Real Estate Opportunity Post #3

Before my boss founded his firm McQ Holdings he was the managing director of a multi family office.  From this he has many connections to deal flow and for raising capital to fund various investment opportunities.  One of the first projects I was assigned to was a real estate deal that came to us from a man that my boss had a strong relationship with from his time working at his family office.  This partner had worked with my boss various times in the past with success ranging from deals in telecomm to robotics.  This particular opportunity was similar to the work of an investment banker as we were in charge of raising debt for a new real estate development company based in the Pacific Northwest.  My boss’s partner had success in real estate in the past and over the last year reported very strong numbers for an independent fix and flip business he was running with a small development company.  His goal was to double the amount of properties he was acquiring a month and to decrease turn around time by increasing the size of his crew.  To achieve this he needed us to help secure a senior lender to cover about 80% of acquisition and construction costs as well as a lender of mezzanine debt.

I have an interest in real estate as an investment so this particular project came of interest to me.  My boss assigned me to lead the opportunity with help from the full time analyst that was hired after his internship the past summer.  The first thing I was in charge of was reaching out to our client and receiving their financial model showing the companies most recent property acquisitions and how they had been performing the last year.  I used this information to create a DCF analysis showing future revenues and profits to present to the funds during pitch meetings.  Next I had to complete extensive research on the real estate market of the city that our clients fix and flip business was located.  This included a presentation highlighting the cities economics, business and employment opportunities, education, and the main attraction points.  Using the information I put together we created a pitch book that we sent to several funds that had expressed interest in the real estate opportunity.  I helped the full time analyst create the list by researching and focusing on debt lenders in the pacific northwest that had success lending for real estate projects in the past.  We actually turned out securing our mezzanine debt from a lender in Washington that I had reached out to on a call.  This turned out to be a project that I got to watch develop from start to finish which I enjoyed and the experience is certainly going to be a valuable talking point in future interviews.

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