Raising Private Capital. Tips and Tricks

[Blake McWilliams]

Raising Private Capital, in its essence, seems simple enough. However, when peeling back the layers I find myself at dead ends time and time again. 

A few months back, a fellow broker brought me a pocket listing for a newly built and stabilized 32 unit apartment complex. 

The deal itself seems like an incredible opportunity for the right buyer, penciling at a 9 CAP.

I ran every scenario of tackling this purchase myself. Short of selling my entire portfolio, the liquid capital for the down-payment remains unattainable. 

This has led me to seeking equity partners. I tapped out my client pool of investors and began to seek private capital for equity and I keep hitting walls. 

Any tips tricks or otherwise when presenting to potential partners would be immensely appreciated.

[Henry Clark]

OP.  Revisiting self financing.

1.  Work with your commercial lender and see if you can self finance, by cross collateralizing your existing portfolio. Sounds like you have equity in them.

2.  Go for a lower downpayment.  See if you can do an SBA loan at 10% versus a commercial loan at 25% downpayment.

As far as investors:

3.  Work with your commercial lender/insurer/lawyer/personal banker and see if they know of any interested parties.

4.  Attend the local and regional Real Estate meetups.