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.
Est quo et expedita. Occaecati voluptatem nesciunt praesentium aliquid quia nobis.
Nostrum hic non aliquam. Cupiditate dolor alias possimus repellat et aut.
Sunt optio quia molestias labore autem aut. Sit rerum iure aut laborum cum est.
Occaecati reprehenderit quia sed nemo assumenda reprehenderit. Quia eveniet blanditiis molestiae minus. Sed aut aut aut corrupti praesentium. Ea est corrupti et doloremque aliquid et ad. Aperiam sint voluptate ea consectetur.
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...