Consulting

In addition to helping developers meet with the right debt and equity sources, we also assist and advise principals put together a robust and thorough fundraising campaign.

Our consulting services include strategy, project management and assistance with:

• Capital Stack Analysis and Fundraising Strategy

• Executive Summary and Business Plan Writing

• Pro Forma and Use of Funds Spreadsheets (Excel)

• Project Presentation / Deck Building (Keynote/PDF)

• Private Placement Program & Package Building

• Fundraising / Investment Campaign Management

• Project/Company Branding and Brand Strategy


A few things to consider before launching your private placement.

Private Placements

What kind of private placement would work best?

1. Which SEC exemption to go with?
2. Open-End or Closed-End Fund? Blind Pool or Project-Specific?
3. What’s the TIMELINE? (Somewhere from 6 months to 48 months) 4. Debt or Equity Investment? Or combine through separate offerings?

Debt: 8-12% Average Return, Shorter Term, LTV and Collateral are key

Equity: 10-13% Average Return, Longer Term, Higher Risk, Advanced

Rule 506 in Regulation D

Following the enactment of Title II, Rule 506 now provides two different ways of conducting a securities offering that is exempt from registration: Rule 506 (b) and 506 (c).

Rule 506 (c)

Allows an issuer to employ general solicitation to market securities offerings, provided that the issuers sell the securities only to “accredited investors.

Issuers raising capital under Rule 506(c) can use social media, the Internet, email, and television to solicit and raise capital from the general public.

Under Rule 506 (c), the issuer must take reasonable steps” to verify that each investor who purchases securities is in fact accredited.

Rule 506 (b)

Rule 506 (b) has the benefit of allowing up to 35 non-accredited + unlimited accredited investors and allowing the issuer to rely on an investor’s representation that it is an accredited investor without need to take any particular steps to verify the truth of the representations.

The downside is the issuer cannot solicit or advertise its offering to the public and the issuer must have a preexisting substantive relationship with each potential investor to whom it presents its offering.

“Accredited Investor”

An individual who has either a net worth of $1 million (exclusive of their principal residence) or who made greater than $200,000 a year in the prior 2 years and expects the same in the current year.


Marketing

In many cases, as with online crowdfunding portals, real estate investors and project organizers have to anticipate marketing. That means having a marketing strategy, plan, and budget.

If you are trying to raise $1M or $50M; expect to invest an appropriate, proportionate and reasonable amount in promotion. Some of the marketing strategies and tactics this might be invested in, include:

  • Strategy (Branding and Advertising Campaign)
  • Visual Comm. (Design, Infographics, Video, 3-D)
  • Copywriting (Materials, Articles, E-Mails, Ads)
  • Social Media Marketing (Paid + Organic)
  • Press Releases (Founders, Company, Project)
  • Content Marketing (Magazine, Blog, Partners)
  • PPC Ads (Pay-per-Click / Online Banner Ads)
  • E-Mail Marketing (Purchasing Lists + CRM)
  • Cold Calling (Purchasing Lists + Call Center)
  • Direct Mailing (Print Materials / Collateral)

As the Sponsor / Issuer you will be promoting:

I. Yourself: “Vetting the Sponsors” Why partner with you?

II. The Project: Its Location, Type, Hype

III. The Company: Experience, History, Portfolio, Track Record

IV. The Investment: Return, Risks, Timeline

– But at the end of the day, PEOPLE invest in PEOPLE.

Fundraising Campaign

When promoting a real estate investment deal, the issuers of the offering and their licensed brokers ARE NOT SELLING anything to prospective investors.
They are in fact EDUCATING their FUTURE PARTNERS.

It’s not a sale, it’s an invitation to a lucrative, win-win business partnership. In order to attract your FUTURE PARTNERS, (online and offline)

you need to CREATE 3 things:

1. HYPE

They need you spot you
in the ocean, and pay attention to what you have to say.

2. TRUST

How to gain your future partners’ trust? Why set sail with you?

3. DIFFERENCE

It’s a saturated space. What makes your deal IDEAL (or special)?

Contact us for more ideas!

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