How do Investors receive Quick Liquidity for real estate partnerships minority equity interests?

By |1 min read|Published On: March 18th, 2015|

How do Investors receive Quick Liquidity for real estate partnerships minority equity interests?

One common investment strategy in commercial real estate is to bring multiple real estate investors together to pool their capital in order to purchase a property that individually they could not afford. This provides investors with limited capital greater leverage by using their funds to invest in larger properties with higher returns. In an example, ten real estate investors want to buy a commercial building for $1,000,000. If they each invest $100,000 they can purchase that property and each investor would receive a 10% minority interest position in the partnership.

Real Estate Partnership

While pooling funds to purchase larger and more desirable properties has many benefits, it also has many downfalls. One of the major problems that minority interest owners face is illiquidity. Since the authority to sell the investment property is usually left to the majority members or managing members, the minority interest investors face limited routes when financial problems arise and they need access to quick capital. The managing members are legally bound to do what is best for the partnership’s investment as a whole, which is often to not sell the investment property. This prevents minority interest investors from selling their shares at fair market value & getting Liquidity for real estate partnerships minority equity.

Real Estate InvestorsMinority interest owners do however have the ability to sell their minority position in the real estate partnership through the secondary market, or any outside real estate investor.

We are direct buyers of the minority interest in real estate partnerships. When cash-flow problems arise and people need Liquidity for real estate partnerships minority equity, we provide a reliable exit strategy.

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