Profit Sharing Loans

Accredited & Non-Accredited Investors- Profit from Spec Homes, Investment Properties & Vacation Rentals

Find Out the Advantages of Dequity

Contact An Agent

 

Crowdfunded Preferred Equity Investments

For acquisition, construction or renovation of investment property

 

 

Small Balanced Real Estate Investors

 

 

BUILDERS, DEVELOPERS and INVESTORS– If you are eager to finance your next project with funds from potential accredited and non-accredited investors utilizing Title III of the JOBS ACT, let Open Source Capital help you improve the way you approach this new era of MarketPlace Financing.

Learn how to communicate information that investors need to know prior to making an investment.  Let us provide you with the insights we have gained from working directly with the investment community and company executives for over 20 years.  Having an experienced third party at the table with other members of your management team will significantly improve your odds when raising the capital you need.

Let us help you to:

  • Better establish and maintain relationships with investment professionals
  • Help you prepare and file your Offering Documents
  • Implement an array of financial strategies that investors seek and require
  • Perfect your company’s elevator pitch
  • Write a compelling, carefully conceived, up-to-date proforma and project business plan
  • Gather mandatory due diligence information—before you need it
  • Gain favorable media attention via effective news releases
  • Harness the power of the internet, MLS and social media to strengthen your company’s influence.

 

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Typical Financial snapshot

  • Offering Type: Participating Debt
  • Funding Goal: $1,000,000

Minimum Investment Amount: $5,000

Capital Stack

    • Sponsor                             $ 300,000
    • Preferred Equity             $1,000,000
    • Senior Loan                      $3,000,000
    • Total capital                     $4,300,000

Profit Participation: (varies 20-80% – based on proforma)

Pref return rate (7-18%)

Target IRR: 17 25% (estimated)

Term: 12 – 48 months

FEES: Engagement & document prep fee- $7,500 plus a success fee at closing equal to 1.5% of the property’s appraised finished value

 

A Spec Home is a home that a builder that constructs without already having a buyer or tenant.

Why build spec homes?

  • Spec homes are a good choice for buyers who don’t want to have input at each point of construction and who want to be able to move into the home quickly. Successful spec homebuilders are typically selective concerning the neighborhood in which they build. They are aware of the amenities that allow the home to bring a premium price while reducing the time between the completion of construction and the buyer move-in date.
  • The advantage of a spec home to the buyer is the ability to see exactly what he is purchasing. However, because the home is the builder’s idea, upscale features that add to the cost of the home are sometimes not important to the buyer. Depending on when the buyer places the home under contract, he may lose the ability to choose paint colors, flooring and other features that make the home his own.
  • The advantage of a spec home to the buyer is the ability to see exactly what he is purchasing. However, because the home is the builder’s idea, upscale features that add to the cost of the home are sometimes not important to the buyer. Depending on when the buyer places the home under contract, he may lose the ability to choose paint colors, flooring and other features that make the home his own.
  • Builders who make poor decisions often have spec homes that remain on the market too long, requiring them to discount the price.

Learn More