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In the realm of commercial real estate financing, an essential component involves sourcing equity from different investor types. These investor types may include family offices, private equity funds, and REITs. By connecting sponsors with a variety of equity sources, developers can secure the necessary funding to move forward with their real estate projects.
Establishing strong relationships and effectively connecting developers with the right equity sources can lead to successful partnerships and greater project success. In this episode, Derek Carroll discusses his work in helping sponsors find the right equity sources for their projects. His work revolves around arranging equity investment opportunities for real estate developers, with a focus on multifamily housing. He remarks that his company is currently concentrated on development deals, particularly within the multifamily and self-storage sectors, thus positioning himself as an expert in capturing the right investment opportunities for his clients.
Derek Carroll is an industry veteran with over a decade of experience working on well over one billion dollars worth of deals.
Previously an award winning producer at NorthMarq Capital, Carroll founded High Peaks Capital in 2015. High Peaks Capital is a real estate capital advisory and investment firm that helps sponsors source preferred and Joint Venture equity for their deals as well as bridge and mezzanine financing. High Peaks Capital is also a direct investor and sponsor of deals ranging residential house flips, to value add multifamily syndications, to ground up developments.
Carroll has a degree from Cornell University, is a licensed commercial real estate broker in NY, and is active in numerous trade organisations. When not at a youth sporting event, Carroll can be found on the golf course, racing cars, or on the lake.
In this episode Jonathan and Carroll:
Explore the differences between joint ventures and preferred equity strategies in real estate investments.
Cover the art of syndication, raising equity, and expanding your client base for a successful real estate business.
Go over the significance of an impressive track record and successful exits when seeking equity support.
Gie you guidance on how to implement efficient prospecting and follow-up techniques to ensure victory in your client outreach efforts.
Uncover the benefits of HubSpot CRM and how its marketing features enhance inbound lead generation and follow-up processes.
Some key points:
(02:41) How do the types of deals that Derek works with differ from typical syndication deals?
(04:25) What is the structure of a JV deal and how do they diffed from syndications
(06:10) Can you do a deal that’s basically debt and prep equity with no common equity, or is that not possible?
(08:22) Defining long-term holding
(09:50) What happens when the investors push the sponsors aside in the case of a deal not working out
(11:10) Equity investment deals typically start around 10 to 15 million in terms of size
(12:06) Defining an irreplaceable asset
(14:35) Under what circumstances will investors co-sign on debt?
(16:04) How to pitch in order to secure an equity investment deal
(20:48) How did Derek end up in this business in the first place
(23:34) Building a book of business can be tough but it’s absolutely critical
Derek’s job is a sales job at its core
(28:27) How to reach out to 50 prospects per day
(34:45) Switching the CRM from Salesforce to Hubspot
(36:04) Once the sponsor and investor are successfully linked, how does Derek get paid himself?
(36:54) Derek’s ideal client
(37:53) How to reach out to Derek for a potential deal
🌎Reach out to Darek Carroll
High Peaks Capital https://highpeakscapital.com/
🌎Reach out to Jonathan Twombly
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Make sure to also check some of our previous episodes:
Going From Working In Hospitality To Multifamily Investing & Hotel Conversions With Charlie Rushton
Hotel Conversions To Multi Family Housing With David Peters
🎤 Podcast production Everglade Media