Chris PrefontaineSerious about making money in the real estate investment business? Free Webinar - REGISTER BELOW!, Smart Real Estate Coach · Chairman, Founder, 4x Best-Selling Author of "Real Estate On Your Terms," Forbes Business Council Member, 3x Inc 5000 Honoree, Global Rank TOP 0.5% Podcast Host

What Are Fund Managers In Real Estate? #shorts

7 Feb 2025 · 1 min

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In this short video, Chris Prefontaine of Nighthawk Equity describes a real‑estate transaction currently under contract in the northeastern part of Atlanta. He notes that Nighthawk Equity’s portfolio comprises roughly 1,800 multifamily units with six or seven completed exits, and that the new acquisition is a Class CC+ value‑add deal. The speaker explains that Nighthawk Equity is entering the transaction through a joint‑venture partnership with “fund managers,” a term he uses for capital‑raising specialists. He outlines the SEC‑mandated structure these fund managers must adopt: they form a separate legal entity with its own tax identification number, private‑placement memorandum, and other legal documents, then raise investor capital into that entity, which is subsequently used for the joint‑venture investment.

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Yeah. In my world, our investment company is called Nighthawk Equity and we actually have a deal under contract right now, which is pretty cool. It's in the northeastern part of Atlanta where the majority of our portfolios, we have about 1,800 units and we've exited about 6 or 7 of them. And yeah, so it's a Class CC+ value-add deal. And we are also joint venturing. So we are partnering with what's called fund managers. So these capital raisers is the general term I would use for that. The technical term is more like fund managers. So these are people who are specializing in raising capital. That's their career path, kind of like a deal finder's career path. And the safe way to do it, the way the SEC requires us to do it, is to basically create a fund. So it's basically these capital raisers create an own entity and their own tax ID and their own private placement, their legal docs, and they raise money into that.