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By James Yoakum, Associate, Real Estate & Finance Group, Kleinbard LLC Real estate, as an asset class, encompasses countless different niches and subsectors, each of which can appeal to a broad range of investors. From an investor’s point of view, the common denominator across the various real estate asset classes — from single-family homes to apartments to trophy office towers — is the ability to leverage investments in a way that simply isn’t available for most other investment options, not just with bank loans or other sources of debt capital, but also with equity from passive investors. In a nutshell, one reason for real estate’s broad appeal among investors is the ability to control a valuable asset using mostly (or sometimes entirely) other people’s money. When developers set out to raise funds from other people’s money for the first time, there are a few basic considerations to keep in mind. These five simple questions for first-time real estate fundraisers will make your efforts as effective as possible and provide for a successful ongoing relationship with the investors entrusting you with their money. What do I bring to the table? There are more ways than ever for people to invest their …

By David Vincent, investment products specialist, Cadre Inflation is here to stay. November’s 6.8 percent jump in year-over-year consumer prices confirmed fears that rates would remain higher. Now, as investors seek out opportunities for sustained value and long-term growth under changing conditions, hard assets like real estate may become even more appealing. After all, commercial real estate has proven to be an attractive hedge against inflation over the last 40 years. Most experienced investors understand that holding on to your money with the old cash-under-the-mattress technique sadly offers no protection in inflationary periods. Prolonged price increases ultimately erode the value of consumers’ purchasing power. The money you’re sleeping on (or, more realistically, keeping in a low-rate bank account) is steadily losing its real value. As prices rise over time, the amount of goods and services you’re able to purchase with that money is decreasing. Higher-than-expected inflation can also have negative consequences for stocks and bonds. A historical study by economists Fama and Schwert demonstrated that a 1 percent increase in the rate of inflation typically causes bond prices to drop by approximately 1.5 percent and stock prices by 4.2 percent. In contrast, inflation may have a positive impact on physical …