The greatest hurtle for startup and small real estate companies is raising capital for a variety of uses to include such ventures as purchasing or repairing of property. Searching for capital should be conducted in a methodical step by step process. Each move should be carefully planned to increase the probability of obtaining financing from venture capital companies. There are two steps to obtaining monies from venture capitalist. First, you must create an elevator speech, executive summary and business plan. Each component must be designed to the utmost perfection. Secondly, you must search out venture capitalists that specialize in the real estate businesses.
The first step encompasses preparing your self and all of your documentation for intense scrutiny by venture capitalist. The elevator speech is designed to give a quick overview of the business to include several key points: the size of the market, business strategy, management team and potential of high returns. The executive summary is the second part of your business proposal that venture capitalist will see. The executive summary must excite your reader compelling them to read the business plan. The business plan should support assertions made in the executive summary. In addition the business plan must cover the salient points to include: company description, mission, target market, management and financials.
The most abundance source of venture capital funding comes from Small Business Investment Companies (SBICs) and Specialized Small Business Investment Companies (SSBICs). SBICs and SSSBICs are financial institutions created to make equity capital and long-term credit available to small, independent businesses. Typically, SBICs finance new, risky or high-tech ventures.
Finding SBICs is difficult as they rearly advertise. The first web site describes the industry and gives useful information on how to approach venture capitalists. The second a third web sites are search engines to assist you in seeking out venture capitalist that meet your specific investment needs. The final two web site are venture capital firms that specialize in real estate companies.
The Five Best World Wide Web Sites for Real Estate Companies Searching for Venture Capital
National Association of Small Business Investment Companies (NASBICs) – This web site gives excellent background into the SBIC industry to include laws and regulations. NASBIC acts as the voice of the SBIC industry before Congress and the Administration. Its goal is to build and maintain a strong and profitable small business investment company (SBIC) industry.
American Express-Small Business Services – The American Express web site list venture capitalists by state. In addition, this site provides information regarding venture capitalist’s industry preferences.
America’s Business Funding Directory Search Partners – This search engine connects real estate developers with sources of financing. This is a quick way to get information about existing products to fund real estate development businesses.
Chase Capital Partner (CCP) – Chase Capital Partners targets investment opportunities in the real estate industry. CCP invests in real estate oriented operating companies, such as hotels or parking companies; and in real estate assets, such as commercial office buildings, industrial buildings, or residential properties.
K&B Capital – K&B Capital Corporation is a commercial and residential Lender. They offer a wide array of mortgage products including: investment grade mortgage capabilities for office and condo projects, multi-family and health care projects, hotel and related, construction, bridge and mezzanine loans, commercial business, venture capital and working capital loans.