The Capital Stack
Last week, we shared our most recent investment opportunity with the members of our investor portal. In just 32 minutes and through one email our equity raise was oversubscribed. Although the amount raised isn’t substantial, the high level of investor confidence it signifies is truly rewarding. The recently completed raise was for a “bread and butter” deal for us. We will share more details after the closing, which is scheduled in a few weeks.
If you’re interested in joining our investor portal where you will receive priority access to our deals, sign up using the button below.
What this Means.
For new and returning investors
If you’re an investor interested in becoming a Limited Partner (LP), sign up on our portal and monitor your email. We operate on a ‘first come, first served’ basis and reserve spots for several repeat LPs who want to be included in each deal. We also accept “blind reservations”– simply send me an email, and I’ll include you on the list. This reservation is not a firm commitment and is subject to the usual due diligence (DD) period. During this time, I’ll share the deal Offering Memorandum (OM), answer your questions, and if it’s not the right fit or timing for you, you’re not obligated. This provides you with a priority reservation without the need to constantly check your email.
For brokers and sellers
If you are a broker or seller of well-located apartments in suburban Detroit and Grand Rapids, please share your deals with me. I can provide you with a strong offer within 24 hours, often even sooner. In today’s market, many groups are struggling to secure equity, but our demand has never been higher. While we may not offer the highest purchase price, assuming no significant changes occur during due diligence, we are committed to closing within the contract period.
Next Steps
After completing Three Full-Cycle Deals last year, with Internal Rates of Return (IRRs) at 33%, 22%, and 12%, our investors are eager for more, and we’re excited to meet that demand. The smaller deals we’ve been acquiring fill up quickly. If you’re interested in participating, sign up for our portal. To secure your spot in advance for our next deal, email me with your desired amount, and I’ll reserve your allocation for our upcoming opportunity.
If you’re a seller or a broker handling properties within our preferred range (8-80 unit suburban multifamily), please provide details, and we would love to put a deal together.
Major Market News
National Association of Realtors Lawsuit
The NAR recently lost a major lawsuit over commissions. Buyer agents will now be required to get a buyer agency agreement outlining what the buyer’s cost will be to use their agent. Previously this was common, but the language was that buyers would pay any commission not paid by the seller. Now that sellers are no longer expected to pay these commissions of up to 3% of the sale price, buyers will be less reluctant to sign these agreements.
Link here to the full article: https://www.nytimes.com/2024/03/15/realestate/national-association-realtors-commission-settlement.html
Tips and Tricks
Terms-
Offering Memorandum: An Offering Memorandum (OM) is a comprehensive legal document prepared by a company or investment issuer when seeking to raise capital. It provides detailed information about the business, its operations, financial performance, and the terms of the investment opportunity. The OM serves as a key tool for potential investors, offering insights into the risks and opportunities associated with the investment, allowing them to make informed decisions before committing funds.
