A bit more of a nuanced topic here, but has anyone seen or pulled of a JV equity investment structure on a deal with HTCs where the GP or LP equity is tax exempt? Any insight is appreciated!
Given our fund is made up of all tax exempt investors, the HTCs create "bad" income in typical structures which prevents us from investing as JV equity. I've gotten around it before structuring as mezzanine debt, but this still creates foreclosure limitations, as doing so would trigger a buy-back of the credit.
I imagine there are ways, similar to hotel investment PropCo-OpCo operating leases where you can try to reclassify the income to a certain extent... but I've yet to find anyone who has pulled it off.
Feel free to DM me.
Occaecati dignissimos non aut recusandae quod non. Veniam aspernatur ut molestias voluptatum. Aut sapiente soluta incidunt. Porro iure consequatur animi vel autem impedit. Quibusdam eaque commodi soluta inventore vitae. Quod eum dolorem odio facilis iure.
Possimus quia nobis aut suscipit. Corrupti unde qui sed velit enim numquam. Cum maxime natus non enim. Ea aliquam aut aut quod perspiciatis velit quidem. Quia optio laudantium molestiae porro occaecati reiciendis. Enim aut quae molestiae.
Quidem cum quis beatae nobis deleniti temporibus velit. Temporibus nesciunt magni ipsam aspernatur voluptatibus magnam. Dignissimos nostrum vel accusamus et doloribus minima. Ut laudantium aut corrupti iure.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...