Fairway America was founded in 1992 by its CEO and Chief Investment Officer, Matt Burk. Fairway coined the term “Small Balance Real Estate” (SBRE) in 2012 and with it defined the common thread of an industry. Fairway has been investing in SBRE deals since then and managing its own discretionary SBRE funds since 2001. Since 2012, Fairway has helped to architect, structure and create more than 125 funds and syndications for other SBRE entrepreneurs and managers around the United States. Fairway’s core business strategy is to identify, create and engage in long-term relationships with high quality SBRE stakeholders, which includes both SBRE entrepreneurs and investors. As both SBRE entrepreneurs and investors ourselves, we have a visceral understanding of the space.
WHAT IS SMALL BALANCE REAL ESTATE?
SBRE refers to any real estate asset-based investment opportunity that is non-institutional in size, scale and scope. This includes a wide variety of real estate asset-based strategies and types including private money lending, value-add direct acquisition of real estate (multiple asset types both residential and commercial), acquisition of distressed or discounted debt, and much more. SBRE transactions represent a large percentage of the total volume of real estate transactions in the United States1. SBRE is a highly fragmented market with opportunities to potentially generate attractive risk-adjusted returns for investors. Learn more about Small Balance Real Estate
An SBRE Entrepreneur is anyone running a business that originates and/or acquires real estate-based assets of some type and who must regularly and repeatedly raise capital from investors (most often non-institutional investors) in order to fund all or a portion of the acquisition of those assets. There are many thousands of SBRE entrepreneurs around the United States. Learn more about SBRE Entrepreneurs
Accredited Investors, a term defined by the Securities and Exchange Commission (SEC), must meet certain criteria to obtain special status under financial regulation laws which provides access to complex and perceived higher-risk investments such as SBRE, venture capital, hedge funds and angel investments.Generally, accredited investors include high-net-worth individuals and entities, banks, and other financial institutions. Fairway America and many other SBRE entrepreneurs work mostly with high net worth accredited investors as a primary source of capital for their SBRE businesses.