Tag Archive: Steve LaTerra

  1. Homeownership Rates, Economic Recovery, and Rental Market Clarity At IMN Miami 2018

    The hot and humid Miami weather didn’t stop a lively mix of homebuilders, land developers, and capital sources from being fully engaged with the all of the topics covered at IMN Miami. The key reoccurring theme throughout the day was the remaining runway in the current recovery—when does the market weaken? Our team critiqued this topic, and also dove into desirable geographies, construction costs, interest rates, the rental industry, and more.

    Macro Overview

    Ali Wolf, Director, Economic Research

    We are now in the second longest economic recovery on record and inflation is on the rise. The good news is that disposable income is at an all-time high and the 10-year bond is still below 3%. The not-so-good news is that rents and mortgage rates are inching up. Debt is also up, and while this is not not necessarily bad, the higher interest rates are a warning sign. Tracking mortgage, auto loans, and consumer debt delinquencies also give early warning signs, but there’s nothing to be worried about yet.

    Public and Private Homebuilder Panel

    Steve LaTerra, Managing Director

    Steve asked the room, “How do private builders compete against public builders?” Builders such as Van Metre Homes have created panelization plants to reduce cycle times, and McGuinn Homes has created deeper capital relationships.

    The second major question was, “Which geographies are desirable?” Since the answer depends on both job growth and limited entitlement difficulties, California does not make the cut. Instead, Steve said to look to the area that falls between urban and suburban zones and stay away from nationals.

    Building Single Family for Rent (SFR) and Building to Sell:  Homebuilder and Financier Perspectives 

    Moderated by Tim Sullivan, Managing Principal

    The origins of the Single Family Rental (SFR) industry came from investors’ desire to buy assets at a deep discount. Nobody was sure the space would work, and the fallback strategy was to sell the rental homes to the renters or other buyers, but now institutional capital accepts SFR. The “older” age of many of the SFR homes (1960 to 1990) requires more maintenance and capex reserves which is costlier to own, driving down yields.  This was the “miss” when many investors got into the space in 2008-2010. Yields are now at 5.6 to 5.9% (they were 50% plus higher in the early days) and price appreciation has been solid. The “fix-and-flip” concept still  works in lower priced markets (where homes are priced under $200k). Lenders in the space may loan from $20k to $40k per month to fix-and-flip operators (per Matt Neisser of Lending One). Some investment groups are buying new homes from homebuilders, which can help the homebuilder move inventory faster.

    The most solid markets for SFRs include: Jacksonville, Raleigh Durham, Orlando, Tampa, and Atlanta.

    Our top tips and tricks for SFRs:

    • Strong property managers are a must
    • Love your banker and tell your story clearly
    • Understand your local market
    • Be careful of expecting a lot more HPA
    General Market Outlook Panel

    Moderated by Jeff Meyers, President

    Homeownership

    Homeownership rates have not yet hit their peak and will remain fairly flat. Prices are now back to the previous peak in other markets, which makes things challenging as rates go up. In terms of starts compared to peaks, we should be at 800K new home sales. The rise of the outer suburbs is key to this growth: Suburbs are growing faster than cities and this will drive our opportunities over the next 10 years.

    Relentless Rise In Costs & Home Prices

    Costs have been rising across the board for development loans, concrete, and other materials. Home prices have also been rising but have been shielded by low mortgage rates. It’s important to point out that the process to get a mortgage is more difficult now. Millennials are unable to come up with enough down payment and have been relying on assistance from friends and family. We all know that building more housing will help drive down costs, but we still need to know where new starts will come from. Currently, there isn’t any developable land, and we likely won’t get back to the level we had before.

    Join Us At The Next IMN

    The next IMN will be in Las Vegas on September 24-25, where we will continue the conversation around private equity, debt, and joint venture financing. Register before August 17th to catch the homebuilder early bird registration discount. We hope to see you there!

  2. All in the Family… Office

    Family Offices are one of the least understood capital sources in the real estate industry. While there is an adage that says, “if you know one family office, then you know one family office”, our Managing Director of Capital Markets, Steve La Terra, discovered some commonalities while conducting a deep dive analysis into this component of the real estate private equity world.

    WHAT’S A FAMILY OFFICE?

    Family Offices (FO) are typically established to diversify a family’s wealth beyond the business that created their wealth. Often established by an entrepreneurial patriarch or matriarch to provide for future generations, FOs seek to create generational wealth. Establishing a FO generally makes financial sense when there is $100M or more of investable capital. It is common to find FOs investing for the long-term, which makes real estate a viable option.

    Family Offices can be categorized as either Single Family Offices (SFO) or Multi-Family Offices (MFO). A SFO is limited to one family, although may include multiple generations. Investment decisions within a SFO are generally made by an individual or a small number of siblings. A MFO is a collection of two or more families that invest together. They tend to operate by committee with consultants such as accountants or attorneys providing deal flow, expertise, and professional services.

    KEY INSIGHTS INTO FOs

    • Family dynamics matter. The internal family dynamics play an important role in the investment strategy of a FO. Anything from who the decision makers are to how they all get along can impact how their capital is deployed.
    • The first rule. When it comes to investing, the first rule for FOs is don’t lose principal. The second rule is to understand what the family wants first, then make a pitch, but only if your opportunity aligns with the family’s goals.
    • Plenty out there, if you can find them. There are 3,000 to 5,000 SFOs and 10,000 MFOs in the United States today. Most FOs are relationship-based, do not market themselves, and prefer anonymity.
    • Reputation is everything. When considering a new operator relationship, FOs will look to reputation and established competence as primary drivers. FOs will do extensive diligence on a new operator through their trusted advisers and their networks of high net worth friends/investors.
    • Keep a Plan B. A FOs investment goals can change suddenly, especially when family dynamics change (i.e. marriage, divorce, etc.) or during the period of a generational shift leading to a shift in investment appetite.  Always have a Plan B.
    • Communication is key. It should also be noted that the Family Office universe is quite small and word travels fast, so make sure you provide prompt, honest communication, especially when things don’t turn out as planned. FOs can be very understanding and sympathetic partners, but not if they feel that information is being withheld.
    • What makes it worth it. FOs can be reliable partners who will often open doors to additional capital sources, make investment decisions rapidly, can be very patient and have return requirements that may be more flexible than traditional private equity sources.
    Please contact us for more insights into the dynamics of Family Offices.
    Steve LaTerra, Managing Director – Advisory Phoenix
    EMAIL STEVE | STEVE’S PROFILE 

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  3. Finally! The Comeback Of The Bubble Markets

    Good and Hot. Perhaps those are two words you didn’t think you’d hear when talking about the quintessential bubble markets, but that’s what we are finally seeing. Celebrating the 8th year of the economic expansion, our Manager of Housing Economics, Ali Wolf, studied where these markets currently stand.

    RIVERSIDE IS HOT

    Looking at the Riverside, CA market from the previous peak to where we are today, it looks like the market is far from recovered. Our local expert and Senior Vice President of Advisory, Michelle Weedon, believes this can be a bit misleading. “While the chart below looks like Riverside prices are still 16% lower than the previous peak, this is largely due to changing product. In the boom years, McMansions were the name of the game, supported by investors and loose lending. What we are seeing today is smaller, high density product,” she explains. “The Riverside market is hot.”

    Fast facts:

    • A large majority of the development in Riverside is happening along the 15-corridor. Unlike the focus of “drive to qualify” during the last boom, denser product in closer-in markets have recently been selling like hotcakes. We’ve seen particular strength in Corona, the Dairylands, and Temecula/Murrieta.
    • Buyer demand in Riverside is largely fueled by locals that include a combination of first-time buyers, blue collar employees, and warehouse workers. Helping with domestic demand, about 13 mega warehouse facilities with 1 million or more square feet were built in the Inland Empire from 2010 to 2016, according to CBRE.
    • A well-executed product and price points near FHA limits can drive absorption up to 8 sales per month.

    MORE SEGMENTS ARE SELLING IN LAS VEGAS 

    The Las Vegas market had a better than expected spring selling season this year. Last year in May, the market was selling on average 3.0 sales per month for active projects. Fast forward to 2017, the market is averaging closer to 4.0 sales per month.

    Our Las Vegas specialist, JT Schwartz, explained that the hockey stick effect can be attributed to builders expanding their product offerings and taking a chance on varying market segments. “After the housing crash, product targeted towards first-time buyers seemed to keep the market running. Recently we’ve seen this shift to include more buyer types: first-time, move-up, luxury, active adult, and even some vacation home communities are now offered. This is contributing to the higher sales volume and sales rates.”

    Pulling the data in Zonda, we can easily see an example of JT’s analysis. In 2015, there was not a single actively selling active adult community in Las Vegas. By the end of 2016, that number had increased to seven actively selling product series with several more planned in 2017.

    ECONOMIC GROWTH BEHIND ORLANDO’S SUCCESS

    In a metro that is synonymous with tourism (much like Houston is with oil), it can be surprising to hear that Orlando’s diversity is a top reason for the market’s success. Local officials have worked to attract new and different industries through business incentives, and the efforts have paid off. Recently, both Lockheed Martin and Orlando Health announced expansion plans in the market.

    Our Florida guru, Mike Timmerman, said, “We are seeing both the good and the bad that comes with local growth. With increased demand comes a strengthening new home market that is also met with rising costs (labor, land, and materials). These factors have pushed prices of newly built homes up quickly. Higher new home prices help the existing market, where more buyers are regaining equity in their homes and some are moving up. But even with the rising tide phenomenon, there’s definitely sticker shock for some locals.”

    WE CAN FINALLY CALL PHOENIX’S HOUSING MARKET “GOOD”

    2017 marked a shift in Phoenix’s housing market. Our Managing Director and authority on Phoenix, Steve LaTerra, explained, “The strength in Phoenix is no longer just the city center and infill. The sales pace in the periphery is also good. This is the change we’ve been waiting for.” Steve is encouraged by this trend, because now it makes sense for production builders to move further from the core. “We have had very few lots developed over the past 10 years in the periphery,” he continues. “While we recognize the peak was an exceptional time in Phoenix’s history, single-family permits are down 70% from that level.”

    The dearth of new development in Phoenix has contributed to price appreciation (remember when you could buy a house in Phoenix for $150K?) and a mismatch between supply and demand. Phoenix is now at full employment and continues to add jobs at a 2.4% annual clip. The economy is strong enough to absorb additional supply.

    Contact us to discuss how we can help define the best markets for your operation.

    Ali Wolf, Manager of Housing Economics
    EMAIL ALI  |  ALI’S PROFILE 

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  4. Where Is The Cheap Real Estate Capital?

    The cost of capital is helping keep affordable housing out of the hands of consumers. It is not news that housing markets throughout the country are undersupplied with new product and that demand generally exceeds supply. In some cases, home prices have been pushed above previous peaks, which is making room for apartment rent increases and a general feeling that homeownership rates will permanently shift lower. The challenge is that affordable new homes are not being built. Our Managing Director Steve LaTerra argues that if significant amounts of affordable for sale housing were available in most metro areas, the homeownership rate would be significantly higher. Why can’t our industry produce product that the market desperately needs?

    Over the last 30 years there have typically been low cost providers of capital for developers and homebuilders to access, such as savings and loans (S&L) or banks supported by government insurance programs. With this inexpensive capital, builders and developers could limit the amount of expensive equity required to finance a deal and deliver appropriate risk adjusted returns to their capital partners. Today, there are no S&Ls and there is preciously little available bank debt to support new housing. Equity return requirements are simply not achievable without some form of affordable leverage. To make matters worse, reserve requirements resulting from the Dodd-Frank Act are higher than ever, which will keep banks out of the market for the foreseeable future. So, where does this leave us?

