The Capital Stack
Fully Subscribed – What Does This Mean?
We recently filled our latest investment offering in less than 24 hours. Fully subscribed indicates that all available capital within the raise has been filled, and no additional investments are being solicited or accepted at this time. The term “Subscribed” ties back to the LP’s document package. The subscription page within this package is where each investor indicates their investment amount and the investment entity. Our investments are first sent to our registered investors through our portal, which you can sign up for below.
How Did We Get There?
We reached full subscription for our latest deal with one email and then a couple of phone calls with follow-up questions from prospective LPs. Every LP that we spoke to committed to the deal. Multiple repeat LPs, who have invested in numerous past deals with us, are once again joining our latest opportunity. These LPs will typically send me an email or a text saying, “I’m in for $100k” “I’m in for $50k” or “Hold my spot for $150k” etc. The soft commitment process is informal but effective.
The soft commitment period is where we get exactly that, soft commitments. Nothing is finalized until we have all the investment documents ready and sent out to LPs. New LPs often have questions and want to conduct their own due diligence on us, which is a good thing. I am always happy to provide additional details on the investment as well as answer any questions investors might have.
What Questions Should I Ask as an LP?
When I talk to LPs, they often ask 3-4 questions and then say, ‘Is there anything else I should ask? Listed below are some sample questions I’ve received.
- How much of your own money are you putting into the deal?
- What’s the biggest downside of the deal?
- How did you source this deal?
- What is your competitive edge to making this deal successful?
Did I Miss Out?
“I was interested in investing in the next opportunity but didn’t hear about it. How can I join the next deal?” Sign up for our investor portal and schedule a call. In the case we proceed with a 506(b) raise, we need to establish a ‘lasting substantiate’ relationship as per SEC regulations. The easiest way to begin this is with a quick phone call. I’m also open to meeting in person for coffee or lunch whatever helps you get familiar with us. Once we’re acquainted, we can start bringing potential investment opportunities your way.
Major Market News
StripMallGuy’s Identity Revealed
Don Tepman, also known as StripMallGuy, has recently disclosed his identity after being anonymous for two and a half years. He operates University Avenue Partners and is expanding nationally with TownCentre Capital. With over 215,000 followers, his expertise in the strip mall market has attracted attention from industry professionals across the country. By revealing his identity, Tepman seeks to maximize the benefits of his online presence for his business. Follow @StripMallGuy and @ToryJSheffer on X for more insights into the real estate market.
Source: TheRealDeal. (2024, Jan 22nd) Meet the real guy behind anonymous “StripMallGuy” X account. https://therealdeal.com/national/2024/01/22/the-real-name-behind-real-estate-x-celebrity-stripmallguy/
Tips and Tricks
LP: In multifamily real estate, a limited partner (LP) is an individual or entity that invests capital into a real estate partnership, such as a real estate syndication. As an LP, they contribute funds to the partnership for the acquisition or development of multifamily properties. In return, they receive ownership interests or units in the partnership and share in the profits generated from the operation of the multifamily properties. Limited partners typically have limited liability and are not involved in the day-to-day management of the properties, leaving the operational decisions and responsibilities to the general partner or managing entity.