KMB investors profit from our knowledge of the complexities of the Real Estate market without having to do all the research and legwork on their own. We find, fix and flip 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 area.
We are a Real Estate Fund which resembles a hedge fund or a REIT and has a General Partner (GP) – Limited Partner (LP) structure.
We also offer capital investment returns. If you just want a safe and secure fund to grow your capital annually, KMB is the place to do so. We can provide yearly returns on your capital without any ownership through the revenue we receive from our long term assets.
Check out the Rules and Regulations paige to learn more about our two forms of investment.
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) – BW Asset Management, LLC
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 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.