We’re not just a company, we’re a part of your team. As a provider of real estate financing services, we combine years of experience and current technologies to offer advanced, yet simple and reliable solutions for raising equity and debt. With a commitment to continuous improvement, we strive to satisfy your needs and exceed your expectations. This gives you more time to focus on what you do best—building quality projects!

Technology is changing the world of finance and capital is shifting from the banks who invest in the past to the entrepreneurs who invest in the future.

 

 

“I have been raising capital for over 40 years and I believe that a well thought out Capital Campaign with a digital presence on an Open Book Platform, together with a FINRA compliant Offering, in-person meetings, email marketing, press releases, special events and personal phone calls, is the best way for sponsors to capital raise and create a level of trust and accountability absent with typical wall street deals. ” Kyle Meyer, Managing Director, Open Source Capital, LLC”

 

 

We’re not just a consultant, we’re a part of your team.  As a provider of real estate syndication services, we combine years of experience and current technologies to offer advanced, yet simple and reliable solutions for raising equity and debt.  With a commitment to continuous improvement, we strive to satisfy your needs and exceed your expectations. This gives you more time to focus on what you do best—build and develop quality projects!

 

 

Online Syndication Programs

 

 

    Pre-campaign                Offering Period                    Post-campaign

Depending on the size and complexity of your project, a comprehensive capital campaign will typically cost  1.25% of the total project cost.  (Any Broker/Dealer fees for selling equity would be included.)

 

 Regulation D 506 (c ) Online Offerings powered by Open Source Capital, are designed to be sold by Broker/Dealer firms engaged in the sale of Regulation D 506c private placements.

 

Our business is working with selected companies to design Capital Campaigns using Online Self Directed Syndication.  We also help companies secure senior loans, construction loans, and JV Partners.  Capital is sourced from institutional investors, family offices and high net worth individuals interested in real estate.  Sponsors profit directly from our worldwide network and the local market access.  We focus on deal sizes between $10-$200 million with operators and developers involved in value-add and ground-up developments.

Given the specific details of a project, we help raise the capital needed to finance complex real estate deals.  Our management team’s combined expertise in vetting, structuring, underwriting, and marketing FINRA and NON-FINRA real estate security offerings.  Our involvement helps investors to act quickly when considering various investment opportunities.  Our combined resources provide prompt customer service, as well as, accurate and timely information for account billing, follow-up, financial reporting, and management review. Operations include asset management functions including monitoring of construction performance and on-going market analysis.  Our managers closely monitor the investments to help identify any potential underperformance and work with the deal Sponsors to remedy the situation in an expeditious manner to help mitigate any effects of underperformance.  Our asset managers are responsible for understanding the Company’s business plan with respect to each property and monitoring performance against that plan. The members of the management teams have extensive experience in all aspects of the real estate and securities business, including debt and equity placement, residential & commercial construction and development, institutional investment management, commercial lending, alternative debt financing, structuring and syndication.  Senior management also has a strong background in asset management, creditors’ rights, and risk management. Overall, members of management team each have an average of more than 30 years’ experience in this business and provide clients access to a broad referral network with significant practical knowledge of real estate investment, development, and capital markets. We build independent financial models based on our own experience and research.

 A Guide for Investors and Developers

  • The Days of 80 to 90% bank project financing are gone.
  • Project financing now requires real equity and almost always involves an outside equity partner.
  • Today’s LP equity partners are providing up to 90% of the 30-40% equity requirement sought by most construction lenders.
  • From a developer’s perspective, LP equity allows the developer to generate fees and preserve capital to support the soft cost associated with pre-development. From an LP equity investor’s perspective, investment in a development deal provides the high risk-adjusted returns in real estate, typically only found in the case of distressed or turnaround situations.
  • From an investment perspective, OpenSource brings an additional level of underwriting and investment management for the benefit of the GP, the LP, and the lender.
  • Open Book investors are prepared to take on equity risk in return for a very high expected level of return. Target returns for opportunity funds and high net worth individuals are currently in the low to mid-20s, based on time horizons of 3 to 4 years.

 

                        You have a passion for great real estate projects

                               We have a passion for helping you finance them

  Considering the fact that our engagement only expands your options, there is rarely an advantage to waiting.

 

Our Services, as further specified may include:

  1. Project Financial Modeling and Pricing
  2. Real Estate Sales and Leasing
  3. Internet Marketing
  4. Property Management
  5. Broker Opinion Letters
  6. Architectural Plan Review
  7. Construction cost review
  8. Developing Pitch Decks
  9. Underwriting and Stress Testing
  10. Setting up a “SPV” as Issuer
  11. Developing Private Placement Memorandums for (Regulation D 506c Offerings)
  12. Developing Term Sheets
  13. Sourcing Senior and Mezzanine Mortgages and negotiating terms
  14. Submissions to Broker/Dealer FINRA review
  15. Portal Placement and Maintenance
  16. Arranging due diligence and investor meeting
  17. Marketing/Branding
  18. Lead Investor Sourcing
  19. Coordinating Due Diligence
  20. Developing Terms of Operating Agreement
  21. Developing Terms of (Investor/Developer) Construction Agreements
  22. Developing Terms of (Investor/Developer) Property Management Agreements
  23. Coordinating the Closing
  24. Project monitoring
  25. Transaction Management
  26. Broker/Dealer Placement for FINRA deals
  27. Asset monitoring
  28. Investor Relations/Branding Marketing

 

So how much does it cost to organize a comprehensive capital campaign to raise project level equity?

    • Fees
      • Open Source Capital Fees 
        • Deal structuring, legal, and documentation fee (varies with the deal complexity- typically $25,000 to $30,000, paid $10,000 upon engagement and the balance due with the delivery of the PPM)
        • Capital Campaign- Consulting, administration, and marketing fee 1.25% of the project cost less any broker/dealer fees (paid at closing)
        • Optional debt placement fee of .5% (paid at closing)
      • RealConnex.com Fees:
          • $4,000 set up fee
          • $500 per month platform fee
      • 2.5% equity raise success fee when marketed through a registered broker-dealer to RIA and UHNW investor network.