Equity Capital for Real Estate

RE Capital Partners, LLC is the expert in debt and equity placement for small-cap commercial and multifamily real estate operators.

Through our relationships with over twenty private equity firms, advisors, and broker-dealers, we can facilitate private equity capital for well-qualified commercial real estate operators, as well as for acquisitions and development on projects requiring $1.5 million to $200 million.

Our strategic partners can usually accomplish funding for approved projects in less than sixty days.

 

We Put Your Project In Front of the Right Firms

Our principal understands the need of small-cap operators to promote their deals to the right firms when seeking to fill the capital stack. As intermediaries, we contact the best fit sources for our clients, both for debt financing and private equity. We have used our in-depth market knowledge and our substantial relationship base with other real estate advisory firms as well as institutional investors to narrow the field down to the one or two best suited for your project out of a universe representing virtually all geographies, asset types, investor profiles, and capital structures.dealroom-logo-19

Once we have facilitated the engagement the best firm for our clients, we provide them with access to the DealRoom, a secure, confidential transaction portal for sensitive documents and communications between the parties.

 

The DealRoom Rules:

If you would like your project to be considered for the DealRoom, please submit it through our secure contact form, here. We’ll review your project quickly and let you know if it has been accepted. While we do not accept all projects, those which make it will have a very high chance of funding. In order for us to promote your deal, you must first sign an agreement not to shop it to other parties during the period we have placed it on DealRoom. If none of our firms take an interest in your project within our agreed period of representation, we will remove it from our site and let you know so that you can approach other sources on your own.

Many of the firms we work with will provide additional services for your in order to achieve the best capital investment based on strategic fit, shared philosophies, and asset alignment. And, if you have questions about a particular firm, we will be happy to guide you through the complexities of securing capital and meeting the stringent demands of investors from start to finish.

 

We put qualified sponsors in front of institutional investors, private equity, and advisory firms.

 

How Do We Decide Which Deals To Accept?

When we first receive the information about your project, we begin by reviewing your submissions for an initial, broad set of criteria which must be met for any deal. Then we learn more about your your management team, as well as your identified property or investment criteria. Once we have an adequate picture of your proposed deal we’ll provide feedback on the market’s likely interest in your plan. You’ll know at this stage what your capital investors will most likely expect in terms of preferred returns and ROI.

Keep in mind that the principal’s credit and track record are just as important as the elements of the deal itself. Equity funding for a firm in which the principals have recently filed bankruptcy are not likely to get approved. With that said, there are always mitigating factors, for example, if the principal has substantially recovered and shows a strong net worth and balance sheet liquidity.

Also, keep in mind that your firm must co-invest. No one will look at your deal if you are only contributing “sweat equity.” In today’s market, investors expect deal sponsors to have money at risk, alongside theirs.  This alignment of interests contributes to the value of your company, and the ability to fund your deals.

Any firm willing to proceed with you will most likely substantiate your investment track record and conduct their own due diligence to prepare you for the debt or equity placement.

Once the placement agent accepts your deal, we will happily advise you on such matters as the final budget and operating proforma which may be required. If your target IRR is not met, we’ll help you identify any overlooked cash flows or deal modifications which may improve it. Additionally we can help you highlight your competitive advantages and track record, along with the property and demographic data to be considered by sophisticated investors.

We’ll also assist you in completing any remaining requirements, and will review with you the terms and documents. Additionally we’ll prepare you in adhering to ongoing governance and reporting requirements.

 

Who We Like To Work With

Our clients typically have decades of experience and strong track records.   They come to us from many sectors which include:

  • Multifamily Housing
  • Single-Family Residential
  • Hospitality
  • Retail
  • Niche classes such as Self-Storage
  • Office
  • Mixed-Use
  • Industrial Land Development

Generally the cost of capital is lower for acquisition of existing income properties.    For ground-up development, placing capital is more difficult, and expensive. However if your firm is experienced and comes to the table with a strong, full-cycle track record, we or our partners can usually secure the capital you require to expand your operations.

For established property management firms, we can arrange for new equity, either to acquire new properties, or to inject capital into end-of-life-cycle projects.Real Estate Investment Funds

For example, if an apartment operator wishes to return capital to the original investors, we can arrange for new capital while allowing the original investors to retain a partial ownership while the apartment operator retains management.

