when starting out as a new syndicator. It comes with a large amount of added paperwork, legalities, due diligence, and much more. Today on the show we talk to a leader in this field, Ellie Perlman, founder of Blue Lake Capital. Ellie has over 10 years of experience in real estate investment, law, and property management. She started her career in Israel as a commercial real estate lawyer, leading commercial real estate transactions for Israel’s largest development company. Later, as a property manager for one of Israel's most prominent oil and gas companies, she oversaw properties worth over $100M. Ellie leads Blue Lake Capital, which owns and manages multifamily properties across the U.S., with a focus on Texas, Florida, and Georgia. At Blue Lake, Ellie oversees the acquisitions and asset management of the company's portfolio. She is a Forbes author on real estate investing, the host of the podcast “REady2Scale,” and an avid real estate investing blogger. Ellie holds an MBA from MIT Sloan School of Management and a Bachelor's and Masters in Law from Bar-Ilan University in Israel. Stay tuned as we dive into what pref. equity means, the pros and cons thereof, tips on doing your first pref. equity deal, and more, with Ellie Perlman!
Key Points From This Episode:
- Ellie shares more about herself and her background in real estate.
- She explains what pref. equity is and when one would use it.
- How investors feel being in 3rd position when returns are paid out and how she combats this.
- Ellie goes over some of the pros and cons of using pref. equity.
- Ellie’s advice for doing your first deal with a pref. equity group.
- How to deal with net worth and liquidity when working with pref. equity groups.
- Whether or not Ellie would use pref. equity groups again in the future and why.
- Ellie’s asset manager superpower: Attention to detail.
Links Mentioned in Today’s Episode: