Capital Funding Proposals for Commercial Real Estate Development Projects & Programs

You have a commercial real estate project and you need to create a capital funding proposal for the construction loan, the permanent/mini-perm loan and the equity gap and have limited resources.  You are thinking you need to post on LoopNet or the Real Estate Institute as a means of acquiring the equity gap.  The real issues are:

• Do you realize that investment bankers can be of great assistance in this pursuit?  Today's investment banking firm employs specialists that work in a given area (e.g.: hotels, senior housing, retail and multifamily housing, to name a few.) so you can have more targeted assistance in getting the transaction done.

• Understanding the investor's job does not include deciphering what you really are trying to convey in your financing package.  You must have a clear program that is void of grammatical errors, funding gaps and/or sources of funding that are nebulous in nature.

• If you are going to insist on trying to get a transaction funded that is posted on the Internet, how will you make your project stand out from the pack and stand up to definitive investor scrutiny?  This is the biggest issue you will face and you should obtain professional help if you are uncertain as to how to proceed because there are no second chances to make a good first impression with an institutional investor.