How can preferred equity deals help developers navigate the current real estate market challenges while offering attractive returns to investors?
In episode 711, host Taylor Loht welcomes Darin Davis, a real estate investor who has successfully executed transactions approaching $1 billion through his investment firms. Darin shares his perspective on the current real estate market and how preferred equity deals can benefit both developers and investors. He talks about the challenges developers face in the current market, including rising interest rates, falling valuations, and reduced loan proceeds. Darin explains how preferred equity can help developers bridge the gap and complete their projects while offering investors attractive returns with a defined timeframe and a safer position in the capital stack. Darin emphasizes the importance of underwriting, and being focused on class A assets in prime locations. He also shares his perspective on the current market compared to previous recessions and offers advice for young people looking to build a strong financial foundation.
[00:00 - 05:40] Challenges Facing Developers in the Current Market
[05:41 - 13:03] Navigating Preferred Equity Deals
[13:04 - 20:50] Focusing on Class A Assets in Prime Locations
[20:51 - 24:09] Comparing the Current Market to Previous Recessions
[24:10 - 32:41] Question Round
Quotes:
"I would encourage young people to really focus on who and what you want to be early in your life because what happens in those first 10 years of your life for most everybody will determine what happens the rest of your life." - Darin Davis
“Find the one thing that you're good at and just go." - Darin Davis
Connect with Darin Davis:
Website: https://clubcapital.co/
Apply to Invest with Taylor at www.investwithtaylor.com
Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com
Please leave a review and help others escape Wall Street and build wealth on Main Street!
Podchaser is the ultimate destination for podcast data, search, and discovery. Learn More