Investment Criteria
50+ Multifamily Units
Stable or Emerging Market
Hidden Potential Value
Region & State Dimensional Invests
Distressed With Missed Income Potential
Relatively High Drive Traffic
Good or Improving Walkability Scores
Dimensional Capital Partners looks for good deals with high returns, and low risks.
Return on Investment Definitions
PREFERRED RETURN
The distribution of cash flow can provide a preferred return of a percentage to investors. This means before any profit is split investors are paid the Preferred Return percent first. It is possible some properties will not implement a preferred return. Please consult your Investor Relations Advisor for details.
EQUITY SPLIT
Investors receive the greater of the split which can be 60/40 up to 80/20. The split refers to multiple sources of return, however all sources usually receive the same split. The first split is from the quarterly net revenue taken after Preferred Return is paid out. The second split is upon sale. There can also be a combination or Waterfall splits.
WATERFALL
A Waterfall Return is the level of Preferred Return & Equity Split paid out to the investor depending on amount and time investment was made. Higher returns might be paid if the funds are needed very early or if raising funds has stalled and not reached certain milestones, also called hurdles.
CAP RATE
The Capitalization Rate goal will be different for every market and property. However, the percentage the group will target will be B - C Class Properties. Cap Rate is the return on the investment if it was purchased free & clear.
EQUITY MULTIPLE
This return is the ratio of money invested compared to the sum of all the money returned. This number can fluctuate depending on the risk, location, current condition of the property.
IRR
The Internal Rate of Return (IRR) goal changes with the economy. The IRR percentage can be understood as the return averaged over time in the investment. The same amount over a longer period of time creates a smaller IRR.