Private Commercial Real Estate.
Why Private Real Estate over Public Real Estate?
Like stocks and bonds, public real estate investments have a high correlation to the public market giving them high volatility. On the other hand, private real estate has shown historically low market correlation. In an age where equity markets have increased volatility and uncertainty, private real estate investing can provide unique opportunity for targeting substantial above-market returns.
The Difference between Public REITs and Private Real Estate.
Public real estate investment trusts (REITs) are more correlated to the stock market than private real estate. Private real estate investments—the sole focus at MLG Capital—target above-market returns and mitigates public market volatility.
Real Estate Can Be an Inflation Hedge
Two primary drivers of inflation are economic growth and monetary base changes. Private real estate can perform very well in these situations.
Primary drivers of inflation.
- A better economy drives inflation by increasing demand for products and services. This reduces unemployment and increases wages. As a result, companies raise prices—increasing inflation.
- Changes in the monetary base occurs when a central bank prints money. This makes each unit of currency worth less than before.
Inflation drivers fuel real estate demand.
A better economy raises companies need for real estate due to labor and capital increases. More demand for commercial real estate, along with the time lag for new supply, allows real estate asset owners to increase their income and value through higher rents and higher occupancy.
The graph shows asset type performance through inflationary cycles.
Advantages of investing
in private real estate.
Our Investment Philosophy
Our Investment Philosophy
Mitigate risk with diversification.
Diversifying your investments reduces the overall risk of your investment portfolio. Private real estate funds managed by MLG Capital provide real diversification, spreading investments across geographic markets, property types, property classes and even managers.
Gain access to new opportunities.
Through MLG Capital, you have access to a private commercial real estate (PCRE) portfolio which was once only available to institutional investors. Our strong, private commercial real estate network provides the unique opportunity to be a local investor—nationwide.
Take advantage of the small to mid-cap space.
While other real estate investment firms may try to be everything to everyone, MLG Capital sticks to what it knows best: taking advantage of opportunities in the small/mid-cap property space. These properties provide a greater potential for higher targeted returns and generate higher yields.
Leverage local knowledge and local relationships.
MLG Capital has offices in WI, TX and FL, and has accumulated over 1,800 contacts from across the nation as part of which we seek opportunities and partnerships. These local contacts allow us to capitalize off their local knowledge and local relationships.
Plan. Execute. Realize Potential.
We buy real estate through all points of the market cycle, as both good and bad environments create different types of opportunity. We typically target opportunities that may contain all or some of the following characteristics:
- Buying Off-Market
- Key Relationship Referrals of Local Sponsors
- Operator inefficiencies
We create value with a proactive approach.
A typical MLG Capital deal has an active strategy to grow revenue, either through property improvements, expense reductions, or occupancy improvement. While others wait for asset appreciation to do their job, MLG Capital proactively works to increase both the cash flow and value of the properties we acquire.
We invest in the same funds we offer you.
We have the courage to invent and champion unconventional solutions to investment experiences. We focus on acquiring the best assets available, in the best locations, at the best time. This in turn provides the best possible returns for our investors.
A fund structure that puts you first.
Since profit participation for MLG Capital only starts when our investors have accrued an 8% annual return and received 100% return of capital, we have genuine skin in the game to work diligently and deliver significant value to our investors.