Quais são as melhores fontes de capital para diferentes tipos de projetos e locais de CRE?

Generally, in commercial real estate, that takes up between 60% to 75% (and in rare cases, 80%) of the capital stack. How much do borrow? The more that you borrow, the riskier your investment will be. What ultimately determines this is based on: 1. How much lenders are willing to lend you 2. Whether you are seeking more than one loan (ie mezzanine loan?) 3. And whether your income is strong enough to make the metrics that lenders require (eg generally 1.2+ debt coverage)

The best capital sources for CRE projects depend on type and location: 1. Core Properties (Urban): Institutional investors and REITs, favoring stable, income-generating assets. 2. Value-Add Properties (Secondary Markets): Private equity firms and opportunity funds targeting higher returns through renovation. 3. Development Projects (Emerging Markets): Local banks, mezzanine lenders, and joint ventures, offering flexibility for higher-risk ventures. 4. Specialized Assets (Logistics, Healthcare): Specialty finance companies, private lenders, and crowdfunding platforms for niche markets. 5. Distressed Properties: Opportunity funds and private lenders, focusing on high-risk, high-reward turnarounds.

I like this approach but I love seller financing over going to the bank/lender. This more times than not is much better for the seller and buyer. No need to worry about outrageous rates, loan terms, LTV, or anything like that. This all can be negotiated between the seller and buyer creatively, in a way that benefits both parties!

While I agree that creative financing such as owner financing can be a very attractive option of debt, we need to be aware that just because owner financing is an option does not mean that the terms are attractive. (For the same reason, I have stopped prioritizing the underwriting to owner financing deals when my bandwidth is limited, when they don't always come with better terms.) Of course, this also means we can always do underwriting carefully, and then counter owner financing terms that create win-win conditions.

I worked at a firm that raised $10 million+ last year for multifamily developments. They utilized a GP/ LP structure and depending on the deal, the equity split varied. One thing I found interesting- they could easily fund smaller projects with one GP. Instead, they divided the GP pool into small check investments- specifically from prospective investors that were on the edge about working with this developer. Low minimum investments on these projects allowed the investors to get comfortable with the developer without much risk. After delivering successfully, they could ask for bigger check sizes during larger equity rounds. Creative way to grow your investor relationship network and secure equity for larger projects.

I've raised maybe $35 million in equity. Many have raised multiples of that. You should favor their advice, but here's mine: Choose the equity sources that are highly likely to respect you and whose investment mandate you can qualify for. Get very honest with yourself about what level you're at. After raising $2O million for my little fund, I paid $25K for a conference because they guaranteed meetings with multiple institutional investors & pension funds. They were nice to me but didn't invest. Instead, I have done crowdfunding and sold to HWN Individuals. I recommend starting there. I have finally graduated to Family Offices. At $100M deals, RIAs will likely take me seriously. After $1B+, small institutional investors.

When considering capital sources for CRE projects, several options exist depending on project type and location. Traditional bank loans are suitable for stable projects, while crowdfunding may suit riskier ventures. However, these options involve lengthy approval processes, strict terms, and higher interest rates. For quick, flexible capital, soft deposit financing is a better option. Offering funds within 48 hours without credit checks, this option uses a deposit-based rate, minimizing upfront costs. It allows investors and developers to work on multiple deals simultaneously by avoiding capital freezes, making it a valuable tool in today's dynamic CRE market 📊📈.