After consulting with dozens of developers over several years, one issue kept coming up again and again: How do you get good capital? We finally decided to do something about it.

After more than a decade of conducting consulting, serving as a strategic advisor to our fellow developers and growing their businesses, we have found one recurring theme running through all my clients: Capital is the lifeblood of a growing business. In an environment in which cash is king, no entrepreneur we have ever met or worked with seems to have had enough of it.

The irony is that the creativity that entrepreneurs typically show seems to fall apart when it comes to the capital raising and formation process. Most people start their search for capital without really understanding the processes, waste a lot of time and resources “lookin’ for love in all the wrong places.

Preer has launched a capital investment division with the aim to help entrepreneurs navigate the often murky waters of finance and explore all of the traditional and nontraditional sources of capital that may be available to them. Our goal is to provide you with pragmatic guidance and capital structure based on years of experience and a view from the trenches.

By joint venturing with our selected clients, our partners are able to move swiftly and strike when deals are ready to be struck with a thorough understanding that the transaction is fully financially underwritten by Preer’s capital arm. This equity partnership also means that 90% of projects are not a good fit. But for the 10% that are, the difference is staggering.

Virtually all capital formation revolves around balancing four critical factors: Risk, Rewards, Control and Capital.

These 4 factors represent the natural tension between the developer (the project partner) and Preer (the capital partner) and they must be balanced in arriving at a mutually acceptable deal structure.

For our project partner, Preer can provide the financial underwriting covering the full capital stack ranging from debt, convertible notes, preferred equity to general equity.

Capital Deployment

  • Senior/Mezzanine

    We understand the importance of having adequate capital during this crucial stage of your project. Our senior and mezzanine funding provides the necessary financial support, enabling you to acquire and hold land while maximizing its potential value. With our expertise and experience in the real estate industry, we can help you structure the funding in a way that suits your specific land banking requirements.

  • Preferred Equity

    When it comes to development projects, having access to the right type of capital can make all the difference. Preer offers preferred equity as a financing option for your development projects. Preferred equity provides you with a unique advantage by combining aspects of debt and equity financing. With preferred equity, you can secure the necessary funding while retaining control over your project's decision-making process.

  • General Equity/Venture Capital

    For development projects that require a more extensive partnership arrangement, this investment option involves sharing both the risks and rewards of the project. By partnering with Preer through a joint venture, you gain access to our extensive network, expertise, and capital resources.. Our team conducts thorough financial underwriting to ensure the viability and profitability of the joint venture projects we undertake.

FAQs

What sets Preer's senior and mezzanine funding for land banking apart from other financing options?

At Preer, our senior and mezzanine funding for land banking stands out from traditional lenders. We bring a developer's perspective to the table, enabling us to understand the dynamic nature of each deal and the inherent risks and opportunities involved in land acquisition and holding. While most lenders focus solely on static valuation, we take a forward-thinking approach. This allows us to provide a comprehensive financing solution that is specifically tailored to your land banking needs. Our commitment to understanding your long-term growth objectives sets us apart and ensures that our capital aligns perfectly with your vision.

How does Preer's preferred equity differ from conventional financing for development projects?

Preer's preferred equity is a departure from conventional financing as we see development projects through the lens of developers ourselves. Unlike traditional lenders who may be risk-averse, we understand the potential value and long-term prospects of your project. By offering preferred equity, we provide a financing option that aligns with your vision and grants you greater control over decision-making. Our willingness to invest in equity sets us apart from others and showcases our commitment to supporting your project's success.

What makes Preer's joint ventures for development projects a preferred choice?

Preer's joint ventures are uniquely advantageous because we are developers at heart. We approach joint ventures with a deep understanding of the risks and opportunities involved in real estate development. While traditional lenders may hesitate to engage in equity partnerships, our perspective enables us to structure joint ventures that share risks and rewards while fostering collaboration. This developer-centric approach sets us apart and ensures that we can provide not only capital but also invaluable expertise and support throughout the project.

How does Preer assist in navigating the complexities of finance and finding alternative capital sources?

At Preer, our background as developers allows us to view finance differently from traditional lenders. We understand that the real estate industry presents unique challenges and opportunities. We go beyond typical lending practices by offering pragmatic guidance and exploring alternative capital sources that others might overlook. Our willingness to consider equity as a viable option sets us apart, giving you access to a broader range of financing solutions and increasing your chances of securing the capital you need for your project's success.

Unlock Your Real Estate Potential with Preer's Capital Investment

Seeking Real Estate Visionaries for Strategic Partnerships. Whether You Need Debt, Preferred Equity, or Joint Venture with General Equity, Submit Your Pitch Today and Let's Power Your Growth Together