Financial Analysis & Ongoing Reporting For Real Estate Fund
My name is Justin Lee and I've been a full time real estate
investor for over 10 years now.
My business has been primarily buy, fix and flip (in the
San Diego market), but this past June I started a new company
with a private investor.
We started buying cash flow rental properties (single family
houses) in Saint Louis, MO and are doing very well.
However my partner in that company has no desire to take on
any debt, so that business has basically reached capacity.
Because the returns in Saint Louis, MO are so good, I want
to keep buying there, but all of my capital has been
Therefore, I am now in a situation where my next solution is
to pool together funds, raise money, and do a PPM.
One challenge I am currently facing is that my background,
and what I'm good at, is real estate. Not financial modeling,
accounting or financial analysis.
This where you come into play.
I am looking for a financial wizard to:
1. Look at the portfolio of homes I purchased this summer
(30 units in total) and use that as model for the PPM.
2. Help me fine tune my projections, and project what I
(and my investors) can realistically earn.
3. Help me come up with a model (pref rate + split) that
is fair to my investors, but also allows me to make money
4. Help me estimate, outside of real estate, what I'll need
to budget for financial work that will need to be done once
the fund is up and running.
Then, once the PPM is done and the fund is up and running,
I'll need ongoing help with:
1. Calculating payments due to each investor (quarterly)
2. Compiling reporting data to send out to our investors
3. Helping with projections and cash flow, reserves, etc
4. Converting the data into a format where I can use it
5. Establishing valuations so that moving forward, I can
raise more money, at a better valuation
So here's what I'm looking for:
A quote from you on how much it will cost me to have you
look at my existing portfolio, and convert that into
projections based on what we've accomplished so far.
An estimate of how much I'll need to budget on a monthly/
quarterly basis for you ongoing financial work of accurately
paying my investors, calculating returns, etc.
Obviously this cost will need to be factored into Part I.
So please provide me with 2 prices:
I. The upfront cost of the analysis
II. The expected ongoing costs.
Just so you're clear, this first round of funding will be
small. Probably $1M-2.5M.
Also, I'm specifically looking for a candidate who has
experience with PPMs, funds, pooling of money, calculating
investor returns, reporting to investors, etc.
Ideally, I'd really like someone with real estate fund
experience as well.
If you don't have said experience, then we're probably not
a good fit for each other.
Please reply back with any questions that you might have,
I eagerly await your response.