RPP - Preferred Equity vs. Common Equity

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

You can contact us to get more choices