HOW INVESTORS MAKE MONEY
Cash flow from regular operations is distributed to investors on a monthly or quarterly basis, or during an equity event such as a refinance or at disposition.
Commercial real estate is valued via the Net Operating Income (NOI) of the property. Through this method of valuation, we can force appreciation through precise value add implementation strategies.
Revenue from regular operations pays down the debt obligation on the property, which in turn builds equity for investors.
Investors benefit from tax benefits such as accelerate depreciation and cost segregation, possible 1031s in to new projects, and tax free return of initial equity.