Value can be defined multiple ways and often varies depending on where you sit at the table. Sometimes, a different set of eyes can see upside potential based on familiar circumstances. Common equity has the most upside potential because of the perceived risk at the top of the stack.
First draw cash flow based on detailed financial history is more aggressively priced, but with the benefits of commercial real estate, you can protect and grow your wealth quicker than you think. Preferred equity is performance based, but returns can often beat conservative projections.
Participating in a deal lower in the capital stack may not be as exciting, but doing so carries less risk and produces a good return on invested cash. Points paid up front at closing, pre-payment charges and exit fees can bump an 8% interest coupon to double digit returns and still provide overall lower risk.
TARGET INVESTMENT CRITERIA
PROPERTY TYPES: Office, Retail, Industrial, (10,000 sf and up) & Multifamily (50 units and up)
GROSS PROPERTY VALUE: $2 - 10 million
INVESTMENT STRATEGIES: Lease-Up, Repositioning, Recapitalization, Management Turnaround, Add On Development
GEOGRAPHY: Gulf South Markets
INVESTMENT STRUCTURES: Equity Joint Ventures, Preferred Equity, Fixed-Rate Mezzanine
AVERAGE HOLD PERIOD: 3-5 Years
Step 1: Register as an "accredited" investor.
Step 2: Research due diligence documents on current investments.
Step 3: Invest using our state of the art platform.