As Investment Realtors we function in the same way as do Investment Bankers. That is to say that we act as Principals for our own account as well as Agents for others. Furthermore, we are Asset Managers as well as Property Managers. As Principals we buy and sell various classes of real estate for our own account. These activities usually involve high risk. While we may feel that the potential reward is worth the risk we are mindful of our fiduciary responsibility to our clients and their tolerance for risk.
As Agents we seek investment opportunities with suitable risk reward ratios and then offer our clients the ability to invest with us. Our compensation comes from management fees and a minority portion of the income that exceeds any priority return promised to our investors. Up front fees are usually limited to out of pocket expenses. We always remain involved in the control of the asset. This is accomplished in either of two ways. First, we act as Property Managers, that way we know what’s happening on a daily basis. Second, when it is not possible to manage the property, generally because our joint venture partner is the manager, we insist in being involved in the Asset Management which in essence controls the destiny of the asset. As a result we are included in making decisions relating to financing, renovating or selling an asset.
If you would like more information,
please contact:Joel Gendels