Where the merchant banks have been even more successful, has been in their ability to lure huge sums of capital into the market.
But I am repeatedly asked how real estate merchant banks differ from Real Estate Investment Trusts (REITs).
Unlike a REIT, merchant banks are not "forced" to buy because they are sitting on a pool of money.
In 1994 we will see a significant rise in the amount of foreign capital that flows through real estate merchant banks.
These high-net-worth investors and corporations not only like the fact that the merchant bank takes its own position, but they also like the returns.
Today, investors in merchant bank deals are realizing returns in excess of 100-percent in 12-18 month periods of time.