Investor FAQ

What is HUD 221(d)(4) financing?

How does HUD Section 8 work for investors?

What is the difference between 9% and 4% LIHTC?

Can I layer multiple HUD programs on one project?

What is 90% LTV financing and why is it important?

What IRR can I expect from HUD-funded projects?

How do tax credits generate investor returns?

What is the typical cash-on-cash return in year one?

How stable are the cash flows from Section 8 properties?

What happens to my investment after the 10-year tax credit period?

What are the compliance requirements for LIHTC projects?

What is the risk profile of HUD-funded development?

What happens if a project doesn't lease up as projected?

What due diligence does Prime Meridian perform?

What is the typical hold period for investments?

What is the minimum investment amount?

What qualifications do I need to invest?

How long does the investment process take?

What documentation will I receive?

Can I co-invest with other institutional investors?

How are tax credits passed through to investors?

What tax documentation will I receive?

Can I use depreciation deductions from the project?

What is the difference between tax credits and tax deductions?

Are there any recapture provisions I should know about?

What is Prime Meridian's track record?

How does Prime Meridian select development partners?

What is the typical project timeline?

How often will I receive performance reports?

What is the exit strategy for my investment?