Our Strategy
Value Creation Strategy - Illustrative Example
Infinite Equity Capital Creates Substantial Value At The Acquisition of Each Asset
ASSET PURCHASE
Market Value
$13.75 Million
@ 8%
Cap Rate
$13.75 Million
@ 8%
Cap Rate
$3,75MM
Embedded
Value
Embedded
Value
Purchase Price
$10 Million
@ 11%
Cap Rate
$10 Million
@ 11%
Cap Rate
27%
Discount to Market Value
Discount to Market Value
EQUITY VALUE
$3.75 Million
Equity “Cushion”
Equity “Cushion”
25% Equity
$2.5MM
$2.5MM
75% Loan to Cost
Senior Debt
$7.5MM
Senior Debt
$7.5MM
55%
Loan to
Value
Loan to
Value
PRE-REFINANCE
Equity Value
25% Equity (Assuming NO
Value Appreciation)
25% Equity (Assuming NO
Value Appreciation)
Debt
$7.5MM
$7.5MM