Targets are determined by the real estate sponsor’s financial analysis and are not a guarantee of performance. To gain a better understanding of the risks involved, please consult your advisors.
Internal Rate of Return (IRR)
The target annualized effective compounded return rate. Includes both the cashflow during the hold of the asset and the appreciation from the sale of the property.
The total amount of capital returned divided by the total equity invested. For example: $200,000 total return / $100,000 invested = 2.0 Equity Multiple.
The target hold period for the investment opportunity. Ultimately, the real estate sponsor has discretion on when the right time to exit the investment is and it should be the investor’s view that they are in the investment for the duration of the hold period.
Year 1 Cash on Cash
The targeted amount of distributions made to investors in Year One divided by the initial investment amount.
Stabilized Cash on Cash
The targeted amount of distributions you may receive when the property reaches stabilization. A stabilized property is one where major rehabilitations have been completed, and both the occupancy rate and rent rate are near the targeted overall market rate.
The target date for when you will receive your first cash distribution from the investment.
How often the sponsor is targeting to make distributions to the investor. Distribution Frequency is typically on either a monthly or quarterly basis and determined by the real estate sponsor.
This is the minimum commitment amount that the sponsor will accept.
Percentage of the total equity invested in the project coming from the real estate sponsor.
The risk-reward profile of the investment. Risk profiles are split into four categories (Core, Core Plus, Value Add, Opportunistic). To learn more about these risk profiles check out the Beginner’s Guide To Real Estate Investing.
The percentage return that will go to investors prior to the sponsor receiving a return. Also known as ‘pref’.
Investor Profit Share
The profit split that will go to the investor after the preferred return is achieved. Certain structures will have a return to the Sponsor prior to investor receiving their profit share. For more information be sure to review the Financials Tab.
The percentage of the overall property value that is being being financed using debt.
The percentage of rentable units/square footage currently occupied by tenants.
A sponsor may be prevented from displaying certain metrics on the front facing deal cards. To view the metrics for these opportunities, head to the documents tab and download the PPM.