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 upsideÂ
- 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 upsideÂ
- 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
Â
Contact Information:
Invest with Rand PartnersÂ
Follow Us on Linkedin @Randpartners
Follow Us on Instagram @Randpartners
Follow Us on Facebook @Randpartners
You can contact us to get more choices
