All Forum Posts by: Omer Esiner

So my question is more for project/deal sponsors and is related to process.

How do you structure deals with investors when bidding on properties with a very short timeline?

We're currently putting SFH new construction deals together in Austin and we're often forced to close on target properties within days. In order to secure the properties, we've been using our own cash and amending the LLC to include investors after closing. This is NOT ideal as it involves additional paper work and fees needed to modify LLC/Operating agreements . We're also havening issues with lenders not wanting to provide both cash-out refis and construction loans on dirt that we own outright. Basically lenders say its one or the other.

Anybody have experience with this type of situation?  

Many thanks in advance!

This is more a question for fund managers/syndicators:

Do you build your own excel models or do you outsource? If outsourced, where is a good source?

I'm setting up a small RE investment fund focused on buying run-down homes and developing new SF homes for sale. All the models I've come across tend to be cash-flow focused. I'm really looking for a simple model that give me basic stats like cash-on-cash return, ROE, IRR following a waterfall. Very simple- GP and LP's, no hurdles. Just buy, develop, sell and distribute the profits.

I have some basic models I've built but I need something a bit more polished for investor collateral.

Any help would very much appreciated!

Great feedback @Ivan Barratt, thanks a million.

@Ivan Barratt , thanks for the reply. Understood about the terms.

We thought about the deal-by-deal route, but I thought that would be a bit of a challenge in securing funding quickly in such a fast market. Under such a structure, would you take an initial investment from investors for project #1, but have a commitment from them that you could draw upon for projects #2, 3, etc?

Thanks again.

@Ivan Barratt

New to the forum and a bit of a REI noobie. I have a few questions regarding setting up a small, private REI fund.

My partner (experienced SFR developer) and I plan on launching a small private fund focused on purchasing lots/teardowns and building SFRs in Austin TX.

My question for the pros on this forum is mainly related to the terms we offer to our investors. I was thinking, given that we're new to the REI space (but not to developing, and my partner does have a very impressive track record) we would offer our LP's a 20% proffered return on their investment and a 50/50 split between LPs and GPs on all returns above the 20% mark. Fund would charge a 2% management fee.

I've been told the preferred return is a little high but given that we're a new fund, it's reasonable return for our investors.

Would love to hear some thoughts on the terms that we're thinking.

Thanks in advance!

OE