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 Engel & Völkers, Stonegate Global, Open Source Capital, Rainmaker Securities and the JOBS Act, we provide a unique service that connects sophisticated investors with experienced real estate operators, particularly those involved in rental properties and the development and construction business.
Our business is the structuring and syndication of real estate investments and the associated asset management. We support investments in senior loans, construction loans, dequity loans, preferred equity and co-sponsor equity- with a focus on the financing of construction and value-add projects for developers. Capital is provided by institutional investors, family offices and high net worth individuals. Our customers profit directly from our worldwide network and the local market access of Engel & Völkers.
Given the specific details of a project we can help raise the capital needed to finance complex real estate deals. The portal participants combined expertise of originating, vetting, structuring, underwriting, and marketing FINRA approved real estate securities helps investors to act quickly when considering various investment opportunities. The 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:
- Project Financial Modeling and Pricing
- Real Estate Sales and Leasing
- Internet Marketing
- Property Management
- Broker Opinion Letters
- Architectural Plan Review
- Construction cost review
- Developing Pitch Decks
- Underwriting and Stress Testing
- Setting up a “SPV” as Issuer
- Developing Private Placement Memorandums for (Regulation D 506c Offerings)
- Developing Trustee Agreements
- Developing Term Sheets
- Developing Mortgage and Note Terms
- Developing Indenture Terms and Agreements
- Submissions to Broker/Dealer FINRA review
- Portal Placement and Maintenance
- Expenses for travel, due diligence expenses and investor meeting
- Lead Investor Sourcing
- Coordinating Due Diligence
- Negotiating Term Sheets
- Developing Terms of Operating Agreement
- Developing Terms of (Investor/Developer) Construction Agreements
- Developing Terms of (Investor/Developer) Property Management Agreements
- Coordinating the Closing
- Project monitoring
- Transaction Management and Coordination of Funds Disbursement
- Securities Sales and Direct Placement of debt & equity with institutional investors
- Asset monitoring
- Investor Relations
- Distribution of 1099’s or K1’s to Investors
- Upon OSC’s acceptance of a transaction, we charge a non-refundable Engagement Fee between $5 and $15 thousand dollars (the “Engagement Fee”) depending on the complexity of the offering.
- Upon the Company closing any real estate Sale, Lease, or Financing Agreement, the Company will pay the success fees as specified in the accepted Project Budget and Term Sheet.