Or, we can assist the operator in the acquisition of new properties.

If you would like to discuss your project please contact us for a confidential discussion.

 

Real Estate Debt and Equity Placement

RE Capital Partner’s philosophy is to seek transactions where it can draw upon its years of experience and industry knowledge to structure and close transactions quickly and creatively. Our principal’s experience encompasses all aspects of real estate including acquisition, syndication, equity placement, workouts, financing, legal, management, development, leasing, and construction management. Our talent has enabled us to implement our strategy with many clients across a broad spectrum of property types.

 

We work with real estate operators and sponsors who wish to raise equity either via private investment or crowdfunding. To get started, simply submit your project to us in writing. We will review your submission, discuss your options with you, and then if you qualify, present your project to the DealRoom.

 

Crowdfunding Expertise

With the new SEC rules for general solicitation of private placements, new “crowdfunding” companies are emerging, all vying for deals as well as investor dollars.

RE Capital Partners, LLC has an immense depth of experience. Our managing member has closed hundreds of $ millions in deals. We retain first-class counsel anReal Estate Equity Capitald an array of professional advisers to assist our clients secure their capital through real estate crowdfunding.

There are over 100 real estate crowfunding platforms online as of the date of this publication. We maintain strong relationships with many of these companies, and know what kinds of deals the like, what’s in their pipeline, and how to best present opportunities to them.

They like us because we’ve pre-vetted any deals we present to them. We speak their language. We can get their attention, and usually get indications of interest (or not) in a matter of days.

Real Estate Crowdfunding will continue to grow exponentially as a legitimate, efficient, and transparent means of providing capital to worthy projects.

RE Capital Partners is pleased to be involved in this new mileu. We have chosen three of the best real estate crowdfund firms to join the DealRoom.

 

How To Get Started

1. Apply using our online form here. It only takes a few minutes.

2. Discuss your project. After we receive your initial contact, we’ll contact you to discuss your project. We can usually make decisions right away, usually within 24 hours after our first contact. We’ll let you know if we believe your project qualifies for any of our capital sources.

3. Engage with us. If we approve of your project, we will send an agreement to you to discuss and sign. This agreement cements our relationship and gives us the comfort we and our DealRoom partners need to dedicate our time attention to you and your deal.

4. Get your capital. Once engaged, our DealRoom partners will proceed rapidly to secure the capital you need to acquire your property. The entire process should take less than 60 days.

5. Do your work. You’ll be able to do what you do best: operate your property. And, at any point during the life of your project you wish to consult with us, we’re here for you.

 

Do you qualify?

To qualify for equity placement, operators should meet certain minimum requirements. The following list contains some of the more important criteria we’ll look at when initially reviewing your project.

Commercial Real Estate Capital1. You must have a verifiable 2 to 3 year track record in the specific property type you wish to acquire.

2. You must have solid financials and a good credit report.

3. If you are buying a property, you must have it under contract before we’ll present it in the DealRoom.

4. The project must require a minimum of $1.5 million USD.

5. You will be expected to contribute a portion of the equity from your own funds. Sweat Equity is nice, but it is not enough to qualify.

 

Please take careful note of our “good citizen” rules:

Submitting false, inaccurate, or misleading information will automatically disbar you from this site. Entrepreneurs who have been convicted of crimes involving fraud, dishonesty or moral turpitude, who have been sanctioned by the SEC, CFTC, FINRA, or similar regulatory bodies, with poor credit, or that are not able to legally conduct business in the US should not apply.

 

Property Types

We can arrange funding for the following property types:

  • Single Family Pools
  • Retail and Mixed Use Properties
  • Office Buildings
  • Office/Flex Warehouse Buildings
  • Multifamily
  • Hotel and Motel
  • Self-Storage Facilities
  • Ground-Up Development

We do not arrange funding for these asset classes:

  • Operating Businesses
  • Startups

 

Real Estate deals are funded from multiple sources. These may include mortgage financing, along with one or more “layers” of equity capital. Because equity capital has a lower priority than secured debt, it is considered risk capital, and thus commands a higher rate of return. To learn more about deal structuring, please see our article on the Capital Stack.

 

elgntwplk