Project Funding

If you need help raising capital for real estate you should consider the AltMarketPlace

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

 

      

Powered by Open Source Capital, Stonegate Global and Rainmaker Securitieswe provide a unique service that connects capital with experienced real estate operators.

 

Our business is working with companies to syndicate real estate projects managed by seasoned professionals.  We help companyies secure senior loans, construction loans, mezz loans, preferred equity and co-sponsor equity- with a focus on new construction and value-add projects.  Capital is sourced from institutional investors, family offices and high net worth individuals investing in FINRA approved Regulation D 506c Offerings listed on our AltMarketPlace platform.  Our partners profit directly from our worldwide network and the local market access.

 

Given the specific details of a project we raise the capital needed to finance complex real estate deals.  Our management team’s combined expertise of originating, vetting, structuring, underwriting, and marketing FINRA approved real estate securities 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 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.

Finding the right balance between Sponsor Equity and LP Equity

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, Stonegate OpenSource brings an additional level of underwriting and investment management for the benefit of the GP, the LP and the lender.
  • Stonegate OpenSource 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

 

 We work online and offline to help you craft solutions for buying, selling & financing your projects.

 

 

Considering the fact that our engagement only expands your options and that our fees are 99% 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. Securities Sales and Direct Placement of debt & equity with institutional investors
  30. Asset monitoring
  31. Investor Relations
  32. Distribution of 1099’s or K1’s to Investors

FEES:

  • Upon OSC’s acceptance of a transaction, we charge a non-refundable Engagement Fee (the “Engagement Fee”) depending on the complexity of the offering.
  • Once your Offering is ready to submit to FINRA a Broker/Dealer submission fee of $10,000 is due.
  • At the time of closing the Company will pay “Success Fees” out of the escrow proceeds, as specified in the Engagement Letter and the Broker/Dealer Securities Sales Agreement.  For an equity raise the complete process generally cost between 8% to 10% of the amount of capital raised.