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Structuring and Raising Debt & Equity for Real Estate

September 8, 2022

My new book, Structuring and Raising Debt & Equity for Real Estate, is finally almost here. We plan to do a “soft” launch of the book at our upcoming in-person event, LSC NY Summit, where we will be giving away copies and encouraging everyone to leave reviews on Amazon. VIP tickets are sold out, but you can purchase a General ticket if you’d like to attend, here.

 

My new book fits well with the theme of our LSC NY Summit 2022 since the focus of the conference is on building debt and equity relationships and raising capital. This conference will be particularly interesting timing given the current market environment where much has changed on both the debt and equity side. In the last six months, the debt markets have changed dramatically, forcing us to build new relationships and adjust our structure/strategy. On the equity side, it appears that there is a pullback across the board. Some retail investors may be pulling back to due losses in the stock market and an overall more bearish attitude while institutional investors may have lots of dry powder but are holding out for potentially better opportunities in the future.

 

We are still having success raising both debt and equity for our acquisitions, but it is requiring a lot more work. Adding to the workload is the fact that our lower leverage strategy nearly doubles the amount of equity we must raise for a given deal. Raising more equity capital for a deal protects investors’ downside but reduces our profitability as the sponsor. This is an adjustment for us, but we are committed to structuring the best deals possible for our investors.

 

1031 exchange capital remains a major part of our business as investors continue to sell property and look for a reliable and hands-off 1031 exchange solution with us. 1031 exchanges require additional legal structuring and lender legal work, but we have found it to be well worth it.

 

These various sources of equity remind me of the importance of having a diverse base of investors. Our goal is to be effective buyers of real estate throughout the entire market cycle as well as for various strategies. Different types of investors can help you pursue various opportunities, and some investors may be more aggressive than others depending on the situation. We are long-term thinkers and the best thing we can do is perform for and communicate with our investors to earn their trust and repeat business. I look forward to sharing more about these topics and more in my upcoming book, Structuring and Raising Debt & Equity for Real Estate as well as at our LSC NY Summit 2022 this month.