Your Partner in Exclusive Real Estate Opportunities for Business Owners
Last Updated: February 06, 2o25
Steve Nabity
February 06, 2025
The Appeal of Exclusive Real Estate Opportunities
Real estate is a powerful tool for building wealth. It has the potential to offer capital appreciation, regular rental income, and important tax benefits. Some segments of the real estate asset class also tend to be less volatile than others and can be a stabilizing factor during times of uncertainty.
Skyline Point Capital has been in business and real estate investing for a few decades. It has built a portfolio of assets for its investors in different locations across sub-segments. Our team of experts has the experience and expertise to evaluate investment opportunities and successfully execute transactions. Our trusted network of professionals on the ground enables us to efficiently manage our portfolio properties.
(The Uptown at Cole Park, Dallas TX – one of our portfolio properties)
In this article, we will discuss:
- Why Real Estate can be an astute investment for achieving your financial goals
- How Skyline Point Capital works with business owners and entrepreneurs
- How Real Estate can be part of a business strategy and not just a standalone investment
- Actions that business owners and entrepreneurs can take right away to get started
Why Real Estate is a Smart Investment
Is real estate a good investment? Don’t just take our word or anyone’s for it. Let us explore what real estate can offer as an investment vehicle. Firstly, real estate can be a long-term investment as it is less volatile than stocks or cryptocurrency. Apartments, offices, and retail spaces don’t just vanish overnight. A stable asset in a strong location will grow with time and inflation. Its rents will increase progressively and there is strong potential for significant capital appreciation over the long term.
Infrastructure developments, changes in the supply-demand dynamics, migration, and economic development can also positively impact real estate. Real estate also offers important tax advantages like accelerated depreciation, interest deduction, and the 1031 exchange to defer capital gains tax. Having good quality tenants on longer leases offers predictability and visibility of rental income. Investors can either be actively involved with their real estate investments or earn a passive income by working with professionals.
The following is a study conducted by real estate services firm CBRE where it compared 4-year rolling returns for the S&P 500 and NCREIF indices. Stock returns, in general, were higher than real estate with some exceptions.
How Skyline Point Capital Empowers Entrepreneurs to Invest in Real Estate
Entrepreneurs and business owners run businesses that generate cash flows. Some of the surplus cash flows need to be invested either to grow the business, execute a strategy, or simply fulfill the financial goals of the owner. Whatever the case, putting the money to work is the most important thing.
There are several ways the money can be invested. Skyline Point Capital believes that real estate provides one of the most promising opportunities for entrepreneurs and business owners to reach their business/financial goals. It has been co-investing alongside business owners and entrepreneurs for several years. Skyline Point Capital has built expertise and networks to identify the most promising opportunities, figure out how much to pay for such opportunities, and then operate the assets to receive all the benefits that real estate has to offer.
Real estate investing isn’t just about identifying an opportunity, estimating its value, and purchasing it. One has to think broadly about how real estate will fit into an existing portfolio of investments, what it will add to such a portfolio, and what type of real estate to invest in. The investment decisions have to be aligned with the longer-term financial goals of the investor. Skyline Point Capital believes in taking such a broader view and works with business owners and entrepreneurs to achieve investment success rather than simply acting as an intermediary to purchase a property. We believe in tailoring the approach to suit the investor’s needs.
Integrating Real Estate Investments into Your Business Strategy
Real estate isn’t just an investment asset class for an individual. It can be part of a business strategy. We talked about this in great detail in our previous post on The Power of Real Estate for Small Business Growth.
Real estate investments can actually be a part of a business strategy. Such investments can provide regular cash flow which can be used to fund the working capital requirements of a business. Selling existing real estate investments for capital gains can fund growth capex. Alternatively, regular rental income from real estate can also fund capex or loan payments for any growth capital that is borrowed.
Real estate can also add stability to the finances. For example, when there was a pandemic, businesses got disrupted across the board. However, people still needed a place to live, and multifamily apartments generated rental yields. The volatility of business cycles can be offset to some extent by the stability of a good-quality real estate investment. If one knows the rental rates and the term of the lease, then there is a level of predictability. Key business decisions can be made knowing that cash flow from a real estate investment is likely to come in the future.
Actionable Steps for Entrepreneurs
Are you wondering how to invest in real estate? Maybe you have questions about evaluating the right kind of opportunities for an investment. Or perhaps you just want to know where to get started.
Some of the things that Skyline Point looks at when evaluating opportunities are firstly knowing what markets to be in, what the macroeconomic environment is like, what business strategy to execute once a property is acquired, and what sort of returns to expect. There are plenty of markets and metro areas in the US. Skyline Point Capital likes to be in areas that are within its circle of competency. It also looks at the overall urbanization theme and prefers locations with good population and economic growth prospects.
Interest rates, inflation, and macroeconomic indicators affect the performance and value of a property. So, knowing where we are in the cycle is also a key factor in our decision-making process. Even before we acquire a property, we have a plan in place of what we intend to do with the property after purchase. We chalk out a plan that may include value-addition, upgrades, or simply a buy-and-hold approach.
Lastly, we like to estimate the kind of return that a property can potentially generate for our investors. We don’t promise the moon to our investors and like to keep our expectations reasonable based on conservative estimates. If a property performs better than the initial expectations, then that is an upside that all investors share.
Entrepreneurs and business owners should first think about why they want to invest in real estate, what goal such an investment can fulfil, and whether they want to get actively involved with the investing or earn passive income while allowing professionals to handle and operate the assets.
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Why SPC is the Right Partner for Business Owners
We hope that you now have an idea of the key benefits of real estate investing. After reading this, you may be getting ideas about how real estate fits into your broader portfolio of investments or your business strategy. Even if you aren’t getting such ideas, there is plenty to learn when it comes to real estate investing. We encourage you to check out complimentary learning resources on our website.
Skyline Point Capital has the expertise to co-invest in real estate with business owners and entrepreneurs by understanding their specific needs. Having built a portfolio of real estate assets across several locations, we have the right knowledge and know the right people to invest in, manage, and sell properties. You can be in the loop on live deals that we are looking to invest in by joining the Founders Investor Club. That way, you will get a feel for the kind of opportunities we like to pursue. We also encourage you to schedule an introductory call with us in case you want to ask us about investing or discuss anything related to real estate.
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