Funding Services

Funding Parameters and Terms Overview

JID Investments (JIDI) offers equity and private money funding on residential, mixed-use and commercial opportunities in the Washington DC Metropolitan, South-Atlantic and Mid-Atlantic real estate markets. See our Funding Services Process and Equity Terms & Parameters documents for more details.

We also offer fully funded and joint venture funding services which is detailed in our JIDI Funding Parameters document (available upon request).

JIDI’s Targeted Parameters:  Returns accrue annually and can defer.

Development and New Construction Projects:

• 12% Pref
• Total Project Return of 24 – 26% (preferred rate and profit split(s) from waterfall)
• Timeline:  1.5 – 5 years
• Primary Exit:  Sale, Refinance, Recapitalization, or Buyout
• If offered option to remain in project after primary exit, for rental income and appreciation:
• ownership percentage based on equity remaining in follow-on investment and initial investment profits (development/new construction returns), with new terms for the stabilized phase agreed to (i.e., amended, or new Operating Agreement)
• Minimum 1.5% due diligence and overhead fee, not inclusive of waterfall and paid upon successful closing

Opportunity Zone (OZ) and Value-Add Residential, Commercial, and/or Mixed-Use Projects:

• 10% Pref
• Total Project Return up to 20% (preferred rate and 75/25 pro-rata profit split(s) from waterfall in favor of JIDI)
• Total Project Return above 20% (preferred rate and 75/25 pro-rata profit split(s) from waterfall in favor of Sponsor/General Partner)
• Timeline:  OZ (10 years minimum), Value-Add (3-5 years)
• Primary Exit:  Sale, Refinance, Recapitalization, or Buyout
• If offered option to remain in project after primary exit, for rental income and appreciation:

ownership percentage based on equity remaining in follow-on investment and initial investment profits (development/new construction returns), with new terms for the stabilized phase agreed to (i.e., amended, or new Operating Agreement)

• Minimum 1.5% due diligence and overhead fee, not inclusive of waterfall and paid upon successful closing

Operating Agreement:

• Name of entity buying the property
• No mandatory capital calls or recourse for our Class Member
• Distribution schedule to include priority of payouts to members and waterfall breakdown
• Clear description on payment of preferred return(s). return of capital, interest rates (as applicable) and profits. If there are a series of distributions from a refinance, recapitalization, or partial sale paying off the preferred return(s) and portion of return of capital, how does this impact follow-on returns (can be provided as part of Operating Agreement or as an addendum/figure). Our entity’s name with Class Member, ownership percentage, and dollar amount invested. Redemption/buyout section (if applicable) if there is a follow-on investment from the initial investment. Hold harmless/ indemnification of liability on operational, managerial, or other liabilities
• Who is the other Co-GP or LP members/owners

Please ensure your Offering Materials (Investor Deck and/or Proforma) shows a clear breakdown of all Member Preferred and targeted IRRs, NET dollar invested in versus NET dollar returned out, and equity multiple for the specified project parameters.