Deal Structure

Create property deal structures using legal entities and vehicles with differing forms of ownership, capital stacks, acquisition, and management methods.

Real Estate deal structure has a life of its own. Deals come in all shapes and sizes. In the 2010s the Texas A&M University college community saw multiple student living apartment units built using low-income tax credits. The use of tax credits to offset the developer's cost is but one way to fund a development deal. Deal structure helps to determine not only taxation of the investor and developer, but deal structure also lays out who's liability financially and legally within any given development program. 

During my time in the Land & Property Development program my focus was on raising capital to reposition distressed and opportunistic commercial assets. The way I structured the financial aspects of these deals is by requiring my firm to put 5% of the equity into the deal, while raising 25% of the equity required to secure an acquisition and development loan.  In this structure my investment partners are Limited Partners of a Limited Partnership while my organization is an LLC and named as General Partner of the Limited Partnership. 

I discuss the ownership entity on page 7-8 of the report below, and summarize deal financing on page 11.