Real estate capital raising and syndication
Multifamily, Logistics and Private Credit: An Investor Mandate
Strategic Investments in Multifamily Real Estate, Logistics & Finance Lending - Investor Mandate
Real estate sponsors, co-GP candidates and fund managers who want to see how a family office investor frames a mandate across multifamily, logistics and lending.
In their words
"I took the path of being think global, do local, and since I moved from Chicago to Arizona, I thought I'd focus on Arizona real estate."
"The first rule of thumb is like, okay, I'm lending you money, but how do I get my money back?."
"If it's an equity kicker, like a warrant, that's interesting."
What this talk covers
The speaker built a real estate background at GE Capital, then chose to focus on one market. After moving from Chicago to Arizona, they concentrated on value add multifamily in buildings from 1960 to 1980. The goal was to turn older product into newer B+ product for renters moving to Arizona at higher salaries. Investing in 42 states, they said, made it hard to become an expert in anything.
The panel also covers what the speaker wants now. They are exploring co-GP partnerships with other family offices, looking at logistics and 3PLs, and favor lending over owning assets. On the lending side, the first question is how the money comes back in three to five years. The speaker does not see a takeout by another hard money lender as a strong plan. An equity kicker such as a warrant is more interesting.
Facts and figures
- The speaker's value add multifamily work targeted buildings built between 1960 and 1980.
- The speaker has been in real estate for 30 years across commercial and residential product types.
- The speaker said 12 million square feet of industrial space is under construction in Arizona, and that their brokerage sees maybe a 10 to 12% decline in prices.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Strategic Investments in Multifamily Real Estate, Logistics & Finance Lending - Investor Mandate. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around co-GP partnership structures, equity kicker terms and lending fund structures. Do not use AI to write your own legal agreements.
What stood out
- Pick a market and go deep. The speaker moved from Chicago to Arizona and focused there. Being spread across 42 states made it hard to be an expert, so they took a think global, do local approach.
- Value add in a defined niche. The niche was buildings from 1960 to 1980. The work was turning older product into newer B+ product for renters moving to Arizona at higher salaries.
- Lenders start with repayment. The first rule of thumb for a lender is how to get the money back. If the exit is another hard money lender, the speaker does not see a great business plan.
- Equity kickers can add interest. The speaker called an equity kicker such as a warrant interesting.
- Mandate follows existing strengths. After a heavy post-COVID push, the speaker reviewed who they invest in, why and what. They now look for income and opportunities that complement current holdings, including logistics and lending.
Related questions
- How do I raise capital for a self-storage acquisition?Find the property first, then raise the equity against it.
- Is an acquisition fee in a syndication fair to investors?It can be fair, but only if the fee is modest, clearly disclosed and the sponsor still has real money at risk.
- How can I raise capital for land development?To raise capital for land development, I start with the structure.
Questions about this video
What real estate niche does the speaker focus on?
The speaker focuses on value add multifamily in Arizona, in buildings from 1960 to 1980. They upgrade older product into newer B+ product for renters moving to Arizona at higher salaries.
What does the speaker want from partners now?
They are looking for co-sponsors and family offices to partner with, including co-GP arrangements. They say they can add knowledge as well as a little capital.
Why does the speaker like lending?
They find the lending side of the table more interesting than the asset side. Their most recent investment was a fund that lends in industrial and multifamily, where they moved from limited partner to GP.
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