Targets
Targets are determined by the real estate sponsor’s financial analysis and are not a guarantee of performance. The target returns listed on the offering page are investor-level returns. To gain a better understanding of the risks involved, please consult your advisors.
Internal Rate of Return (IRR)The target annualized effective compounded return rate. Includes both the cashflow during the hold of the asset and the appreciation from the sale of the property. Equity MultipleThe total amount of capital returned divided by the total equity invested. For example: $200,000 total return / $100,000 invested = 2.0 Equity Multiple. Hold PeriodThe target hold period for the investment opportunity. Ultimately, the real estate sponsor has discretion on when the right time to exit the investment is and it should be the investor’s view that they are in the investment for the duration of the hold period. Year 1 Cash on CashThe targeted amount of distributions made to investors in Year One divided by the initial investment amount. Stabilized Cash on CashThe targeted amount of distributions you may receive when the property reaches stabilization. A stabilized property is one where major rehabilitations have been completed, and both the occupancy rate and rent rate are near the targeted overall market rate. First DistributionThe target date for when you will receive your first cash distribution from the investment. Distribution FrequencyHow often the sponsor is targeting to make distributions to the investor. Distribution Frequency is typically on either a monthly or quarterly basis and determined by the real estate sponsor. |
Additional Terms
Minimum InvestmentThis is the minimum commitment amount that the sponsor will accept. Co-InvestmentPercentage of the total equity invested in the project coming from the real estate sponsor. Asset ProfileThe risk-reward profile of the investment. Risk profiles are split into four categories (Core, Core Plus, Value Add, Opportunistic). To learn more about these risk profiles check out the Beginner’s Guide To Real Estate Investing. Preferred ReturnThe percentage return that will go to investors prior to the sponsor receiving a return. Also known as ‘pref’. Investor Profit ShareThe profit split that will go to the investor after the preferred return is achieved. Certain structures will have a return to the Sponsor prior to investor receiving their profit share. For more information be sure to review the Financials Tab. Loan-to-ValueThe percentage of the purchase price of the asset being funded by the loan balance at the close of escrow. Current OccupancyThe percentage of rentable units/square footage currently occupied by tenants. |
Other
See PPMA sponsor may be prevented from displaying certain metrics on the front facing deal cards. To view the metrics for these opportunities, head to the documents tab and download the PPM. N/RNot reported. N/ANot applicable. |
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