Equity and Joint Ventures – Understanding the Cost
Most commercial real estate investors today instinctively know that they need to investigate Equity and Joint Venture structures to get deals done but most don’t really understand the cost in today’s market. In order to understand the cost of Equity and Joint Venture funding structures commercial real estate investors and commercial real estate agents must first understand that there are unseen costs that are hurting their ability to make successful deals.
The Cost of Lost Opportunity
The primary cost to most commercial real estate businesses whether they are CRE Agents/Agencies or CRE Investment Firms, is the Cost of Lost Opportunity. The Cost of Lost Opportunity is the cost associated with not making a deal happen or not moving forward because of a perceived or mental barrier against the soft costs associated with accepting non-traditional financing.
The Cost of Lost Opportunity has been devastating to many commercial real estate developers, commercial real estate agents and agencies, and commercial real estate investors. A lack of realization that traditional lenders with low points and low long-term rates have left the market for the most part and that void has been filled with ‘opportunistic’ funding sources with higher cost has paralyzed many commercial real estate professionals.
Understanding that giving up a share of potential profits in order to make great strides in their business has caused the lost of hundreds of millions of dollars for commercial real estate investors in today’s market. In Equity and Joint Venture structures, the cost of the money may seem prohibitive at first, but the reality is the leverage that these structure provide can help commercial real estate investors with limited cash make huge purchases viable and can facilitate the rapid growth of portfolios.
Understanding the Cost of Equity and Joint Venture Structures
Equity and Joint Venture structures admittedly come with costs that seem higher than traditional lending sources, however …. continued here ….
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… Dividend America | Commercial Lending has one of the most diverse lending platforms in the Nation. We provide Equity and Joint Venture, Bridge and Mezzanine debt as well as traditional long-term debt from SBA 7(a) & SBA 504 to Life Insurance Syndication Conduit financing and Non-HUD Assisted Living Facility Construction Financing.
With office in Phoenix, AZ (Scottsdale) and Atlanta, GA and consultants in cities all over the nation we can assist you with all your commercial real estate needs. From purchase to rehab to long-term hold debt, we have strategies that are right for your situation.
Equity and Joint Ventures available in all 50 states! Preferred markets include the top 21 markets in the Standard & Poor’s Case Shiller Index – Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, Fort Lauderdale, Orlando, San Diego, New York, San Francisco, Phoenix, Atlanta, Tampa Bay, Detroit, Minneapolis-Saint Paul, Charlotte, Dallas / Fort Worth, Portland, Seattle, Cleveland, Oklahoma City, Jacksonville, Indianapolis, Nashville, Kansas City, Louisville, Milwaukee, New Orleans, Philadelphia, Raleigh, Sacramento, Salt Lake City, San Antonio, San Jose, Saint Louis, Tucson, Austin, Baltimore.