All Forum Posts by: Account Closed

Brian thank you for your comment. You are correct to say that I do not have a RE investment track record myself yet. I do have a group of close family friends that might invest in the right deal (just like an angle investor would invest in any start up venture, mine just so happens to be real estate and not tech). But I hate to be the person back home asking for my family and friend's money. I would much rather raise the money from other "angel" investors if they exist in this space (similar to a venture capital pitch and deal). As I mentioned above, all my experience is with larger institutional players (sovereign wealth funds, public capital markets etc). 

Your comment confirmed what I was expecting to be the case but its good to have a sounding board.

All that said, raising institutional money at a REIT is a tough business prospect as well. No free lunches, that's for sure.

I appreciate your note. The BP community has already been informative.  

I have not posted on this site before but am curious to find out if it really is as powerful as every Podcast seems to suggest. 

By way of background, I am a CPA in Colorado and earned by Masters in Tax from the University of Denver. I worked in Big 4 public accounting for two years as a tax associate focused on REIT taxation and structuring and I currently work for a REIT in the Denver area that invests in farmland.

I would like to start developing some independent real estate investment opportunities and will need to raise equity capital. I understand the modeling that goes into real estate deals as I have done a fair bit of such modeling in my career thus far. I also understand how capital stacks and equity waterfalls work in typical private equity deals.

But here is my question. If I am able to source deals through a sound brokerage network and am looking to get to deals of relative scale faster (raising between $1.5m to $2m in equity capital at an 8% hurdle), where is the best place to find people interested in investing in a new GP with limited to no "street credit"? All the equity sources that I know of are institutional sources that invest in REIT level deals and are WAY to large to ever take an interest in my middle market $3 to 6 million deal. RealtyShares was one option that I found interesting but they basically tell you that they are a crowd funding site for middle market institutional players. They also charge 10% on common equity which seems aggressive in the current real estate market.

Interested to hear what the BiggerPockets community has to say about this topic.