The essential elements to attract a mezzanine loan or preferred equity investment for your real estate project is knowledge of the market you’re in, the product you serve, and the value you have to the market.
You are, in reality, taking on a financial partner when you enter into an equity investors’ realm.
Most equity investors specialize in certain asset classes. Therefore, you need to connect to that investor segment to which your project is most suited. You also have to program your sponsor profile to achieve the maximum success. Be an expert in the real estate segment you operate in.
Sometimes I am asked what the difference is from borrowing from friends and family rather than from an equity investor. My answer is always, “You have the friend or family member to comfort you if the deal goes bad, provided you didn’t borrow from them.”
For more information about Dominion and its real estate mortgage loans, visit www.dominfin.com.
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