GP manages and assumes 100% liability while LP(s) only risk initial capitol and are not involved in day-to-day operation.

Herb Bleacher of Black Knight Financial (Formerly LPS) said; “While first mortgages are almost half the levels as one year ago, total home equity loans have increased by 70%”.

If they flooded the market with all their properties, this would drive prices even lower to stimulate demand.

Higher mortgage rates could keep buyers from coming back into the market and could bring prices down even more.On the plus side, lower short-term rates should stimulate the economy and hopefully keep us out of a recession and keep us from losing jobs, which would be terrible for housing.It will be interesting to see how it all plays out.

Will recapitalizing the project with new financing buy anything of substance with a new cash investment from the LPs?

We have already accounted for principal dilution in this scenario and all of the principals know the rules of engagement and should be fine with the arrangement if we drag in additional LPs.

1) GP will get class A for his equity contributions with all applicable terms as all other LPs.

I am having a very interesting discussion with some folks I know about the JV versus regulation D private placement construct for capitalizing SFR development deals. One of the things that repeatedly comes up with po...

Get a FC Radar account.If you don't want to pay for one, and the properties are in LA/OC/Riverside, get an LPS account (free).

Clear Capital, LRES, LPS, Core Logic are some of the big guys.