Structuring Preferred Equity Investments in Real Estate Ventures: True Equity vs. "Debt-Like" Equity

PEIs, together with mortgage loans and mezzanine loans, are often a critical part of the capital structure used by sponsors to fund real estate ventures. The terms of PEIs can vary considerably. On one end of the spectrum are PEIs that are economically and functionally equivalent to a mezzanine loan, though structured as equity and not debt. On the other end of the spectrum are PEIs that are pari passu with the sponsor’s equity. In any context, a PEI’s equity is subordinate to all of the real estate venture’s debts.PEIs typically earn a higher rate of return on the investment than debt financing, and may earn a share of cash flow beyond a stated rate of return and of any capital appreciation.
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Spotlight

In this episode of TalkingSense we’re talking some sense with Craig Rosenberg, Chief Analyst and Co-founder of TOPO. We’ll go behind the scenes of the building of TOPO as well as get the CliffsNotes version of their recent ABM study.


OTHER ON-DEMAND WEBINARS

The Howard Hanna Showcase of Homes Pittsburgh 8-21-2016

howardhanna.com

Howard Hanna Real Estate Services is a family-owned, locally managed real estate company with 60 years of expertise. As an industry leader, we work to develop innovative programs that bring together buyers and sellers.

New Section 514(c) Fractions Rule Guidance for Exempt Orgs: Avoiding UBTI in Real Estate Partnership Investments

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This webinar will provide advisers to tax-exempt organizations with a practical guide to the fractions rule, which governs the tax implications of allocations between tax-exempt partners and taxable partners. The panel will detail recent IRS guidance permitting certain partnership allocations that may have otherwise violated the fractions rule. The webinar will define the specific issues and challenges the fractions rule presents for exempt organizations in designing an investment strategy.

Brokers, it’s time to accelerate your business with DocuSign

Inman News

We had an exciting unveiling of a brand-new transaction management tool for brokers right here on our webinar with Cartavi/DocuSign. In this webinar, join Glenn Shimkus, DocuSign’s vice president of real estate solutions, as he provides a first look at the new broker offering from DocuSign: Cartavi Transaction Rooms for Brokers.

Creative Real Estate Financing Options

Lorman

With the death of the subprime lending market and the tightening of credit guidelines potential homebuyers and real estate investors have to identify creative finance options that will lend them money or finance a property with reduced credit guidelines and a high LTV. Today homebuyers have diminishing loan options therefore creative finance options have experienced a rebirth and are being hailed a savior in today's market. This OnDemand Webinar dissects creative finance options and helps establish a strategy to obtain financing in today's real estate market. This program helps people acquire real estate when a traditional loan product will not work.