    As it stands, inventory levels are lacking and they are not expected to improve quickly enough to offset demand. This puts upward pressure on pricing and decreases the risk of investing in the space, but does little to address the country’s housing shortage. Private lenders have emerged to fill the void left by traditional banks, but private loans are not much cheaper than equity and are not a permanent solution to the issue. Unfortunately, the answer is likely political.

    Banks want to do your deal. They want to lend to home builders and developers. After all, in the 1990s, acquisition, development, and construction loans (AD&C) accounted for 7-10% of the balance sheet of the largest banks in the country, and these loans were highly profitable. Banks recognize this, and in some cases bankers are as frustrated with the current situation as developers and builders. However, a banker’s ability to provide AD&C money (as it’s known) is limited by regulations of the Federal Government. The regulating agencies (FDIC and OCC) have placed significantly limiting restrictions on banks, which some might say have unnecessarily limited lending to the home building industry.

    With the election of Donald Trump, a free market proponent, there is some question as to the future of GSEs, like Fannie Mae and Freddie Mac. Without these programs in place, lending to the home building industry would likely be even more expensive. Some may overreact to the threat of a system overhaul; however, let’s not forget that Trump is a real estate entrepreneur and will likely support policies that are ultimately favorable to our business. Time will tell, but it’s clearly too soon to assume the worst.

    Contact us to discuss how we can help you navigate the world of capital.

    Steve LaTerra, Managing Director – Advisory Phoenix
    EMAIL STEVE | STEVE’S PROFILE 

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  5. Residential is the Capitol of Capital

    In June 2016, Meyers Research completed an extensive survey of the real estate capital markets that indicates that for the first time in years, the residential sector is poised for sizable gains relative to the more traditional income-producing asset classes. In fact, we expect the market for real estate capital over the next 12-24 months will change significantly. Led by our Managing Director of Advisory Steve LaTerra, we surveyed both debt and equity sources and compared the responses to past Meyers Research surveys to extrapolate financing trends and patterns. We then analyzed our survey within the context of institutional capital flows and fundraising over the last few years and considered the performance of private equity investments since 2010. The paragraphs below provide additional detail from our research.

    For starters, the amount of foreign capital coming to the US is currently spiking, stemming from a confluence of Chinese economic uncertainty and FIRPTA incentives to BREXIT-caused uncertainty in the European markets. These are temporary conditions but have caused a spike in flight capital that seeks security in the face of elevated domestic market risks. Likely, foreign capital has under-priced the risk of real estate investments in the U.S., resulting in irrationally low cap rates. This has made it difficult for U.S.-based funds to compete for high profile income-producing assets in gateway cities.

    In response, U.S.-based funds have temporarily broadened their scopes and are looking where foreign funds are not. Scopes have expanded both geographically and by asset class, but all are seeking yield. Opportunistic fundraising has been increasing at the expense of Core funds within the U.S. The most overlooked of all asset classes is land and residential, mostly because current returns aren’t typically available and a “mid-to-high teens” return was not enough of an incentive over the last few years. Today, we find ourselves in a fundamentally under-supplied residential market, with the capital markets deserving much of the blame. The mortgage industry is broken at the consumer level, BASEL III has disincented commercial banks from lending to developers and home builders, and private equity has ignored residential in favor of the mid-teen returns offered by the multi-family and commercial sectors.

    Over the next several quarters, experts expect a sharp fall off in the returns experienced in commercial real estate as the flow of unusually motivated international money slows and more “normal” conditions return. To gain truly opportunistic returns, funds must accept more risk and expand their investment profile. Multi-family has some runway left, but will eventually succumb to its own success by becoming overpriced, while distressed funds will struggle to find acceptable opportunities. Residential will likely stand alone as the most attractive opportunistic real estate play, as prices have proven to be sticky and the lack of supply has made a downside bet tough to accept.

    The message is that residential is finally taking its appropriate position as an attractive alternative asset investment that can be proven by long term fundamentals rather than institutional capital flows. While the capital markets will take some time to capitulate, they will eventually get there. It may be more difficult than ever to secure capital, but capital market conditions are becoming supportive and funds will eventually find a home in residential (pun intended). If your investment opportunity has struggled to obtain financing, don’t lose faith. Now is the time to redouble your efforts.

    Contact us to discuss how we can help with your understanding of the capital markets.

    Steve LaTerra, Managing Director – Advisory Phoenix
    EMAIL STEVE | STEVE’S PROFILE 

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  6. In A New York Minute

    The market outlook from a capital source perspective is changing, even more so than we initially thought. In December 2015, Meyers Research assembled more than a dozen high-level institutional real estate investors in a New York City setting for an open discussion about the nature of real estate capital flows, with a specific focus on the residential sector. At that time, there was broad consensus that a national economic recession was expected within three years, and that investments in land and residential must be short-term in nature or they would not happen. The thought that investing in longer-term deals where the exit strategy coincides with a recession is bad business. To exacerbate the issue, other cash flowing real estate asset classes produced record returns in 2015, making land and residential investments less attractive.

    However, some things changed during the first quarter of 2016. At the Meyers Research Frame breakfast in New York in March 2016, we again assembled a collection of institutional real estate investors and found a notable shift in perception, including the following:

    • The train may arrive early: While a national economic recession is still on the horizon, the recession is now expected within the next two years, which makes investing in a residential land opportunity more interesting.
    • Possible repricing ahead: In fact, some groups are suggesting that land will be “on sale” within the next 6-18 months. Widespread distress is not expected, but neither are decreasing home prices. It’s simply an expectation that some return-based land owners may be experiencing deal fatigue and be willing to accept a modest return rather than endure another cycle.
    • “Multiple” Opportunities: Some of the larger, more patient capital sources are expecting this to be an attractive buy opportunity where they can “play for the multiple”. The challenge is that few of these investors are looking to develop land. The heavy capital requirements of land development are not justifiable today and banks remain tepid toward land development. It is not a stretch to expect the for-sale market to remain undersupplied, or at least not oversupplied, for a protracted period. This condition surely will reduce the risk of capital loss for patient investors but make things challenging for homebuilders who need land as their most basic raw material.

    Wall Street has been overpricing the risk associated with public homebuilders for several months, in many cases due to growth strategies that do not seem feasible.  The argument can be made that public builders have a unique opportunity to capitalize on this situation by becoming land developers. With access to inexpensive corporate debt, land development may just provide an avenue for the bottom line growth that “The Street” so desperately wants. While this may seem radical in an era of “land light” strategies, there appears to be mounting evidence to support this theory.

    Steve La Terra, Managing Director – Advisory Phoenix
    EMAIL STEVE  |  STEVE’S PROFILE 

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  7. If You Want Money, Ask for Advice; If You Want Advice, Ask for Money

    There are a number of things that you can and should do as you venture out in your capital search. In our on-going capital markets series, Steve La Terra, Managing Director of Advisory, provides insights learned over a 20-year career as a real estate investor.  During his career, he has raised private investment capital, private equity, institutional capital and debt.  His insights may be valuable as you look to finance your next investment opportunity.

    The previous blogs in this series highlighted the various investor “types” and illustrated how your deal will be “viewed and processed” by a potential capital source. This blog provides a few insights that should make your capital search more efficient and successful.  These insights and techniques can be employed by almost anyone, and have been proven to increase the chances of a successful raise substantially if diligently followed. They include:

    • Keep detailed notes – seems simple, but it’s not.  Be sure to include names, titles, contact info, times and dates contacted, method of contact (email, phone, etc.), unique insights that were shared, etc.  Reference these notes frequently.  If you make contact with a potential capital source, make sure to ask about investment preferences in terms of dollars, deal types, structures, time frames, etc.
    • Ask for referrals – you will be turned down more than you ever imagined. KEEP GOING…“No” doesn’t mean your deal isn’t worthy, it just isn’t right for everyone.  If you receive a “No”, always ask: “I understand my deal is not right for you, but would you recommend that I speak with anyone (warm referral)?” and/or “Is there something about my deal that would prevent you from recommending it to someone else?”  If you receive a “Yes”, it is especially important to ask for referrals since they are already bought into your deal.
    • Provide a sophisticated cash flow – your cash flow needs to demonstrate competence and understanding of the interdependence of inputs. Include an inputs page that shows the impact of various adjustments to the inputs (sensitivity analysis) on returns.
    • Packaging – uderwrite your deal first.  Have a Market Study, Appraisal and evidence of the deal’s feasibility. Don’t forward a broker package without analysis. Send your presentation in one .pdf attachment that showcases the relevant facts up front and in a concise manner. Don’t overly explain or justify in a package. Be honest. Exaggerated claims may disqualify your deal as being out of touch.
    • Personal presentations – if you are asked to present your deal in person or over the phone, begin with the story and quickly explain the financials. Every source wants to make sure that the story is compelling and that the returns align with the story and perceived risks.
    • Be transparent – if the source is still on the phone after a few minutes, they will ask questions. Make sure that you explain both positive and negative aspects of your deal. No deal is perfect and capital recognizes this. If your conversation moves to the cash flow, make sure you can easily explain all of your assumptions.

    Realize that your relationship with a capital partner is a two-way street.  While capital may initially have more leverage than you as an operator, you will make the ultimate call as to whom you invite into the deal.  It is important to have an alignment of vision, not just an alignment of interest with your capital partner. A good capital partner is nirvana; a bad capital partner can devastate a business. Choose your partner wisely and make sure there is a fit.

    Contact us to discuss how we can help with your next real estate development.

    Steve La Terra, Managing Director – Advisory Phoenix
    EMAIL STEVE  |  STEVE’S PROFILE 

    SEE ALL RECENT BLOG POSTS

  8. My Deal Is So Awesome – Why Isn’t It Funded Yet?

    Knowing how capital sources make decisions and analyze investment risk provides unique advantages to operators seeking capital.  As our Managing Director Steve La Terra highlights, capital providers tend to have a formulaic approach and view opportunities within narrow investment parameters.  This makes some sense when you understand that capital providers often see time (a non-renewable resource) as more valuable than money (a renewable resource). This is also why you may receive a very quick “no” when pitching a deal but getting to “yes” takes time.  With decades of experience with private equity, institutional lenders and other large-scale real estate capital sources, Meyers Research has great perspective on the capital markets.  Below we have assembled a few insights that may prove valuable to you when making a pitch for capital, including:

    • Capital Sources tend to view risk within distinct “silos” that can be considered separately, including operator risk, development risk, entitlement risk and market risk.  Market risk tends to be the most mysterious of these and it is often where the most attention is paid.
    • Every deal that receives funding has a compelling “story”, which may be a unique market factor or operator relationship, but rarely is a particularly attractive development proposition or entitlement situation.
    • If you make it past the first round of questions, your deal has gained an advocate within the capital source.  While you may not feel as though your contact is supportive of your deal, these advocates are responsible for “selling” your deal internally and so they are very focused on understanding all risk factors and downside scenarios.  Know your advocate and help them in any way possible.
    • Your deal will endure several layers of scrutiny from initial and cursory to intense and detailed.  Every “what if” scenario will be considered and your advocate will have to answer all of the questions.  If your advocate is embarrassed because they don’t have all the answers, your deal will not get funded.  Don’t try to hide details.
    • Your deal will be competing with other opportunities for the time and attention of the investment team.  While your deal may be perfectly packaged and nearly ideal in your mind, if a “better story” comes along, you may be on the losing end for no good reason.

    The good news is that once you have established a successful track record with a capital source, you have established a renewable “story” (relationship), have a successful advocate and you have addressed the operator risk component of the underwriting process.   However, capital sources change their appetite frequently, so keeping your capital raising skills sharp will be an important advantage for your company.

    Contact us to discuss how we can help with your next real estate development.

