A Hedge Fund is an unregulated pool of investment money, sometimes invested in real estate. By operating outside of financial regulatory requirements applicable to banks or mutual funds, hedge funds may gain investment opportunities that are superior to regulated entities. Annual fees for hedge fund managers are generous, typically 2% of assets plus 20% of profits.
An investment involves the allocation of resources, usually money, into assets or ventures with the expectation of generating income or profit. It aims at wealth preservation and enhancement.
Market Capture, also known as Capture Rate, is a vital real estate metric that measures the share of a particular property or set of properties in relation to the overall market demand.
An optionee is the individual or entity that receives an option to purchase property at a future date for a predetermined price. This provides the optionee the right but not the obligation to complete the transaction. Options are commonly used in real estate and financial markets.
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate.
A Real Estate Operating Company (REOC) is a business entity engaged in the direct ownership, operation, management, and development of real estate properties. Unlike Real Estate Investment Trusts (REITs), REOCs do not necessarily have to distribute a significant portion of their earnings as dividends and are not subject to the same regulatory requirements.
An underwriter inspects and evaluates the level of risk associated with insuring loans, securities, and other types of investments, making decisions that can significantly influence lending practices, policy formulation, investment strategies, and risk management.
