Articles
NetLeaseX Capital has the deal structuring and loan workout expertise which can help our clients with their financial objectives and capital requirements. You can read the below articles which have been published in the Scotsman Guide, an industry publication for commercial lenders and mortgage brokers about how real estate investors can raise preferred equity to help fund ground-up development projects and profitable acquisitions and to facilitate loan restructurings.
Strategize With Preferred Equity
The Scotsman Guide
December 2018
This featured article gives an overview on how real estate investors can increase leverage by raising preferred equity to fill the gap between the amount an investor can raise in senior debt financing and the sponsor’s equity investment. This article further discusses various ways preferred equity investments can be structured including, for example, creating one or more tiers, waterfall priority order (e.g. A/B structure vs. pari passu), recourse, repayment schedules, control rights, and capital shortfall requirements.
Throw Out A Lifeline
The Scotsman Guide
July 2020
This featured article discusses how real estate investors may be able to raise rescue financing to cover operating losses and/or mortgage payments during the Covid-19 crisis. Raising rescue financing is especially important for real estate investors who may face substantial liability due to personal loan guarantys if their lender were to foreclose; thus, triggering a forced sale at a fire-sale price.
Ride To The Rescue
The Scotsman Guide
August 2020
As a follow-on article to “Throw Out A Lifeline”, this article discusses how rescue financing, in effect, works like bridge equity, a temporary infusion of cash from an investor that well eventually be bought out via refinancing or sale when real estate markets normalize. This article further lists various ways how rescue financing can be structured both as debt and equity investments.