All Forum Posts by: Omar Khan

Lately, I've also been seeing a lot of "positive mindset" newbies with little to no experience/education coming into the space and then complaining that they failed. They are typically weekend warriors.

No amount of positive thinking is going to save you when math is working against you. 

lol @ low capital raise. Would love to see you post your numbers on capital raising. 

Also someone with a $100K net worth shouldn't be investing in illiquid assets in the first place.

I have read his PPM and do feel that it is one-sided. But all major syndicators/PE firms have one-sided contracts. That's the price you pay to be with a headliner vs. an also-ran. Again, not saying that I would invest in CC but you have zero idea on how hard it is raise millions of dollars. 

P.S. If you can raise $5M-$15M as easily as you claim happens in real life, let's talk!

I can assure you 99.9% of the people on this website (and the world) can not raise $5M, let alone $15M. Unless you're some capital raising savant, I wouldn't put the words $5M and typical in the same sentence. 

Again, not saying you should invest with CC but you might have a warped sense of how hard it is to raise millions of dollars, multiple times a year.

Great comments above. Depending on the location, a lot of folks park their money as the area could be seeing massive capital appreciation i.e. land values go up exponentially in the next few years (or that is the expectation). 

There are a multitude of reasons plus the advertised sales price is not always the price an asset actually gets sold at. 

I agree with the sentiment of what you are saying but I think you might not have a good grasp on how these things work from a sponsor's perspective. Every single sponsor on the planet is trying to diversify their equity sources, even the ones that supposedly do not take money anymore like Baupost Group (Seth Klarman). This includes global behemoths like Blackstone and Apollo. While they may not accept your or my money (because it is too little), nonetheless, they, too, are actively expanding their equity sources (just at a very different level). 

Not supporting CC here but till you haven't actually gone and raised $20M, $50M or even $100M (which only a handful of folks in the country can do easily), it's easy being a keyboard warrior and talking about technicalities. 

 It's very, very hard raising huge gobs of money. You have to fight for every dollar because money doesn't fall from the sky. 

In other words, most big name sponsors aren't trying to buy a few SFR's or 1-2 multifamily properties per year. They have a pipeline in the hundreds of millions of dollars. Ain't easy filling that up.

P.S. Not saying I would invest in CC.

Don't think people are going to hand you the keys to the kingdom for free (or even if you pay for them). As @Joel Owens said, these lists are highly valuable. On top of that, even if you get such lists but don't know the decision-markers, you're going to have a tough time even getting past the EA.

This is really not as hard some people would lead you to believe. 

Simply put, you need to have substantive, pre-existing relationships with investors before you take their money. This is unless you will file under 506c in which case... go crazy advertising (with some obvious limits which your attorney can guide you on). 

For marketing materials, outline your track record, the investment opportunity and market. Essentially, you want to answer the question - why you. That's it! 

Honestly, at the initial stages your investors are investing more in you and less in the opportunity. You just have to outline why you will be a good steward of their capital.

You can also save yourself a ton of hassle and sign on to most syndicators email lists.  You will then be bombarded with emails whenever a new deal is available. You can copy everything they do. 

Like with most other things in life, you will hire a lawyer which you will do here as well. Just try to hire the best one and you'll be fine. 

This is NOT the hardest thing in the world as some people make it out to be.

P.S. Please, don't make lame credibility books. They are the true mark of a noob. You already have a track record - use it.

Please, don't take this the wrong way but it doesn't seem like you are ready to raise $30M because these are very basic questions (not saying you shouldn't ask them). Raising $30M is a big commitment that only a few handful of syndicators in the country are able to do. Without a successful track record and extensive rolodex of people in this area, you will be swimming upstream. 

I am assuming that you are a junior analyst with a developer (and that they have a more extensive track record). If so, why not rely on their relationships within the broker-dealer community?

Thanks for the kind words.

Our largest equity partner had a death in the family – patriarch died.

We had the opportunity to bring on multiple partners but went with the one we felt offered the best combination of equity and business acumen.

Property’s operations are ahead of schedule because we had researched the market very thoroughly before investing. Our “issue” (if you can call it that) has been that we are now done with the bulk of the exterior (and interior rehabs) and waiting for the next set of leases to expire so that we can upgrade those units as well.

The big things to watch out are always the same – investing in supply constrained markets with value-add upside (true value-add vs. taking existing renovations to the “next” level – which all brokers tell you is the big thing) and being adequately capitalized.

Source = multiple lenders I talked to on a weekly basis as I am a syndicator. This is also basic risk management because you don't your revenue tied to any one professional/industry as it makes it hard to manage the risk in your loan book.