How Raj Venkatramani raises millions for real estate at REIDOC Capital скачать в хорошем качестве

How Raj Venkatramani raises millions for real estate at REIDOC Capital

Capital Raised and Deal Structure Dr. Raj Venkatramani, a pediatric oncologist turned real estate capital allocator, has raised approximately $20 million from investors, 95% of whom are doctors, since launching REIDOC Capital in 2021. His typical deal size ranges from $10 million to $30 million, and on average he raises $2 million per deal. His primary focus is on multifamily properties of at least 100 units, targeting Class A and B assets and new construction projects, rather than Class C properties, following hard-earned lessons from the market peak in 2021. Leveraging Group Capital for Better Returns Dr. Raj secures better economics for his investors by leveraging group capital. While a typical syndication might offer a 15% IRR with a 6-7% preferred return, Raj pools investors together to negotiate, for example, an 80/20 split (instead of 70/30) and an 8% preferred return, effectively increasing investor returns without requiring larger individual commitments. Underwriting and Market Lessons His underwriting philosophy is focused on analyzing sponsor assumptions, particularly around rent growth projections, occupancy expectations, expense growth, and debt structure. He talks about how bad assumptions can make a weak deal look good, citing an early investment in a Class C Florida asset where insurance costs doubled (from $196K to $400K in one year) and variable rate debt wiped out NOI. Transition to Ground-Up Development Raj expanded the kinds of deal he invests in from value-add to ground-up development and now partners on new construction projects in Sioux Falls, South Dakota, a market he believes is undervalued. His due diligence process before partnering with a sponsor involves a multi-year vetting process, meeting them at conferences, reviewing past deals, and even visiting completed projects before committing capital. LinkedIn as a Primary Investor Source Perhaps most surprising is how he sources capital: 90% of his investors have never met him in person, and nearly all were acquired through LinkedIn and referrals. His LinkedIn strategy? Post consistently for two years, even when people don’t engage, until they reach out ready to invest. Key Takeaway: Trust but Verify His biggest lesson? Trust but verify—real estate is not medicine, where all parties have the same goal. Misalignment of incentives is real, and capital allocators must be rigorous in due diligence to avoid costly mistakes. *** The only YouTube channel you need for real estate investing. Host Adam Gower Ph.D. is a 30+ year seasoned real estate professional who has over $1bn in transactional real estate experience and whose career includes positions with major institutional investors, private equity shops, and on his own account. He has raised over $500MM in equity throughout his career and today assists top sponsors in raising capital for their deals. He is an investor (LP) who prioritizes capital protection, followed by cash flow, and prefers sponsors with a long term investment perspective over short term quick-wins. The current series of published shows focuses on the world of the real estate capital allocator, a new way to finance real estate that has emerged only in the last few years. A "capital allocator" typically negotiates preferential terms with professional real estate sponsors on a deal-by-deal basis and then solicits individual investors. They either share the delta between the sponsor's original terms and the improved terms with investors or retain the delta as their compensation. In this YouTube/Podcast series, Adam interviews allocators, investors, sponsors, and service providers to offer you an in-depth look at this growing industry. Subscribe to Adam's free newsletter for real estate investors and gain access to: Introductions to sponsors, allocators, and investment opportunities. Insights drawn from his 30+ years of experience in real estate investing. Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe Email: [email protected] Call: 213-761-1000