Alternative Financing Models: Cherry Lawn

Finding capital for a new real estate operator can be a challenge—particularly in today’s market. Real estate investors are traditionally risk-averse, and lenders are hesitant to put too much time or money into a new concept.

But a new generation of models are emerging to finance upstart real estate companies. We’ve previously covered accelerators like ReSeed as well as OpCo-PropCo models, and we’re bullish on concepts like co-GP financing too.

And today we’re going to dig into an entirely different funding model: a new private capital firm called Cherry Lawn has developed a novel debt instrument tailored to upstart real estate companies and operators that may have previously chosen to raise venture capital. Specifically, we’ll tackle:

• New and traditional paths to fund real estate operators and concepts;
• Cherry Lawn’s origins and model;
• Example deal structures;
• What this means for the real estate market.