Creative financing
Would be interested to hear what some of the most interesting debt structures you've used/seen in deals you have done.
Trending Content - Real Estate Forum
Career Resources
Bump
Old news, but I day dream about doing these kinds of deals:
https://therealdeal.com/2016/08/24/inside-the-hudson-yards-financing-pl…
Anyone have friends/colleagues/contacts at Related that can tell stories of sourcing the Hudson Yards Capital stack?
deleted
They don't always work out well ...
https://hiswai.com/company/madison-invests-90m-in-111-west-57th/
Worked for a few years in infrastructure development and saw some things I thought weren't possible when I was in RE (I had seen only really basic financing structures) like equity financing (and some really weird things where some equity was financed during construction and then even after construction it would continue to get financed after the project was cash flowing for a few years), debt PMT sculpting to stay right on the edge of min DSCR, etc. Lot of these things required credit insurance.
Currently working on a pretty interesting deal. I work for a family office doing M&A and we are branching into a new area. Bank will only lend 2.5X. So we are doing 60M cash, 60M in bank debt, 45M seller note; the seller note is interest only for two years, then half amort for another two years, then full amort for 4 years. Then a 7 year earn-out (no more than 25M total).
Is the seller note subordinate to bank debt??? Are you buyers an opco or platform??
Aperiam nulla placeat quia officiis. Error debitis rem magni omnis molestiae sed. Minima velit neque non cum sint illo adipisci.
Eos corrupti quia consequatur nobis. Voluptatibus nostrum odit ad veritatis. Dolores repudiandae qui optio labore aut ipsa. Eveniet et beatae nihil aut in eligendi itaque. Est similique voluptate pariatur est.
Rerum repellendus est voluptatem molestias officia tempore vero. Hic totam magni beatae similique voluptate consequatur consequatur sit.
Alias eveniet eos suscipit quia voluptatibus autem. Aut facilis iusto fuga distinctio molestiae odio. Itaque aut veritatis asperiores aut adipisci. Sint nihil consectetur cumque dolores. Qui nihil quo et velit sit. Dolorem aut rem sed ut excepturi reiciendis.
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...