An executive in the real estate sector, Evan Seiden, FL, leads Relentless Capital, LLC. Previously, Evan Seiden, FL, sought opportunities for Lone Star Funds as manager of real estate investments. He participated in more than $1 billion dollars in commercial real estate debt and equity acquisitions in the past decade.
When a company needs capital, there are two main funding options – contribute/raise Equity capital or obtain debt. Debt funds an expansion or acquisition of real property without diluting ownership control. Also, interest only debt service (interest loan payments) are tax deductible. Equity, when provided by investors, generally incurs a preferred return whereby investors receive their money back plus a set return before the operating partner receives a share of profits and dilutes one’s ownership percentage.
Entrepreneurs often refrain from financing growth through debt. However, industry insiders point out it is not the same a maxing out personal credit cards. Additionally, debt financing offers distinctive benefits such as tax benefits, an ability to expand without giving up ownership and retaining full management decision making control.
Evan Seiden 