Special Episode Recorded LIVE From The Best Ever Conference Podcast Stage!
Andy welcomes back Aleksey Chernobelskiy, and together we explore the often-hidden complexities and controversies in the real estate investment world. Aleksey shares insights from his new GP-LP Match system, which has sparked quite a stir among industry professionals due to its disruptive nature. Listen in as we unpack the challenges faced by general partners (GPs) and limited partners (LPs), focusing on the risks and misunderstandings that can arise, particularly for those not fully prepared for the illiquid nature of their investments.
Our discussion then turns to the critical issues of capital calls and cross-collateralization risks in real estate investments. We examine how some GPs use debt to fund distributions, potentially misleading LPs about a property's financial health. With a focus on ethical considerations, transparency, and the importance of open communication, we highlight real-world examples of the pitfalls of deceptive practices. We challenge the notion that capital calls should never happen, urging investors to seek GPs who prioritize honesty and clarity over unrealistic promises.
Finally, we delve into the alignment of interests between GPs and LPs, emphasizing the need for transparency and clear communication. The conversation touches on the evolving expectations of LPs, the importance of traditional deal structures, and the recalibration of return expectations in today's market. As we wrap up, we underscore the value of due diligence and consulting with a professional advisor.
(0:00:00) - Industry Controversy and Bridge-Building
(0:12:50) - Capital Calls and Cross-Collateralization Risks
(0:20:54) - Investor Alignment and Partnership Transparency
(0:27:41) - Investment Advice and Expertise Sharing
About Aleksey Chernobelskiy:
Aleksey advises Limited Partners ("LP's) and General Partners ("GP's" or "Sponsors" ) on existing and future investments.
He writes weekly to over 7,000 investors on his Substack where he shares how to property vet and think about LP investments in the grand scheme of their portfolios.
His latest venture, GP-LP Match , gives a users the ability to both post their deals they are looking for LP investors in, as well as to find deals as an LP that match their "buy box".
Aleksey also helps General Partners on matters relating to LPs, like capital calls and distribution pauses and provides feedback on investment decks.
Prior to this advisory work, Aleksey ran STORE Capital's $10 Billion commercial real estate portfolio and oversaw the firm's underwriting team.
Aleksey graduated from the University of Arizona with a quadruple major - Finance, Mathematics, Economics, & Accounting.
Connect with Aleksey
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