Private Real Estate Investments

Free CFA Level III: Private Markets lesson in Private Real Estate. 24 min read, ~3,567 words.

Private real estate spans core (stabilized income, low leverage, 6-9% IRR), value-add (repositioning, 11-14% IRR), and opportunistic (development or distress, 15-20%+ IRR); leverage and risk rise together. Three return sources: cash yield, appreciation (NOI growth plus cap-rate movement), and leverage; higher-risk strategies tilt the mix toward appreciation and leverage. Cap-rate...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

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