KMB investors profit from our proven expertise and knowledge of the complexities of the Real Estate Market while we do all the heavy lifting for them. We source, fix and flip/rent foreclosed property deploying a unique proprietary technology process which is sustainable, scalable, repeatable and predictable. The majority of our holdings are located in the Northern New Jersey market. These markets are dense in population, have supported incomes and job growth, and are close to city transportation systems.
We are a Real Estate Fund which resembles a hedge fund or a REIT and has a General Partner (GP) – Limited Partner (LP) structure. KMB Investments LLC, is limited liability corporation in the state of NJ on February 2015. The Principal General Partner in KMB Asset Management is Balram Hingorani.
We also offer the ability of a general capital return. Similar to those of hedge funds or securities package. Only difference is, all of our holdings are in real estate; which by our standards offer you a safe, hard asset, with transparent value and revenue.
What is a GP and LP?
Real Estate funds have several moving parts. The term “Real Estate Fund” can seem complicated to the outside world, but the basic structure of a RE investment is simple. At their core, Real Estate funds are a collaboration between general partners and limited partners that are passive investors.
The General Partner (GP)
Real Estate firms are operated by a general partner (GP), who aggregates investments that they have sourced from limited partners (LPs). Blackstone, KKR and Apollo are examples of GPs. Remember, they are Real Estate firms; they are not Real Estate funds.
HERE’S A QUICK OVERVIEW OF THE Limited Partner Process:
A Real Estate firm (the GP) raises money from investors (LPs) for a specific Real Estate fund. The fund is made up of “investments,” or homes (1-4 family or multi family or commercial etc.), that the Real Estate firm believes it can use to create value.
The GP manages the fund for the benefit of that fund’s LPs. Real Estate firms can manage more than one fund at a time—each with different LPs—although it is common for LPs to invest in multiple funds managed by the same Real Estate firm
The Limited Partner (LP)
(formed under SEC Reg D -Rule 506)
So, who can invest as a Limited Partner to a Real Estate fund?
In times past, LPs consisted mostly of large institutions (like pension funds, labor unions, insurance companies and universities) and very wealthy families (the sorts of family names that appear each year on the Forbes 400).
In modern times, LPs come from a broad array of entities and people. There are hundreds of thousands of people investing in Real Estate funds who, while accredited investors, do not have the massive wealth that was standard in days gone by. That means there are more opportunities to participate in a formerly exclusive class of investments.