Question from an investor

I got this question from an investor in a syndication after last week's newsletter went out;

"Sponsors are raising capital (fund) and they are structuring the fund under a "pref equity" type raise. They are labeling the fund as "rescue capital" or opportunity fund. Then they go on to explain that the fund is for one of their own properties for improvements and/or capital to fill the gap for a new refinance. So the new investors would fall under the first mortgage bank debt and above the original LP's in the cap. stack...sounds questionable to me...legal..? maybe...ethical..? maybe not..."

We will be answering questions like this in our live event on April 3, 2024 at 9am Pacific. Panelists include Mark Roderick, attorney, Tom Castelli, CPA (real estate specialist), and Irwin Boris and Joe Blackbourn, investor/sponsors.

Register for the event here.

And if you know someone who might be interested in joining us but who doesn't get this newsletter, please feel free to invite them to join.

Here's more information on the event.

Adam

PS. For all this week's latest news, updates, and commentary from the commercial real estate syndication and crowdfunding industry, click here.