Quote: (08-15-2016 05:36 AM)Easy_C Wrote:
So.....is this a REIT? Is the investment securitized?
If you have any public investor materials or a prospectus(which they should for this kind of deal) send it over to me via PM and I will have a look at it.
Quite frankly I have no idea what you are getting into yet. I have done some work analyzing real estate finance before but it is an area that is often extremely difficult even for experienced (non-real estate) finance professionals to follow. The reason why is that many of the financial products have extremely complex debt waterfalls, default conditions, backing, etc. You almost need a lawyer's help to interpret some of these.
Unless we know the exact nature of the financial product involved we can not help you much. Is it securitized? Debt or equity? If debt what is it secured by? If equity what type of equity? Or is it a standard mortgabe backed product? If so is it a CMBS or a RMBS?
Also if you do not immediately understand every term I used without looking it up then you probably should not invest in this without getting some professional help on the matter. We do have a number of people here on the forum with real world capital markets and investing experience.
I am a self-employed lawyer. Granted I don't practice in Real Estate/ My dad has been involved in development including developing subdivisions etc. and has substantial legal experience. Interpreting the contractual provisions isn't the issue. When I see that, between my dad and I we will know quickly if there are unacceptable terms.
My impression was that it's a pretty common financial product. It peaked my interest. I wasn't aware there were large variations within this specific area. When I read the contract I'll have no issue understanding the terms. I obviously wouldn't touch it if the LTV ratio meant little to no equity or if there were any other unacceptable provisions.
Heres an article that seems to be depicting the type of product my friend is describing.
http://www.remonline.com/syndicated-mort...e-caution/
jj90 has explained what it is in his above post. He explained it essentially the same as my friend explained it to me.
I was moreso looking for general experience with these products as opposed to the particular deal I may invest in. I was assuming someone on the forums would have invested in multiple of this specific product via Fortress and other companies.
This is not a real estate investment trust. When I see the paper work I'll know more about it.
I now realize my question was overly vague based on the information I had. I had falsely assumed this was a common product offering with small (although potentially substantial) differences between companies that offer this product.
It would be a minor part of my investment portfolio where if I lost all of my capital I'd be back to where I was within 6 months.
The developer has a spotless track record.