The Challenges and Rewards of Structuring a Multifamily Fund

Today, I want to take a moment to reflect on the journey that led to the creation of the Blue Lake Multifamily Fund. As the founder and CEO of Blue Lake Capital, my path has always been driven by a singular vision: to provide our investors with more than just returns, but a partnership that is deeply rooted in trust, growth, and mutual success.
 

When I first began designing the structure of the Blue Lake Multifamily Fund, my thoughts were centered around a simple yet powerful question: How can we do more? This question was not just about financial returns, but about the overall experience and value we could offer to our investors. I wanted to create a fund that was not only successful in its financial endeavors but also rich in educational and experiential opportunities.

 
A Shift in Perspective

Traditional real estate investment often places investors in a passive role, where they wait for returns without much engagement in the actual process. I envisioned something different — a platform where our Limited Partners (LPs) could not only invest but also learn, grow, and feel a sense of involvement in their investments. This led to a pivotal shift in our fund’s approach, focusing on transparency and education as much as on profitability. 

One of my core beliefs is that informed investors are empowered investors. This belief shaped our decision to introduce initiatives like our limited time exclusive Mastermind group, providing a space for investors to gain insights into the intricacies of real estate investing, something typically reserved for General Partners (GPs). It was essential to me that our investors have access to the knowledge and experiences that enable them to understand their investments deeply. 

 

The Strategic Composition of the Fund
In designing our $100M Fund, I was motivated by the potential of the multifamily market, especially in the U.S. sunbelt region. The fund’s structure was meticulously planned to balance risk and reward, ensuring a diversified portfolio that could withstand market fluctuations while seizing growth opportunities.
 

Our profit-sharing structure was designed to maximize LP returns. The reality is that greed has no place in long term partnerships, and success is best shared. Starting from a 50/50 profit split, we offer up to an 80/20 split for higher investment levels, ensuring that investors commitment is rewarded proportionately.

 

Reflecting on Our Commitments

As I look back, I am reminded of the commitments we made — to integrity, to innovation, and most importantly, to our investors. Every decision, from the properties we select to the strategies we employ, is a reflection of these commitments.

The journey of Blue Lake Capital is an ongoing one, marked by continuous learning and adaptation. Our dedication to redefining the investor experience remains unwavering. As we move forward, I am excited to continue this journey with you, building not just wealth, but a community of knowledgeable and empowered investors. 

Thank you for your trust and partnership in this endeavor. Together, we are not just investing in properties; we are crafting a legacy of shared success and knowledge.

As always, Be Bold, Be great, and Keep Pushing Forward! 

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About Ellie Perlman 

Ellie Perlman is the founder and CEO of Blue Lake Capital, a woman owned multifamily real estate investment firm focused on partnering with family offices and accredited investors to build and preserve generational wealth. Since its founding in 2017, Blue Lake has successfully acquired and operated multifamily assets across high-growth U.S. markets, completing $1B+ in transactions.

At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.

In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.

Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.

Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.

You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com. 

*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.

 

 

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