Choosing the container before the deals on 1.4m of equity
Two closed deals, 480k of equity raised across 9 people, both still paying. Next 18 months I want three acquisitions in the same submarket and that's roughly 1.4m of equity. The raising is what slows me down. Last deal took 11 weeks from LOI to funded and I lost one property because of it. Four containers I keep going back and forth on. Deal by deal is what I know, every investor sees the actual property and votes with a wire, and my close risk stays high. A small committed fund fixes speed and lets me bid like a buyer with cash, but I'd be asking people to commit to properties I haven't found, on a two deal track record, and fund admin plus audit is real money every year whether I buy anything or not. A pledge structure sits in the middle, people soft commit and can pass on any single deal, which sounds great until half of them pass on the one deal I need to close. Or I co-GP with an operator who already has the investor base, take a smaller slice, and learn how their reporting machine works from inside. That last one costs me the most economics and the least sleep. What I can't get a clean answer on is whether investors read a fund at my size as ambition or as someone getting ahead of themselves.
Two deals in, 1.4m of equity to raise. Which container?
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