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 upside 
  • 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 upside 
  • 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

 

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 About Jake & Gino: Jake & Gino are multifamily investors, operators, and owners who have created a vertically integrated real estate company. They control over $350M in assets under management. They have created the Jake & Gino Premier Multifamily Community to teach others a simple three-step framework for investing in multifamily real estate. Connect with Jake & Gino here --> https://jakeandgino.com.

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