Over pricing, and P&I reserves lowering returns

[Ryan Webster]

Hey other sydicators,

Is anyone else having trouble with underwrtting deals and meeting return requirements, with P&I reserves being required by lenders, and sellers unwilling to negociate?

Is anyone currently utilizing a capital stack with subordinate private debt, as well as class A and B shares for LP investors?( ie: class A shares recieve 9%-12% coc and return of capital but do not participate in further upside from appriciation and net proceeds from sale. Class B shares recieve little to no cash flow but fully participate in upside and net proceeds from sale) basically preferred return stock and preferred equity stock.

If so what sources are some sources for subordinate debt, and has the increased leverage helped returns in a meaningful way? How has you inventor network responded to the class a/class b share structure?

Thanks

[Ryan Webster]

@Charles Seaman

Thanks Charles,

Its good to here I'm not alone. We would like to grow are portfolio, but I'm not ready to abandon our conservative underwritting to facilitate the growth.