This topic contains 1 reply, has 2 voices, and was last updated by 
Josh Stern November 16, 2022 at 10:27 am.
-
Posts
-
Josh Stern
ModeratorAdding a concept that can help speed growth for the REIT living framework coalition.
Investors & owners may have difficult financing purchases with cash, but waiting for approval from the usual lenders & the standard process leads to extra interceptions, fumbles & rejections as casualties of the cold war. In this situation, we can speed growth by pairing mgmt approved long term holder with equity stakes in particular properties with agreements to temporarily finance a purchase from an outisde private holder using cash for speed, & then later take cash back out internally to generate a more typical equity position in a particular property. Is that bs. bookkeeping? Not if the initial financing comes from the equity growth stake in a related venture that sees a return from large scale collections of transactions. The approvaed equity holders of the particular property are taking the risk for their own fast appraisal, etc, while the short term financiers are looking for some return that is not the long term mortgage lendidng structure.
You must be logged in to reply to this topic.