Nuances of Financing for Real Estate Partnerships

So, when it comes to finance, I'd say it's a little different than your normal single family house. I wouldn't say it's easier or more difficult. I think it's, if you try to do it by yourself, it's a lot more difficult. But again, with that team approach, what you have to do is go to lenders who specialize in that specific asset type. The loans are much larger. They could be anywhere from 10 to 20 million dollars. So, you know, the underwriting is a lot more strict. So as long as you have somebody on your team who understands how the lenders would underwrite and has underwritten the deal to exceed what the lenders would be looking for, and you have the sponsors who have the financial backing to be able to guarantee the loan, because even though these are what's known as non- recourse loans, the lenders still want some some type of guarantee. So those sponsors, generally have either the wherewithal to be the guarantor or bring in folks who would guarantee the loan. So, again, it's a team sport, as they say and once you have done a couple of these loans and you have relationships with the lenders, it gets easier. So, you know, now we have a set of lenders that we work with and they know us. They know what we've done in the past. They know what our, you know, that we've been able to turn around other assets, make them perform well, so it gets easier as you as you start heading down this path.