All Forum Posts by: Adam Silverman

@Brian Burke.

Thank you for the thoughtful response!

I have one follow up question if you don’t mind.

A deal with no cash flow and no preferred return, what would that situation look like?

The only things I could think would be new construction or buying underperforming assets that need some sort of significant turnaround. Essentially deals where the existing cash flow of the property would not be able to support immediate distributable cash flow. Are there other scenarios, am I getting something wrong?

I’m trying to better understand general investor mindset (I realize all investors are different with their goals).

This is an open-ended question given the differing types of markets and diversity of assets.

If you’re raising money from a pool of investors, what is the lowest cash-on-cash acceptable preferred of return that would be acceptable. Let’s say investors are contributing 25k - 250k for deals that are raising anywhere between 300k - 1.75m.

Example: if you put a deal together where the short term cash-on-cash return is 3%, would most investors balk or be satisfied? What do you think the lowest acceptable cash-on-cash return is for investors to be willing to assume the risk to invest?