Seizing Opportunities in a Changing Real Estate Landscape
The real estate market underwent a transformation as the Federal Reserve initiated a series of rapid interest rate hikes. These shifts, combined with overpriced assets and heavily leveraged developments often reliant on short-term debt structures, have given rise to an emerging buying opportunity.
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Favorable Market Conditions
A staggering $447.42 billions of commercial mortgages are set to mature this years, with an additional $486.24 billion soon to follow, primarily held by banks. However, traditional lenders are increasingly reducing leverage ratios or halting lending altogether due to rising interest rates, creating potential investment opportunities in a changing market environment.
Unique Investment Opportunities
The fallout from the pandemic, historically low borrowing rates, and the prevalence of short-term interest-only borrowing have all contributed to the emergence of unique investment opportunities. Combined with strategic refinancing, these conditions create a compelling landscape for potential investors looking to maximize returns and minimize risk.
Asset Strategy:
Ideal asset size ranges between $5 million and $50 million, providing both scalability and opportunities for inefficiencies in ownership that can still yield significant value.
- Primary Target markets: Texas, Florida, and Kansas City.
- Target asset types: LIHTC and Affordable Programs, Multifamily, industrial, and retail properties, medical offices
- Existing assets with cashflow and calculable upside, new capital, redevelopment, or management operations.
- Collaborating with 501(c)(3) organizations to expand their real estate assets in support of their mission.
Choose Your Investment Path with PETRA
PETRA Protect:
The PETRA Protect “buy and hold” program is designed to outpace annuities and. Other retirement products. This allows you to protect your nest egg while receiving the maximum income needed to maintain your desired lifestyle.
What is it : Designed to outplace annuities and other retirement products to provide maximum income
Who is it for : Pre-retirees, retirees, and/or their retirement accounts looking for maximum incomes without the ups and downs of direct real estate ownership
Minimum Equity /investment : $100,000
Return Structure : Fixed income stream of 6-7% without principal reduction as annuity would
Timeline for Contribution : Open Anytime
IRR : 6-7%
Sourced From IRA/401k : Yes
PETRA Tailored Growth:
PETRA Tailored Growth can maximize and grow your capital with no set time limit and at a higher rate than traditional stock market. We focus on joint venture investment in fast growing Midwest cities and the sunbelt.
What is it : Professionally managed portfolio of value-add residential multifamily and commercial assets that grants investment diversification
Who is it for : People looking to grow capital and receive beneficial tax pass throughs
Minimum Equity /investment : $100,000
Return Structure : Investor receives 100% return on initial investment and splits balance with PETRA
Timeline for Contribution : Open Anytime
IRR : 12-15%
Sourced From IRA/401k : Yes
PETRA Syndication:
Combo of both PETRA Protect and Tailored Growth for those wanting the benefits of direct real estate owner show with some cash flow.
What is it : Individual deal with specific return parameters
Who is it for : People looking for real estate diversification and enough capital to invest in multiple deals
Minimum Equity /investment : $100,000
Return Structure : Varies by project
Timeline for Contribution : 1-2 deals/quarter
IRR : 10-20% / 4-7%
Sourced From IRA/401k : Yes