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Preferred Equity Deep Dive + Q&A

Masters of Moments

NOTE

Balance Debt for Flexibility

Choosing a lower leverage strategy can alleviate the pressure of debt payments, allowing more focus on cash flow management. Utilizing preferred equity with accrued returns provides flexibility, as it permits the deferral of current payments, offering relief from continuous financial obligations. Structuring deals with options like capped returns or backend participation enables long-term asset holding without immediate equity needs. This strategy supports refinancing approaches, ultimately allowing the investor to own the asset fully and leverage resources effectively for sustained growth.

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