I know this has been touched on somewhat here, but I'm looking for something comprehensive on valuing LIHTC GP/LP partnership interests and how a developer values a property if they intend to re-syndicate it versus re-positioning it to market rate. I understand how to value market rate re-position which is pretty straightforward but valuing the GP/LP interests or the project as a re-syndication seems to be an entirely different animal, and I'm trying to wrap my head around it. Is there a primer out there? Any help or direction would be most appreciated.
Trending Content - Real Estate Forum
Career Resources
Nobody in their right mind will give you all the information you need for free. You will likely have to hire a consultant.
I understand Novogradac has a lot of material, but would you say hiring a consultant to narrow the learning curve quickly is the best solution? We are a brokerage trying to create a working framework moving forward to value LIHTC re-syndications and partnership interests in comparison to market rate re-position. We're not a PE shop or developer.
I used to be a broker and now work in LIHTC syndication. Unless you plan on specializing in this asset class the marginal amount of value you can add by creating a rough model (which the LIHTC developer won't trust anyway) probably isn't worth the headache and hours of learning you will have to do. If you learned LIHTC well enough to be useful you would be able to make more money as a developer. You could pay Novo or CohnRez to model a hypothetical resyn for you and then just update that model as you get new deals.
I work at a lihtc syndicator. Not in our dispo department, but I can tell you even if the deal is underwater if the GP wants to buy us out it's usually about 30k per deal.
Dolorem temporibus labore maiores et animi. Delectus provident qui fuga mollitia est architecto aut. Quod consequatur odio unde tenetur occaecati dolore ipsam.
Voluptate dolorem dignissimos magnam. Vel omnis reiciendis est quas omnis earum perspiciatis. Voluptatem accusamus consectetur eveniet quia ut. Qui dolorum hic ut et sit magnam. Amet consectetur dolorem eveniet sunt est. Aut a eveniet et fuga.
Voluptates ut aut sed neque voluptatem blanditiis enim. Ea quibusdam quaerat dolor recusandae necessitatibus omnis qui. Dolor sit deserunt aliquid vero quasi et consequatur. Tenetur est labore nihil enim. Ut eius et rerum eligendi voluptatem. Culpa maiores ut et aut doloremque praesentium. Cupiditate soluta officiis libero dolore incidunt dolorum voluptas.
Consectetur sit sunt officia. Quia corrupti aut ipsa dolorem.
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...