3 Foolproof Methods To Enter Real Estate Private Equity – Natu Myers of Raises.com
I have one that’s on Mars here again, back with another video. And in this video, I’m going to tell you that three real estate transformations that people who raise capital make. In helping, you know, hundreds of people, you know, either set up their funds, raise capital and, you know, build private placement memorandums, you know, get compliance systems and introductions to private equity firms raised in excess of almost $200 million through the connections people were able to make. This is all very racist, by the way, in seeing all these things happen. We learned we’ve seen a few patterns, and I’m not sure if these patterns have caught on and I’m not sure if a lot of people recognize these patterns, but they’re basically they’re they’re pretty much four different transformations that people make in a business when it comes to raising capital, especially for hard assets and buy hard assets. I mean, you know, mainly real estates or businesses with a lot of collateral. So but I’m just going to focus for the purpose of this one. I’m just going to quickly talk about the people who raise capital in the real estate sector for private equity and significant amounts in excess of $100 Million down to even small deals. So really, the first transformation that people make is going from a basically from somebody and we don’t really work permit with many of these these individuals, but people who just invest their own money into rental properties. (real estate private equity firms)
So this is really beginning of market stuff like the average Joe, the average Joe Blow who’s like, okay, let me invest in some real estate. Let me just buy a house that isn’t mine and rent it out. So that’s really the first transformation. The second transformation is people who go from investing their own money in real estate to doing a syndication, because a lot of people we talk to, they may be bored and tired and limited by the fact that they can only invest their own capital into real estate and they can only invest their own money into the deals, but they want to actually buy apartment complexes and buy bigger deals. And maybe there are some situations where they’d rather do a private equity raise or private equity fund or private equity syndication, because sometimes people can do purely debts. Some people may use purely debt to acquire a big bunch of houses or bunch of units, but and many people are more comfortable using equity to do so for various reasons. Some reasons maybe the freedom, the actual lack of leverage and the lack of risk is more leveraged sometimes can mean more risk now that interest rates, especially after things have slowed down after the whole coronavirus thing. Things are picking back up, the interest rates are going back up and a lot of people are going back to equity. (real estate private equity firms)
So what we’re seeing is people who want to raise capital by bringing in a group of investors to fund a deal and they want to raise capital of equity. And so because a lot of people haven’t raised an equity with other people’s money before and they’re looking to do this in a serious way, like the investment bankers do, they typically have to do a private placement. And so these are the types of people these are one of the primary types of people. One of the first clients that raises income people that have already had money in real estate, and then they want to use other people’s equity to raise capital, to buy, you know, apartment complexes, large plots of land, what have you. And so the third transformation are people that have already syndicated. So let’s say you’ve raised like less than $10 Million in Syndications and you want to actually raise $10 million plus. So this is these are more sophisticated types of investors or people that have been in real estate who want to raise capital, just like the investment banks raise capital. And they want to do it. They want to build a fund that has all the bells and whistles with their fund, including the appropriate network. (real estate private equity firms)
I mean, raising $100 million is not a joke. And so the type of things that people and the type of analyses, the type of underwriting, the type of complexity, the type of offerings, even the ability to go public, these things are typically available to people who do like a small syndication of like 2 million bucks. If you’re raising like a $75 Million transaction, you would need some of the best likes Tier two investment bankers and use their knowledge to fill in gaps in relationships especially, and things that you do not know because not many people operate at that level. Three types of transformations that people usually make when they work on raising capital. And number one, real estate syndicator or number one average Joe Blow to a real estate investor. Number two, real estate investor to a real estate syndicator. And number three, real estate syndicator to an asset manager raising capital like an investment bank for a more sophisticated fund. And if you’re anywhere, especially in the second or in a third phase of it, just had to raise dot com and we’ll take care of you because we’ve seen this pattern over and over again. So that’s generally those are generally the transformations people make. And if you like, this video is on YouTube, hit the like button and subscribe. So with this, we’ll see you the next one. (real estate private equity firms)