How to find a money partner for this deal

Question

I’m reaching out because we are starting our capital partner selection phase for an exclusive land banking opportunity one block west of the San Antonio CBD that may align closely with your investment activity in Texas multifamily and infill development. I am specifically looking for a money partner to support this purchase and would like some advice on how to approach investors. Any advice?

KEY HIGHLIGHTS

• 0.896-acre infill site (39,025 SF) under contract at $1.4M—$470k (25%) below the May 2025 MAI appraisal.
• $300k down + 5% seller financing + existing $42k annual office income keeps net carry extremely low.
• Three street frontages (Frio, Leona, San Fernando) / Outside floodplain (FEMA Zone X)
• Clean Phase I Environmental (no RECs)
• Historic overlay confirmed mapping error – not an obstacle for demolition

STRATEGIC LOCATION DRIVERS

Adjacent to UTSA Downtown Campus expansion (10,000+ students planned)
Spurs arena / Mission stadium development corridor
City of San Antonio redevelopment priority zone
IDZ rezoning potential for maximum density

Federally-designated Opportunity Zone

Proximity to IH-35 + CBD

LAND BANK STRATEGY

Acquire below appraisal →Secure IDZ zoning + subdivision plat →Sell upon rezoning or Hold 24–36 months during UTSA + stadium buildout →Exit to developer (multifamily, student housing, mixed-use developer, or condos)

TARGET EXIT VALUATION SCENARIO

Conservative IDZ entitled land comps (downtown infill)$55–$65 PSF range

39,025 SF × $60 PSF = $2,341,500

Projected Value Creation:$1.40M → $2.34M = +$966K appreciation (excl. carry)

CAPITAL STRUCTURE SOUGHT

Land Banking Equity Partner:

• Co-management authority (approval rights on the sale, the IDZ application and any financing

changes)

• Funds 100% acquisition + Assignment Fee
• Funds entitlement (IDZ + plat) + Carry
• Receives majority equity
• Land DNA, LLC role as "entitlement engine" and executes zoning + entitlement strategy

Dom Cooper · Answer

This is a solid setup. One thing we’ve seen—especially in markets like this—is that strong deal flow tends to solve the capital side faster than pitching one-off opportunities.

Out of curiosity, are you consistently bringing in inbound opportunities like this, or was this more of a one-off find?

This is a solid setup. One thing we’ve seen—especially in markets like this—is that strong deal flow tends to solve the capital side faster than pitching one-off opportunities.

Out of curiosity, are you consistently bringing in inbound opportunities like this, or was this more of a one-off find?

Miguel Polanco · Answer

Thank you, J. Castro, for the advice and warm welcome! Grateful for your insights and I will take them seriously to give this deal the best opportunity. Much appreciate it!! Miguel

J Castro · Answer

Hey @Miguel Polanco, welcome to BP!This is a strong opportunity—especially with the basis you’re getting below appraisal and the location drivers you outlined.

When it comes to attracting a capital partner for a deal like this, it’s less about just the upside and more about how clearly you communicate risk, control, and execution.

Here are a few things that will help you position this effectively:

1. Lead with downside protection, not just upside Most experienced investors will immediately ask: “What’s my risk if this doesn’t go as planned?”

You’ve got a great story here:- Below-market acquisition- Existing income to offset carry- Clean environmental- Outside flood zone

Make that the headline—capital preservation first, upside second.

2. Simplify the structure (especially for first conversations) Right now, your structure is solid, but for initial outreach, keep it simple: 👉 “We’re offering a land banking opportunity with entitlement upside and a 24–36 month exit window.”

Then layer in details after you’ve got interest. Too much complexity upfront can lose people.

3. Be very clear on execution risk (entitlements) Your biggest value driver is IDZ + platting. Investors will want to know: • Your track record with entitlements • Timeline realism (not best case) • What happens if zoning takes longer or changes

If you can demonstrate experience or a proven consultant team, that builds major credibility.

4. Define the investor’s win clearly Spell this out in simple terms: • Target return (IRR or equity multiple) • Preferred return (if any) • Equity split • Decision-making rights

Right now you mention “majority equity,” but investors will want to quickly understand: 👉 “What do I make, and when?”

5. Go where this type of capital actually lives For this deal, your best targets are: • Land/spec developers • High-net-worth individuals already in Texas CRE • Opportunity Zone-focused investors • Small family offices

This isn’t a typical retail investor deal—it’s a niche, higher sophistication play.

6. Consider pairing equity with flexible debt Sometimes bringing in a small piece of short-term debt or bridge financing alongside equity can:- Reduce the equity ask- Improve investor returns- Make the deal more attractive overall

You’ve got a compelling deal—but investors don’t fund deals, they fund clarity and confidence.

If you can clearly answer: 👉 “What’s my downside?” 👉 “How experienced are you in executing this?” 👉 “What’s my return and timeline?”

—you’ll get traction much faster. Best of Luck!

Miguel Polanco · Answer

Thanks for the clear and insightful response, Stanley. I very much appreciate it. I am mostly focused on multifamily property investment (between 10-50 units deals), but this opportunity came my way and the rezoning plus billions being invested within a mile of this location appeared as a compelling deal to be made. I will go back and see how I can rework it to align it with your suggestions. I personally don't have direct experience in this type of deal, but have a team of specialized professionals with deep experience that I have assembled for support in getting it done. For example, my zoning attorney has decades of experience with the city and deep roots in the local zoning scene. Considering the city's commitment to the area plus their drive to revitalize the Westside of San Antonio, he does not see problems with rezoning within the standard 6 month time. Definitively will take you upon discussing more after I tinker a bit with the structure. Again, many thanks! Miguel

Stanley Yeldell · Answer

Miguel, solid breakdown of the deal. When you're raising capital for something like this, most money partners usually want three things clearly answered:

• Clear downside protection – what protects their capital if the rezoning or timeline takes longer than expected.
• Defined exit strategy – not just the upside exit, but also backup exits.
• Track record or execution team – who is actually driving the entitlement process and their experience with the city.

For deals like this, money partners are usually found through:
• local developer / investor meetups
• family offices interested in Opportunity Zone plays
• private lenders who sometimes convert into equity partners
• high-net-worth investors already active in Texas development

You might also consider structuring it as preferred equity or structured capital instead of pure equity. Some investors are more comfortable with a pref return plus upside participation.

I’m on the private lending side nationwide, so I see a lot of deals structured both as debt and equity. Happy to connect if you want to bounce ideas around on how to position this for investors.

How to find a money partner for this deal

5 Replies