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.

 

 

“We believe that a well thought out Syndication 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, helps sponsors round out their capital raise and creates a level of trust and accountability absent with typical crowdfunding platforms.” Kyle Meyer, Managing Director, Open Source Capital, LLC”

 

 

We’re not just a company, 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!

 

 

Syndication Programs

 

 

    Pre-campaign                Offering Period                    Post-campaign

Depending on the size, complexity and broker deal fees, a comprehensive capital campaign for Prefered Equity typically cost between 4 – 8% of the amount funded.

 

 Regulation D 506 (c ) Offerings powered by Open Source Capital and  reviewed by a FINRA attorney allows Broker/Dealer firms to engaged in the sale of private placement securities, which can enhance the Offering.

 

Our business is working with selected companies to design Capital Campaigns using Self Directed Syndication.  We also help companies secure senior loans, construction loans, dequity  and co-sponsor equity.  Capital is sourced from institutional investors, family offices and high net worth individuals investing in  Regulation D 506c Offerings, listed in an OPEN BOOK platform.  Sponsors profit directly from our worldwide network and the local market access.  We focus on providing offerings between $3-$100 million in LP equity for 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 of 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.

 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 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 and your cost is 88% success based, 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 Trustee Agreements
  13. Developing Term Sheets
  14. Developing Mortgage and Note Terms
  15. Developing Indenture Terms and Agreements
  16. Submissions to Broker/Dealer FINRA review
  17. Portal Placement and Maintenance
  18. Expenses for travel, due diligence expenses and investor meeting
  19. Marketing/Branding
  20. Lead Investor Sourcing
  21. Coordinating Due Diligence
  22. Negotiating Term Sheets
  23. Developing Terms of Operating Agreement
  24. Developing Terms of (Investor/Developer) Construction Agreements
  25. Developing Terms of (Investor/Developer) Property Management Agreements
  26. Coordinating the Closing
  27. Project monitoring
  28. Transaction Management and Coordination of Funds Disbursement
  29. Broker/Dealer Placement for FINRA deals
  30. Asset monitoring
  31. Investor Relations
  32. Distribution of 1099’s or K1’s to Investors

 

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

Depending on the size and complexity, a comprehensive capital campaign for a Preffered Equity Raise typically cost between 3 – 7% of the amount of capital being raised.

 

Typical Sponsor (reimbursable upfront fees)

Engagement fee $5,000
Deal underwriting, capital structuring & submission of PPM to FINRA approved attorney for SEC compliance review $10,000
* Third party PR, advertising & email campaign $15,000
*SEC Attorney Compliance Review $3,000
* Portal placement & posting fee $2,000
Total $35,000

      * Denotes third party fees

  • When the PPM is ready to market you pay the portal posting and marketing fees.
  • The balance of the consulting fees due OSC and the Portal Provider are paid at closing or over the life of the project.  All fees are detailed in the Engagement Letter. 
  • Broker/Dealer Sales Fees, (should you elect to use a Registered Broker/Dealer to sell your Offering to accredited investors, will be paid at closing).