Property Manager · Minneapolis, MN · Member since 2014 · 380 posts · 167 votes
We have been in business since 2007 and have a successful business that luckily has had a great track record. This has attracted investor interest, but at the same time opens up potential liability and of course the task of property setting up investment structures that I iron clad and good for all parties involved.
We recently have been contacted by multiple interest from foreign countries. Does anyone have good advice on how to proceed? I want to make sure the sources are valid of course, but also not connected to anything that could negatively are company image as well.
Also, I have a few groups I work with that have put valid syndications together (about 25 million under management), but am looking for an individual that can help do the same for our company directly vs. an outside group we offer our services to.
If anyone can offer help in either area I thank you in advance. We currently have about 15 million combined investment offers from multiple investors that reached out to us directly that we simply don't know how to proceed with.
It looks like you have built up a nice PM group in the Twin Cities. A few questions:
Do you have access to deals? I'm talking about being a part of the deal flow on a regular basis with all or most of the players in the marketplace? Can you properly underwrite the deals and move forward with offers, due diligence etc? Or is this why you are hiring someone?
You have access to 15MM, that's good but I wouldn't count on all of the 15MM. More like half unless you truly have strong relationships with these people and know the commitments are strong. How's your balance sheet? Are you bankable? Do you have strong income and assets to guarantee the loan or support earnest money and due diligence (you would probably go non-recourse route depending on asset). Do you understand the underwriting process with both local banks and other funds (CMBS, Life, Fannie & Freddie multi-family)? If you have access to successful syndicators I would sit down with them and discuss the process.
Lastly is this in-line with your company & personal goals?
Hiring an acquisition/fundraising employee is one route to go but just make sure you that understand the process & logistics yourself. Also be ready to take on the payroll expense. Beyond that work with a competent blue sky lawyer who handles these types of transactions on a regular basis (along with similar deal size).
Other than that it sounds very exciting! Now go get some deals!