Preferred Equity: Better Risk-Adjusted-Returns Are Perfect For Uncerta

Episode Summary

Preferred Equity is a unique strategy that is typically only available to those in the institutional world or in opportunities where you're investing with a much lower return percentage. In this episode, Steven will talk about the different types of preferred equity, what that looks like, what the benefit is, when it makes sense to invest in preferred equity and why and when it makes sense to focus on common equity.

Key Takeaways

1. Preferred equity is a unique hybrid investment strategy that combines debt and equity and provides downside protection while providing a preferred return to investors.
2. It's the first time in over a decade that it's made sense to focus on the preservation of capital over exclusively focused on appreciation.
3. It's important to look for opportunities that have a good risk-adjusted return to get that same place from a cash flow perspective.
4. We're in a current market where the economy overall is performing quite well. The real problem that we're dealing with today is that we've put a lot of money into it and we're seeing inflation.

Resources Mentioned

Learn more about Preferred Equity and Anti-Inflation Strategies at https://vonfinch.com/pref

Interested in connecting with other like-minded individuals? Then join our VonFinch Private Capital Network. Learn more at http://www.vonfinch.com/invest.

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