Pref Equity Investment Opportunity In Tranches

Global Pref Equity investment opportunity in tranches

Experienced General Partners seek Preferred Equity Partner(s) for cash infusion to be able to take advantage of ongoing Distressed Commercial Real Estate Opportunities.

Investment would be used as a revolving line as credit secured by ownership in each Entity LLC and the properties.

Description of Assets owned and under consideration:
Asset type: 1 – 4 family (owned), Multi-Family apartment complexes, Senior Living Facilities. All deeply discounted for cash buyers. Must be able to move quickly on closings to do this successfully.
Sponsors are able to secure most of the financing in the form of first position debt (typically as high as 85% Loan to total cost. (This includes 100% of the renovation capital needed but placed in lender escrow to ensure work is completed).

Preferred Investors will have no liability as far as the loan guarantees!!!!!.
Current Tranche Opportunities:
$250,000.00 - Portfolio of 70+, 1-4 family units in Baltimore, Philly, Wilmington, Akron, OH since 2021. Current occupancy 65%. Need $250k to finish repairs, take advantage of discounted payoffs. Total debt is $6M. Stabilized Value when rented $10M. Pref would be in 2nd position. As soon as work is completed, we do a cash out refinance to pay back funds. Units do not have to be leased so there is no delay in closing on new loans.

$200,000.00 - Portfolio purchase of 6 SFR rentals in Philadelphia. Rented and stabilized. Purchase price is $900k. Sponsors are approved for a $700k loan

$300,000.00 - Senior Living Facility in the Pittsburgh area. 148 doors. 20% occupancy. Need $300K for down payment, seller to hold $3M at 6% while business gets relicensed and ramped up. Pref would be a member of the LLC. Appraised value when stabilized including Real Estate is $7M+.

$200.000.00 – 26 unit, 5 story apartment building in Detroit close to major downtown artery. Total Funds needed are $1M including construction. Sponsors are approved for $800K loan. Pref would be in 2 st position. After repair value in the $1.8M range.

The Offering:
A. 12 Months revolving Line of Credit paid back every time there is a refinance liquid moment. Interest only payment every 3 months at 14% annualized. No further equity involvement once funds are paid in full plus interest and LOC is closed out.

B. 12-12-12: Pref investor receives 12% annualized return on dollars invested over a 12 month period
with a 12% equity ownership going forward even after all funds are paid back. 6% interest payment guaranteed first before General partners and this is paid in quarterly payments to the Investor. Use of Funds: Down payment equity capital to purchase distressed real estate with 80% debt from lenders.

Exit Strategy: Continually refinance properties as they become stabilized.
Sponsor info:
FICO score range – 800+, seasoned Borrowers
Liquidity – $200k
Experience – 30 years