Over the past several months I have begun to evaluate investments into Real Estate Operating Companies. We look to invest significant capital into established operating companies in addition to investing into real estate assets. In the past I have solely worked on asset level and fund level real estate investments. In return for our investment into the REOC we get first choice on funding all future RE investments (LP and/or GP capital), we share in their fees, and we share in the promotes.
Does anyone else here have experience with these kinds of investments? I haven't seen a lot of discussion here on these types of investments. It's definitely a different animal than asset level investing, but it seems to have a lot of promise as you can quickly deploy a lot of capital or just sit on the sidelines until the right opportunity comes along.
How does a person go about soliciting his investment to someone, or some entity, or firm who manages an REOC? For example I have a fledgling real estate development company that I am trying to get established. I currently have a credit tenant that has the intention to lease w/ option to purchase interest. I confident I can make the deal work with the way it's structured (much like a GP/LP) relationship related to the LIHTC model. Although there is a difference of equity share percentages. In other words it's not close to 99% LP to 1%GP, however, its a similar relationship. I have the need a PE investor who ha a model more related to what is described as a VC (as described in your article). I need this LP to provided the mezzanine financing for the construction loan. The LLC formed of my company n the PE investor could either borrow the amount of funds to cover the cost of construction as well as capitalize the remaining debt I would owe on the property where the seller is carrying the majority of the note for a short term period 12 - 18 months. I figure the VC would have no problem borrowing the money with presumably AAA credit nd mega assets and cash. I have recently become a broker (sexy name in my case as I don't consider myself more than a lower tier member of a multi-marketing concept level that makes a percentage of a percentage when I am the catalyst of a loan that's gone through. Ultimately I would be providing the long term or permanent financing through my affiliation a lending group. Which brings me to another question, What is the title of the person who is try to get me a loan comprised of unsecured loan, a secured loan, and a line of credit. I would be curious as to what his title is in their structure throughout the industry. I am figuring the that an attractive and more than fair proposition to give up close to the fees generated by the LLC. I have someone, small firm, who I've contracted to assemble the data to make it consistent what I assume most of the VC's or GP are used to seeing and have probably come to expect. Although, I have two candidates in mind, I would be obliged if I am obliged to get on a website to learn more about this area of lending.
The short question is how, or where to go, to find a qualified individuals to be a partner to things to some degree of the file types, etc. I am anticipating the total cot of this project including d diet soda soft cot to 13 - $15 M) operating capitol finding
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