Financing Strategies
We intend to pay particular attention to the financing
strategy for each of our properties to insure that:
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the financing term is compatible with the property’s exit strategy,
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the financing structure compatible with the property’s capital improvement
plan,
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the financing takes advantage of locking in low interest rates at the
appropriate point of the economic cycle, and
-
the amount of leverage is conservatively measured against each property’s
operating cash flow prospects.
We may seek to acquire additional properties in joint ventures with
institutional investors. The advantage of this strategy is to increase the
return on our investment by earning additional income from managing the assets
held by the joint venture, and also to gain additional diversification of our
capital by investing in a larger number of properties, although through a
smaller investment in each property. We believe the quality control and due
diligence required for entering into joint ventures with institutional capital
is consistent with the historical operating standards of our affiliates.
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