Loans associated with this joint venture are positive for you. Here is why:
A capital partner took a 10% first-loss stake in our Jacksonville joint venture loans. This means that any losses are cushioned by 10%, reducing or eliminating losses that would otherwise have been realized by investors.
We have established a local asset management team in Jacksonville. This gives us an advantage to complete renovations and transition loans to the next step in the process.
For LROs that we are able to rent, we can offset the costs of stabilizing the portfolio that would otherwise have reduced investor returns, such as foreclosure costs, repair costs, property taxes, and other working capital needs.