Nectar allows you to own a diversified pool of mezzanine debt and preferred equity to top-performing real estate operators with low leverage, cash flowing properties.
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Own a piece of all of our notes and receive a quarterly distribution.
Invest directly into the notes of your choice to earn a higher yield and match your specific goals.
We primarily focus on stabilized multifamily. We will also do low leverage deals in stabilized single family, self storage, hospitality, and retail.
Our capital would typically be considered “working capital”. However, it can be used in a variety of ways, as long as it is a business use case. Common use cases we see:
- Minor to moderate renovations and upgrades
- Pursuit costs for acquisition opportunities
- Purchasing rate caps
- Replacing LP equity on an acquisition
Our sponsors are experienced real estate owners and operators. They are paying us an objectively high rate because we are providing them a very valuable service: access to fast, flexible capital. We get them the liquidity they need without them having to spend months raising from LPs, doing a capital call, or refinancing their entire senior loan (which is typically more expensive than getting funding from Nectar).
Sometimes. Some properties were financed years ago, for example, a deal with a mortgage in 2016, that appraisal wasn’t as relevant so we used an AVM valuation model. We always request a 3rd party appraisal if there is one.
The Cash Flow Coverage Ratio is AFTER mortgage, so free cashflow business is making after it pays EVERYthing, including mortgage.
We will stay away from them or look at max rate or max payment and that’s what we are underwriting. We don’t know what rates will do, but higher for longer is what our focus is.
We have a 3rd party appraiser that does provide and re-appraise. There’s one we use for SFR and one for MF. They generate an AVM and we find for anything older than 2 or 3 years they are re-appraised.
Every financing is full recourse to the managing sponsor. We do not cross collateralize properties in separate entities. We attach to an entity, underwrite that entity, guarantee from that entity. We connect to a human person and the entity that owns the property, and we don’t cross collateralize.
