When choosing where to invest your hard-earned money, you must understand the kind of fund or investment you are looking into whether it is in real estate or not. But, if you do consider diversifying your portfolio with a real estate investment, there are options such as investing in a single asset or a multi-asset fund. So, which of two will give you better returns and confidence that your investment will be able to help you achieve your set financial goals?
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In this episode, our very own Whitney Sewell and Sam Rust differentiate single asset and multi-asset funds. Whitney and Sam discuss the funds they are offering in Life Bridge Capital and why they are focusing on multi-asset funds right now. Sam says the advantage of investing in a smaller firm like Life Bridge Capital is that they have more flexibility and minimize risks of the investment. Whitney also details how hiring class A talent for the team is crucial. And finally, they talk about the fund being divided into development and value-add deals which they believe are allowing them to explore to the greater upside. Listen now and learn about multi-asset funds!
Key Points From This Episode:
- Sam differentiates single asset funds and multi-asset funds.
- Whitney talks about Life Bridge Capital’s multiple property strategy, geographical diversification, and cash flow diversification.
- The advantage of investing in a smaller firm like Life Bridge Capital — flexibility.
- What are the criteria of a fund that investors need to know before they invest in a multi-asset fund?
- Sam details the macro strategy of Life Bridge Capital.
- Whitney shares Life Bridge Capital’s seed deal.
- Sam talks about Life Bridge Capital’s deals that are already under contract.
- Whitney explains why hiring class A talents — from assistants to asset managers, is crucial. He also talks about Life Bridge Capital’s property management team.
- Sam shares Life Bridge Capital’s strategy in finding the right property management team — boots on the ground and knows the market.
- The difference between property and asset management.
- Life Bridge Capital’s return structure.
- Sam discusses Life Bridge Capital’s equity multiple hurdle.
- Sam shares Life Bridge Capital’s detailed monthly distribution for its new fund.
- Sam assures the tax benefits in Life Bridge Capital’s C Fund are being explored.
“One of the advantages of investing in a smaller firm like Life Bridge Capital is our flexibility. We can respond to changing market conditions a lot faster.” [0:04:40]
“You need to know what kind of asset the fund is going to be chasing.” [0:05:56]
“States like Idaho, Colorado, and Utah are tech friendly, crypto friendly, and just generally friendly to business. So, we want to take advantage of those demographic trends.” [0:06:40]
“Generally speaking, we’re looking at a much higher return on a development deal even with pretty conservative underwriting.” [0:08:49]
“We at Life Bridge Capital believe in really strong communication and giving distributions on a monthly basis.” [0:17:30]
Links Mentioned in Today’s Episode:
About Whitney Sewell
Founder of Life Bridge Capital LLC, Whitney began his real estate investing career in 2009. Whitney’s passion is working with investors, helping them secure financial security via the exceptional opportunities that multifamily syndication offers. Whitney hosts The Real Estate Syndication Show, a daily podcast where he has now interviewed over 1000 experts providing cutting-edge tools and strategies of the syndication business. Whitney and his wife Chelsea are on a mission to help other families through the process of adoption. They have personally endured the financial burdens that the process puts on families and have committed 50% of their profits to this goal. Whitney and Chelsea have three children by adoption.
About Sam Rust
A lifelong learner, Sam Rust is a managing partner at Life Bridge Capital and full-time investor in commercial real estate. Sam graduated from Thomas Edison State University with a BSBA in Business Management and currently lives in Colorado with his wife and 5 children. He has been active in commercial real estate since 2017 and has led the acquisition of a portfolio of properties across Colorado and Idaho with a value in excess of $100 million.
When not underwriting or touring properties, Sam enjoys spending time outdoors with his family chasing beautiful views, Ultimate Discs, or big game.
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