Selection Methodologies

Industry-specific eligibility criteria for real estate deals and investment funds.


The EarlyShares team has decades of specialized expertise in real estate, from loan origination to commercial real estate investing, with nearly $3 billion in transactional volume. We work exclusively with highly respected developers and sponsors and assess each investment against 16 criteria in four channels: People, Property, Potential, and Predictability.

PEOPLE

Who’s developing, managing, or operating the property?

  • Reputable sponsor or developer with track record of above-average returns
  • Deep experience in asset class & property type of offering
  • Senior-level principal serving as ‘point person’ for offering
  • Expertise in syndicating deals

PROPERTY/PROJECT

What are the defining characteristics of the property?

  • Location & demographics
  • Project plans & timeline
  • Zoning & entitlements
  • Environmental factors

Potential

What makes this a compelling investment opportunity?

  • Market overview
  • Property appraisal
  • Capital stack details
  • Desirable IRR/cash-on-cash/interest rate/LTV

Predictability

How is the deal structured?

  • Equity/debt/mezzanine financing
  • Sponsor financial participation (10% minimum)
  • Use of proceeds; repositioning/renovation strategy
  • Cash flow & return projections
* Investing in private ventures involves a high level of risk. EarlyShares does not endorse or guarantee any of the investment opportunities on our platform. It is important to conduct your own due diligence and understand that in any investment opportunity you may lose all or part of your money.

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