Equity & Debt: A Strategic Approach
to Real Estate Investment Management
Balancing Risk, Return, and Liquidity to Deliver Consistent Performance in Real Estate
At xEquity Group, we strategically invest across both equity and debt to optimize outcomes for our investors and projects.
At xEquity Group, we take a dual approach to investing - balancing equity and debt across the capital stack - to provide flexibility, stability, and optimized returns.
Capital Stack Diversification:
Optimizing Equity and Debt
Equity Investments
🎯 FOCUS
- Developing attainable, urban-core multifamily housing (70-150 units).
📝 CRITERIA
- Market Focus: Dallas and Tampa Bay.
- Targeted Returns: 20-30% annually, with a 7% preferred return and 60% profit split thereafter.
- Risk Profile: Low to moderate, backed by robust risk management and prime locations.
- Liquidity: 2-4 years, depending on project lifecycle.
🔄 APPROACH
- We create high-demand housing in urban cores, enhancing communities while delivering superior returns for our investors.
🎯 FOCUS
- Acquiring and enhancing value in mid-market multifamily properties.
📝 CRITERIA
- Market Focus: Sunbelt Region (AZ, TX, FL, GA, NC, SC, AL).
- Targeted Returns: 15-18% annually, with an 8% preferred return and 60% profit split thereafter.
- Risk Profile: Moderate, balanced by asset quality and strong rental demand.
- Liquidity: 2-4 years, based on asset performance and exit strategy.
🔄 APPROACH
- We reposition underperforming assets through strategic renovations and operational improvements, driving value creation for our investors.
Debt Investments
🎯 FOCUS
- Short-term financing for single-family rental (SFR) home flippers and small developers.
📝 CRITERIA
- Loan Range: $250,000 to $5 million.
- Targeted Returns: Fixed interest yield of 8-10% annually.
- Risk Profile: Very low, secured by first liens and personal guarantees.
- Liquidity: 6-12 months, with a 90-day notice for redemption offered.
🔄 APPROACH
- We provide efficient and flexible financing to residential developers, ensuring liquidity and predictable returns for our investors.
🎯 FOCUS
- Loans to mid-market commercial property acquisitions and improvement projects.
📝 CRITERIA
- Loan Range: $500,000 to $20 million.
- Targeted Returns: Fixed interest yield of 12-15% annually.
- Risk Profile: Low to moderate, secured by commercial assets and supported by equity pledges or personal guarantees.
- Liquidity: 12-24 months, with possible extensions or early payoffs.
🔄 APPROACH
- Our debt financing supports commercial real estate projects, generating consistent cash flows and reducing risk for investors.
The Three Pillars of Investing
Our Pillars: Balancing Risk, Return, and Liquidity
Risk
We manage risk through diversification, disciplined underwriting, and operational oversight.
Return
Our investments are structured to deliver competitive returns tailored to investor objectives.
Liquidity
Our fund structures are designed to provide investors with liquidity options while balancing long-term growth.
Why Our Dual Strategy Works?
Alignment with Market Trends: Focused on attainable housing and mid-market properties where demand remains strong.
Diversification: Investments across both equity and debt mitigate risk and create steady cash flow.
Expertise: Deep industry knowledge and a hands-on approach to development and lending.
Flexibility: Ability to adapt quickly to changing market conditions by leveraging both sides of the capital stack.
The Three Pillars of Investing
Our Pillars: Balancing Risk, Return, and Liquidity
Underwriting
We analyze every deal rigorously
to ensure alignment with our
investment goals
Execution
Hands-on involvement in
development and oversight ensures projects are delivered successfully.
Transparency
We provide clear and consistent
reporting to keep investors informed.
