Let’s talk land aggregation strategy. Consider this, you have put together a portfolio of some great opportunistic development deals, each with immense upside potential. All you need is the initial big chunk of investment in land to get started. But you know that no bank is ever interested in funding land costs. That’s the prerogative […]
Sometimes, your investors will want to see financial statements. Though this is usually something left to accounting, it’s not a difficult thing for you to draft up on your own. It actually just takes the simple steps of familiarizing yourself with the broad framework of financial statements, learning the basic rules of accounting, and creating […]
In this article, we discuss the anatomy of two business structures – Project Finance and Corporate Finance – and why a Project Finance Structure is best suited for CRE deals by making the fund management process more investor friendly. How choosing the right finance structure in CRE deals can make or break decisions In the […]
The internal rate of return (IRR) and compound annual growth rate (CAGR) are both metrics used to analyze investment returns. They’re both commonly used in commercial real estate financial modeling, but what’s the difference? When should you use IRR and when should you use CAGR to model your cash flows? Read this deep dive to […]
In this article, we’ll talk about land equity development strategies where the landowner contributes their land to the partnership. In these situations, land ownership is either immediately conveyed or deferred until development is complete. Read below to learn about land equity as a source of leverage, what’s in it for the landowner, two example structures […]