RPP – Preferred Equity vs. Common Equity

&nsbp;

Rand Partners own Dylan Marma and Mike Taravella discuss the evolution of preferred equity in the multifamily investing space.

  • Preferred Equity
    • Receives preferred return of cash flow before common equity
    • Doesn’t receive upside 
    • Ideal for investors who want to receive yield
    • This structure has been used in Office and Retail asset classes
  • Common Equity
    • Doesn’t receive preferred return
    • Receives upside 
    • Ideal for opportunistic investor seeking high IRR
  • Expert Tip: Don’t just invest in an Opportunity Zone for the “Tax Benefits”
    • Make sure the deal works first and treat the Opportunity Zone as an added benefit

 

Contact Information:

Invest with Rand Partners 

Follow Us on Linkedin @Randpartners

Follow Us on Instagram @Randpartners

Follow Us on Facebook @Randpartners

apply to work with us apply to work with us
Previous Post
MNS – Darren Light
Next Post
WBP – The Short Term Rental Model with Mike Sjogren

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.

Menu