Private Investment Opportunities in Alternative Asset Classes
Our philosophy for creating wealth provides for not only diversified tax strategy and investment funds, but also diversity in asset class. Real estate, as an alternative asset class, provides for investments with low correlation to equity markets. But like everything else Prevail does, we’ve taken a different approach than traditional wealth management companies.
The traditional model is to have generic real estate funds (REITS, mutual funds, etc.) that are utilized based on risk tolerance to balance a portfolio. However, as recent history has shown, real estate markets can also have significant swings that present opportunities for significant growth. To that end, we identify off-market opportunities in specific real estate sectors and conduct in-depth analysis, all to provide our clients with specific property investment opportunities.
Why Invest in Real Estate?
Direct ownership in an alternative asset class
Real estate can act as a shield against inflation for a couple of reasons. Firstly, property values tend to rise alongside inflation, meaning your investment holds its value. Secondly, if you’re renting out the property, you can typically adjust rents upwards to keep pace with inflation, providing a steady income stream that isn’t eroded by rising prices. While not a perfect hedge, real estate offers a potential way to combat inflation’s negative effects.
Where We Invest
Our Properties
Deals We’ve Closed On.
-
Flint Medical Investors
Located in Flint, MI - Medical Facility -
Edgewood
Located in Transfer, PA
- Surgical Hospital -
Crosswinds II
Located in Ankeny, IA
- 221,000 SF Industrial Development -
WFM3801
Located in Flower Mound, TX
- Assisted Living and Memory Care Village -
Belle Grove at Custer
Multiple Locations
- Extended Stay Hotels -
Woodsprings Tremont, LP
Multiple Locations
- Extended Stay Hotels -
Southrail Business Park
Located in Charleston, SC
– Business Park -
Lavera Lake Highlands
Located in Richardson, TX
– Multifamily
Real Estate as a Hedge against Inflation
Property Income: is derived by lease payments, and generally speaking, inflation will typically put upward pressure on rent rates. If investors/owners can increase the lease rates, it is a natural hedge against inflation. But it doesn’t impact every sub-sector the same. Properties in industrial and office sectors typically are 4+ years in length, with anchor tenants often having a ten-year or longer contract. In those cases, the cash generated is basically fixed, and real returns would be reduced by inflation. Contrast that to multi-family or hospitality where lease terms are measured in one night or up to 1 year for an apartment, and adjustable rents can help hedge against inflation.
Property Value: is most often calculated based on net operating income and a cap rate. The higher the cap rate, the less valuable the property. The lower the cap rate, the more valuable. Oversimplifying to illustrate, historically, cap rates move up as interest rates rise, and interest rates generally move up to counteract inflation. Yet, it’s again not that simple. There is a counterbalancing force. As prices for materials and labor move up with inflation, new construction is more expensive, leading to higher valuations for both new construction (likely in lower supply) as well as existing properties. We see that happening today with big rises in single-family home prices.
Interest rates for borrowing: inflation devalues currency which causes lenders to charge higher interest rates to make a profit. Like increases in raw materials, that causes developers to be more selective on new construction, which in turn limits supply and consequently increases values in existing properties.
Market Demand: if income, value, and interest rates aren’t complicated enough, the demand for real estate is another variable that impacts real estate performance. Historically, investors demand for hard assets increases during inflationary periods, including real estate, precious metals, and oil which then tends to move values up.
Does real estate provide a hedge against inflation?
Real estate can be an effective hedge against inflation generally. The appreciation in value (not the income production) can work to offset inflation.
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How It Works
Begin Here
At Prevail Alternative Assets we help you through the whole process . As an accredited investor, you’ll gain access to exclusive investment opportunities and a dedicated team to help you achieve your financial goals. We’ll connect with you to discuss your investment preferences and find the perfect fit for your portfolio.
Learn
Learn from the best with our educational videos, podcasts, and blogs. Plus, gain exclusive access to monthly in-person workshops and live webinars featuring highly successful real estate investors. Get the knowledge and insights you need to succeed!
Invest
Be the first to know about exciting investment opportunities! We’ll invite you to attend a live presentation with Q&A, giving you the chance to learn all the details. Once you’re ready to invest, we’ll guide you through every step of the process, ensuring a smooth and informed experience.
Wealth Creation
Grow your wealth and unlock freedom with every smart investment. Build a secure future, one investment at a time. Diversification, passive income, and financial freedom are all within reach. Every asset you add brings you closer to your goals.
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Company Info
This communication is neither an offer to sell nor a solicitation of an offer to buy any security. An offer may only be made via a written offering document by Prevail Alternative Assets, LLC (“Prevail”). Prevail will provide such offering documents (“Documents”) only to qualified accredited investors and has prepared this communication solely to enable you to determine whether you are interested in receiving additional information about it or the real estate project summarized above (the “Project”). This communication must be read in conjunction with the Documents prior to making any investment decision. Information about the Project contained herein has not been audited or reviewed by any third party. While projections about the Project’s future performance is based on Prevail’s experience and good faith judgments, the recipient should understand that projections are based on numerous assumptions, including that the current economic environment continues, that existing asset performance trends will continue to track business plans, that historical behavior of the Project’s property type will not change, that perception of market opportunities for disposition will hold true, and that the competitive landscape within which the Project operates will not change. Returns to investors would be contingent upon numerous events occurring and subject to considerable risks. Significant assumptions were made by Prevail to calculate the presented projections, including assumptions on the amount of leverage used by the Project, the Project having sufficient assets and cashflows, debt service and capital expenditures, the continuation of favorable leasing terms, the operating costs for the Project, the costs of taxes and insurance, the absence of claims against the Project, that lease terms (including rental rates) continue, that projected occupancy and rollover rates continue, that management and other expenses remain constant, and that property-level debt will not need to be refinanced at less favorable terms.
The Project’s future capitalization will be contingent upon numerous events occurring and subject to considerable risks. The occupancy and rollover rates of the Project will be dependent upon many factors beyond the control of the Project or Prevail. Any expression of targeted rates is merely a statement of a goal. Significant assumptions were made by Prevail to calculate the presented occupancy and rollover rates. Many factors can impact the Project’s after-tax returns, including the risk that tax laws may change. A myriad of factors may impact the Project’s ability to achieve any returns. Any number of factors could contribute to results that are materially different. All investment opportunities presented by Prevail involve substantial risk and may result in the loss of some or all of your investment. Please do not forward this email.
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