All Forum Posts by: Jared Carpenter

@Brian Burke

Brilliant and extremely well put together response, thank you.

A few questions/clarifications:

• I have heard the sponsor referred to the one who sponsors the debt for one who does not have the resume a lender is looking for. In your write up, you are referring to the sponsor as the one who has found, acquired and manages the opportunity correct?
• Typically do you see Return of Capital pari passu before the first preferred return?  Would it be pari passu if there was an unequal investment by the sponsor (or the "co-invest" is not equal)? (I know later on you said its per the operating agreement and can happen at set times through out the hold)
• Regarding the look back provision, that has more to do with modeling out the hold period and making sure it matches with your proposed return/splits to the investors?
• What is an example of a catch-up? Would the sponsor build a catch-up predicated upon achieving specific returns through management and operations? How does a sponsor justify a catch-up?
• How is the catch-up different than the promote?
• How do you present this? Separately as a term sheet or do you build it into the Investment Memorandum?

Thank you Brian. 

Good evening BP World,

I was hoping that through your collective responses and examples, we as a community could learn more about the common real estate waterfall components.

In layman's terms, could a few of you kindly explain:

1. The return hurdle

2. The preferred return

- who gets the preferred return?

- is the preferred return cumulative?

- is the preferred return typically compounded?

3. The lookback provision

4. The catchup provision

5. When does return of capital typically occur?

6. What is a promote, how does it work, and at what stage for different execution strategies does it make sense to implement?

7. Do you present this in your Investment Memorandum or do you need to write out an owner's agreement?

Many, many, many thanks!

@Kyle R. your first was an 80 unit? 

can you tell me a little bit about that? the story behind it, did you partner up, value add or bought for in-place yield? what market? do you still own it? 

Thanks!

@Curtis Rouse Jr

Hi Curtis, would you be willing to share your waterfall?

@Lauren Dwyer

Hi Lauren, welcome. So you currently work in the LIHTC space. Would you be look to acquire Section 42 assets?

@Michael Trueba

where is the property you are looking at?

Thanks Kyle.

Apologies, however what do you mean by you "turned around" a property?

Hello Community,

Do any developers on here have experience going through any recent or historical Utah, Arizona or Nevada QAP's (qualified allocation plans) for residential rental buildings?

If not, does anyone have any contacts from their day-to-day that operate in the LIHTC development space in any state across the country?

Many thanks in advance.

Hello Community,

Do any developers on here have experience going through any recent or historical Utah, Arizona or Nevada QAP's (qualified allocation plans) for residential rental buildings?

If not, does anyone have any contacts from their day-to-day that operate in the LIHTC development space in any state across the country?

Many thanks in advance.

@Grant Rothenburger

are you working with Joe Fairless?