How to Structure Real Estate Deals with Investors [And Actually Raise Capital]

[@serg_lupescu]

Content is on point brother! Love this new style format you have going on! 💯🔥

[@TylerCauble]

Glad you’re enjoying it!

[@braydenmiller8295]

Relationships with lenders are supper important when you’re trying to get the best rate on these repositioning investment strategies, typically these deals would be considered “conventional-plus” or even high-yield.

[@TylerCauble]

100% - best way to look at your lender is as the biggest partner you have in the deal (because financially they are)

[@adamhudsonofficial]

Great video Tyler. Thank you! Two questions. 1) is the preferred return target annual or over total over the entire 5 year time horizon? 2) on syndication deals, of an investor is foreign (based in Australia for example) are the excluded from the limit of 30 investors? For example, could you have 30 US investors and 5 from other countries that are not US citizens/residents? Thanks again. Awesome content and I love your work!

[@TylerCauble]

I appreciate it, Adam! 1) our preferred return runs for as long as their equity is in the deal, so it could be as short as 24 months if we're able to refinance and return their capital or it could run for the duration of the project 2) I'm not sure about that - we've had investors from Australia and Canada in our deals surpass that number and not be an issue on my end. Would have to confirm with my attorney, though. There is more paperwork for foreign investors but nothing that can't be worked around.

[@adamhudsonofficial]

@@TylerCauble thank you! I love that you respond to these comments. Just to clarify though, the preferred returns are paid annually while you’re in the investment? And are they capitalised until the end, or paid along the way?

[@TylerCauble]

@@adamhudsonofficial for sure! Our preferred returns are on an accrual basis, so they don’t get paid out until there’s cash flow to pay it and investors will get paid their prefs until we’ve returned 100% of their initial equity investment. After that, it’s just an equity split

[@graham_storey]

At the end when you’re talking about your structure are you saying you give away 80% to investors and keep 20%?

[@TylerCauble]

That’s correct - we’re selling that 80% of the deal to the investors. I also co-invest alongside my investors as an LP, so I will own a prorata share of the 80%, too

[@clevelandsainpreux]

Great content. Were you meaning to add a video at 3:21? "Little to no money down real estate deal."

[@TylerCauble]

Yep - it's there! For some reason it's now showing up on mobile but it does show on my computer. Here's the link: kzbin.info/www/bejne/fKDIaINvet1_aMk

[@clevelandsainpreux]

​@@TylerCauble thank you. I appreciate you. I enjoy seeing you out and about. Keep it up bruh 💪🏿

[@TylerCauble]

Absolutely! Appreciate you, too - glad you’re enjoying the videos

[@Projectsalvo184]

when you say "8% preferred return over 5 years" does that mean you are paying them 8% preferred return on their capital invested for ALL 5 years, every year? Or take 5 years to return the 8% on their initial capital invested? Thank you in advance

[@Projectsalvo184]

I found the answer in the comments. Thank you Tyler!

[@TylerCauble]

Of course! Glad you found it. Let me know if you have any other questions

[@scottfabyanic3546]

Smart guy

[@TylerCauble]

👊🏼👊🏼

[@venegasroberto]

Just wanted to drop a thank you for creating such amazing video content. I've been a regular viewer and I've learned so much from your insights. In fact, your videos played a part in my recent decision to purchase a commercial property near the development you're working on in Rossville. I'm really excited about this investment and wanted to reach out to see if there's any way I can contribute or add value to the project. Let me know if there's an opportunity for collaboration or if there's anything specific you're looking for. Keep up the fantastic work, and looking forward to hearing from you!

[@TylerCauble]

That's awesome to hear, Roberto! Would love to hear more about the property you're working on down there. Just got back from a trip to the Mill yesterday.

[@venegasroberto]

​@@TylerCauble Absolutely, it will be great to connect next time you're here. I'm excited about the Mill project! I'd love to see how I can contribute and add value to it.

[@TylerCauble]

@@venegasroberto headed in town today. Shoot me an email if you’re around [e-mail]

[@Cyber_Samurai]

Yes, investors want ROI on their money. There's a correlation between jobs and commercial real estate, and a lot of people are getting laid off from their jobs, especially in tech. Aren't you worried?

[@TylerCauble]

For sure they do. And no - not really. We're in the Nashville market, which is still moving very fast. Probably a struggle in metro's like San Francisco and Chicago to get deals done, but we aren't experiencing that (at least, not yet). Will there be a slowdown? Likely, but nothing major.

[@Cyber_Samurai]

@@TylerCauble The Federal Reserve is aggressively raising interest rates to combat inflation, smaller banks are exposed to commercial real estate loans, when it's time to refinance, what's going to happen?

[@TylerCauble]

@@Cyber_Samurai your interest rates will be higher! Anyone that isn’t prepared for that won’t be having a good time

[@Buckaroo801]

I don’t get the bleeping. You can disclose it legally.

[@TylerCauble]

Maybe, but it’s a 506b syndication and it hasn’t closed out, so I don’t take chances with the SEC

[@TylerCauble]

I've just launched a FREE crash course on commercial real estate investing for beginners. Check it out at www.tylercauble.com/course

[@jessecristobal5703]

L

[@gabbyperena]

❤ist da vie te viel❤🎉❤🎉🎉🎉