| Hedge funds and private equity firms are investment | | | | more than 20 years, I’ve determined that the best |
| companies set up by Wall Street investment banks | | | | way to approach money mangers is with a concise, |
| and funded by wealthy individuals and cash rich | | | | well written 1 page deal summary. |
| corporate entities. Unlike standard, publicly traded | | | | Sum-up the selling points of your deal on a single |
| mutual funds, hedge funds are largely unregulated and | | | | sheet of paper, stressing the profit potential, the |
| have much more leeway in their investment choices. | | | | investors level of experience, the strength of the |
| Many of these funds have recognized the opportunity | | | | location and some of the other strong points of the |
| that’s emerged in commercial real estate lending, | | | | project. They’ll appreciate the fact that you |
| and have stepped in to fill the funding gap. The money | | | | respected their time by being brief. If they like what |
| managers in charge of these massive pools of capital | | | | they see they will ask for more. Give them precisely |
| are savvy investing pros, they know a good deal | | | | what they ask for; don’t bog them down with |
| when they see it and can be very nimble. Hedge funds | | | | documentation until they tell you they want to see it. |
| and private equity funds are not afraid of risk; in fact | | | | Sell them the big story before you try to sell them the |
| they thrive on it. If they like a deal, they make decisions | | | | details. |
| quickly and can close loan or equity financing in just | | | | If you want to secure funding from a big private |
| days. | | | | equity shop or a hedge fund, I’d strongly suggest |
| There are many private funds that specialize in | | | | you utilize the services of a professional intermediary |
| commercial real estate investing or have a commercial | | | | with Wall Street experience. They can speak the |
| mortgage lending division. They are cash rich and | | | | language of fund managers and know exactly |
| actively seeking quality deals to fund. They can be an | | | | what’s important to highlight about a particular deal. |
| excellent alternative to banks and other traditional | | | | These funds tend to operate like private clubs, it helps |
| lenders. But, be aware, they are very professional and | | | | a-lot if you have an “in”. If you are fortunate |
| highly sophisticated. Do not approach hedge funds with | | | | enough to develop a relationship with this unique type |
| shoddy or incomplete packages. They’re pros and | | | | of lender, you will enjoy a seemingly endless source of |
| work exclusively with other pros. | | | | capital. |
| Hedge fund and private equity people have a Wall | | | | MasterPlan Capital - Commercial Mortgage Loans |
| Street mentality; they are traders art heart. When they | | | | – Equity Financing – Asset Management – |
| look at a deal they want to be able to make decisions | | | | Online at: Prompt, Professional Service – Quick |
| quickly. | | | | Closings Available. |
| When approaching a fund you’ll want to have a | | | | The author, Glenn Fydenkevez, has more than 20 |
| complete, well documented package ready to show | | | | years experience working with Wall Street Investment |
| them at a moments notice, but don’t give it to them | | | | brokerages firms. He is currently the President of |
| all at once. Having worked for Wall Street firms for | | | | MasterPlan Capital LLC. |