AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
BiggerPockets Daily
1359 - I’m Bullish on Preferred Equity Right Now—Here’s Why by Paul Moore
Jul 4, 2024
Paul Moore, an expert in preferred equity investments, discusses the benefits and recent deal of preferred equity investments. Topics include stability, fixed dividend payments, seniority in bankruptcy, advantages of preferred equity, terms and potential returns of a recent deal in Atlanta's multifamily sector.
08:26
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Preferred equity offers asymmetric risk/return opportunities with higher returns than debt.
- Investing in preferred equity deals requires legal expertise and usually limits access to individual investors.
Deep dives
Benefits of Preferred Equity Investments
Preferred equity investments offer a unique opportunity with lower risk than equity and higher returns than debt. A recent $4 million preferred equity investment in an Atlanta multifamily project showcased a 9% current pay cash flow, 8% upside accruing monthly, and a total coupon of 17%. This investment deal also included reserves for capital improvements, creating a diversified and potentially lucrative investment opportunity.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode