Working with institutional capital on Multifamily

The Cashflow Project

Join Duc Ong (The Cashflow Project) and Ryan Webster as they chat about working with institutional capital on Multifamily. Ryan is an award-winning home builder, experienced real estate professional, and entrepreneur. Over a decade of experience owning and operating a Midwest based construction, and development company. Wide range of project experience managing new construction, and value add multifamily projects.

Learn how Duc Ong started his podcast! – Listen to the episode now on The Cashflow Project!

Equity Yield’s first deal using Institutional Capital

Ryan Webster and his team acquired their first deal back in March of 2021. It’s 148 units – 2016 built, a multifamily community in Sarasota, Florida. This particular property – newer built: Interiors looked 20 years older than they were. A lot of people don't realize developers are building in project cost. The finishes are getting done last as you have cost overruns.

Equity Yield worked with Franco Electra Capital- they are a partner of American landmark.

Advantages of working with an institutional capital is they can come in and write a pretty sizable check but there's a pretty heavy due diligence process on the sponsor and the operations team, the deal and the business plan.

As part of getting certainty of closing with that money - you got to have a very good business plan and be able to communicate to their equity committee and work through their approval process.

As part of getting certainty of closing with that money - you got to have a very good business plan and be able to communicate to their equity committee – Ryan Webster. Catch him on this episode from The Cashflow Project!

How did Ryan Webster get hooked up with Franco Electra Capital

Ryan and his team has a capital markets brokers that they worked with. They are big with fundamentals; they look for markets with higher population growth and inbound net migration. They look for denser markets. They also look for diverse employment market, stable economies, growing wages and favorable income rent ratios.

Equity Yield makes sure that the income or the jobs supports the cost of rent. Net absorption and new deliveries- they want to be in an area that is supply constrained.

How has Covid affected the Equity Yield's operations?

Ryan hasn't really seen any effect in their operations, its more been a proof of concept and investment thesis. They look for a very late model product that is very well located.

Deals in low capitated market: numbers game. Persistence. Equity Yield underrates a lot of deals, a lot of offers in, buyers’ interview. It's really about getting out there and come in as second place and then waking up the next day and doing it again.

A while back, we would ask people for coffee to pick their brain…. Nowadays, we could just invite them to our podcast. Catch the interview with Ryan Webster on The Cashflow Project!

Outline of the Episode:

• [01:29] We acquired our first deal back in March 2021 it’s 148 units 2016 built multifamily-unit community in Sarasota Florida.
• [02:48] We worked with the Fern Call Electra Capital partner with American landmark.
• [03:58] We look for markets with higher population growth and inbound immigration.
• [09:19] We continue to look for more asset this year. It is nice with you another couple hundred million for 2022

Resources:

• Ryan Webster - www.equityyieldgroup.com