    Steve La Terra, Managing Director – Advisory Phoenix
    EMAIL STEVE  |  STEVE’S PROFILE

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  9. A Needle In The Paystack

    Chasing money to fund your real estate deal is hard, exhausting, exhilarating, frustrating, exciting and almost every other superlative emotion on the spectrum.  If you are a real estate entrepreneur, you probably enjoy these sorts of highs and lows, and capital-raising can align with these tendencies.  As our Managing Director Steve La Terra points out, if you are persistent and know where to look, you will be successful.  We at Meyers Research have spent approximately 30 years working with a variety capital providers and it is clear that capital sources fall into distinct buckets, each with their own nuance.  While not all inclusive, the segments below may help you prepare for your capital-raising adventure:

    • Banks – Heavily regulated lenders that provide acquisition, development and construction loans. Often less than $5 million per borrower/deal.
    • Friends and Family – Early stage equity providers that know, trust and believe in the operator.  Profit driven, not return (IRR) driven, and provide small amounts of capital ($25,000 to $500,000). Note: pay attention to securities laws when raising this type of capital.
    • High Net Worth Individuals – Wealthy individuals capable of writing multi-million dollar checks.  Typically finance more established companies and like to do repeat business.
    • Private Money Lenders – Also known as hard-money lenders.  Unregulated capital sources that provide low leverage, short terms and high rates.  However, rapid approvals are available.
    • Real Estate Private Equity Sources – Institutional (large and heavily structured) debt and equity. Not typically interested in deals less than $10 million.  Best for established companies that can afford a 5% to 10% co-investment of funds.
    • LP’s (Limited Partners) – Pension funds, university endowments, insurance companies, etc. that invest with platforms like private equity companies rather than finance deals or operators.
    • Wealth Management Companies – Companies that manage the portfolios of high net worth individuals/accredited investors and may make investments in real estate to diversify their client’s portfolios.
    • Family Offices – Super rich families that have established companies to manage their wealth.  Hard to find and can change direction rapidly.

    The secrets to a successful capital raise are persistence and targeting the right sources.  If your 50th target source would say “yes” to your deal and you stopped looking at #49, you may have missed a career changing opportunity.  The “right” sources for your deal/company largely depend on the growth stage of your company and the nature of the real estate deal.  Knowing how you “fit” and aligning your outreach strategy accordingly will give you the best chance for success.

    Steve La Terra, Managing Director – Advisory Phoenix
    EMAIL STEVE  |  STEVE’S PROFILE

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  10. Meyers Research Adds Industry Veteran Steve LaTerra

    We are pleased to announce that Steve LaTerra is joining our team as a Managing Director in the Advisory Practice. Steve is an long time industry veteran that will focus on propelling the company’s advisory services business.

    We are pleased that Steve has decided to come home to Meyers, where he began his real estate career in the 1980s as an analyst based out of the Los Angeles office. We have worked with Steve over the years and we are excited to continue to broaden our leadership team.

    – Jeff Meyers, President

    Steve LaTerra, Managing Director – Advisory Phoenix
    EMAIL STEVE  |  STEVE’S PROFILE 

    Steve has spent the majority of his career as a real estate analyst and investor. Most recently he owned his own land investment and lot banking company, where he accumulated a portfolio of more than 1,000 lots throughout Arizona. Previously, he served in Principal and Senior Executive positions with Land Advisors Capital, APEX Capital and Acacia Capital Corporation, where he collectively purchased or funded more than 20,000 residential lots throughout the United States. Steve is a Full Member of the Urban Land Institute and has served as the Chair of the Residential Neighborhood Development Council at the National level and is the current Chair of ULI Arizona.  He has served on the Real Estate Investment Advisory Council and has been actively involved with several charitable organizations including the Executive Council, EC70 Charities (formerly Boys and Girls Clubs) and the National Kidney Foundation of Arizona.

    Steve’s background in land development and working with providers of Capital will help us better serve our clients in these spaces. Steve also brings tremendous energy and enthusiasm to our team and he will elevate our capabilities.

    – Tim Sullivan, Practice Leader

    Tim Sullivan, Practice Leader – Advisory San Diego
    EMAIL TIM  |  TIM’S PROFILE

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