Funding Services Process & Parameter Documents

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Funding Services Process

Equity Terms & Parameters

JID Funding Services 1000x553 (1)

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:

  • We target $1M – $5M per project raise as an LP or Co-GP
  • Targeted Markets are Mid-Atlantic, DC/VA/MD, and Southeast
  • Our strategy focuses on spending time Sponsor Partners to ensure we are a good fit before looking at some of their deals, but happy to do that concurrently if a prospective project is ready for funding
  • Parameters/terms (overview):
    • Targets for Opportunity Zone (OZ) and multifamily hold projects:
      • Cashflow of 8% or better but at least an 8% PREF
      • IRRs at 15% – 20%+ (OZ) and 18 – 25% (MF)
      • OZ (10 years minimum), MF (3-5 years)
      • MF only, options to remain in for the long-term with portion of equity for further cashflow and ownership percentages
      • Minimum of 1.5% fee for JID Investments not inclusive of waterfall and paid at closing
    • Targets for non-OZ development/new construction projects:
      • IRRs: 28 – 32% deferred (waterfall which includes a preferred rate with profit splits)
      • Timeline: 18-60 months
      • If remaining in the project after completion, options to remain for the long-term with portion of equity for further cashflow and ownership percentages.  This would be separate from the development/new construction returns, after development/new construction phase’s equity and returns were collected/finalized and new terms for the stabilized phase agreed to
      • Minimum of 1.5% fee for JID Investments not inclusive of waterfall and paid upon successful closing

Operating Agreement:

    • Most of the OA language is boiler plate.  The big things we look for are:
      • Name of entity buying the property
      • No mandatory capital calls or recourse for our Class Member
      • Review of the Distribution to include the priority (schedule) for payouts to members and waterfall breakdown?
        • On the Waterfall, clear understanding of return of capital versus profits.  If there’s a refinance or sales that pay off return of capital, understanding how that impacts the follow-on returns (are they lower)
        • We find a spreadsheet or PDF showing NET dollar-in versus dollar out, IRRs and equity multiple is very helpful when breaking out the waterfall and return structure.  Would be something we’d request when reviewing sponsor/developer deals for partnership
      • Redemption/buyout section (if applicable)
      • Hold harmless/ indemnification of liability on operational, managerial or other liabilities
      • Understanding of who are other Co-GP or LP member owners

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