When it comes to secure debt financing for a RE project, savvy RE sponsors, builders and developers understand that “terms” are always more important than “interest rates”. In order to secure the terms (and the rates) that the project needs, they must come with a solid equity structure (down-payment). RE investors understand that the difference between a 20% and 30% down-payment can make a huge difference in both; “terms and rates”, however the million-dollar question arises: “Where to get such a big dawn payment for each project?” – The answer is: Preferred Equity.
Real estate owners and developers have been increasingly turning toward preferred equity structures and private investors in order to raise much needed capital for the purchase, renovation and development of real property where such capital is unavailable from traditional lending sources.
The delays caused by the red-tape and tons of paperwork required by traditional financing institutions are increasing the time of getting the financing that is required by the modern RE investments.
Preferred equity investors are fully capitalized and always looking for deal-flow and quality-projects. At Capital Insiders we offer a solution for both: (a) investors looking for a secure place to deploy their capital, getting consistent returns while security is still the number one drive of our company, and (b) to the RE developers/builders looking for the “extra capital” necessary to access the financing required for their projects.