Why investors can make humongous returns investing in project level financing.
One of the most interesting aspects of investing in a private real estate development deal is the way in which a project gets financed.
There are relatively few dependable sources for capital when a project falls below the “Wall Street” level. More importantly, there becomes a very interesting spread between the relative cost of capital from institutional investors and that of private investors.
This conundrum exist for about 95% of the entrepreneurs that we deal with.
Small and medium size real estate developers and managers regularly and consistently need outside equity.
Savvy investors are able to command high risk-adjusted returns by helping developers finance their projects. I know this, because this is the world that we live in every day.
We have the good fortune of working with established developers and investors across the globe and, having been developers ourselves, we know the situation all too well. This is why we help put together Direct Asset Investment Offering for our customers.