Raising capital for a larger multi-family deal

[Jonathan New]

My partners and I are scouring our contacts and networking to piece together verbal capital investments for POF in order to submit LOI's.

My question for the BP world, is are there companies that provide the capital in exchange for equity positions?  If so, I’d love recommendations, and what equity position is typical for bringing them in as a KP?  Thanks in advance!

[Dan Handford]

@Jonathan New I agree with @Brian Burke that a POF is rarely needed. If a broker/agent is asking you for a POF it means they don't think you know what your talking about OR they are inexperienced themselves and don't know what they are talking about.

If a POF is actually needed then it is usually just for the EMD money and not the entire purchase price.

Another rule of thumb when getting verbal "commitments" is to make sure you get twice as many commitments for the amount of money you will need in order to make sure you can lock it up quickly. Many people will tell you "yes I will invest in one of your deals" but for one reason or another they don't end up investing when it comes time to wire funds.