Tools for Scaling

Written by Tyler Kastelberg

January 30, 2022

Happy Sunday! 

We were recently featured on a LinkedIn post by Harvey Multani on a massively scalable tech stack. Harvey is building a Y-Combinator for multifamily real estate development. His goal is to connect high performers with the right tools and resources to build massive multifamily developments.  

When I first spoke with Harvey, I didn’t get it. There are a lot of people in this business who know how to do deals … why do we need an accelerator?💡 … because real estate is full of deal junkies who aren’t necessarily good at scaling businesses. In order to build big buildings, you need to be able to build a big business. 

Harvey’s accelerator hasn’t launched yet, but I think it is a brilliant idea. Connect with Harvey on LinkedIn if you’re interested in learning more. 

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Tools for scaling real estate sponsors …*Credit for 90% of this list goes to Harvey, but I’ve sprinkled in a few of my picks where it made sense.  

1) Site selection

2) Financial modeling + pro formats

3) Hiring contract development team members

4) Deal room

5) Create a turnkey SPV to raise equity

6) Fund admin if using own entity instead of using turnkey SPV

7) Sourcing debt capital

8) Managing construction finance

9) Accelerate lease-up by eliminating need for security deposits

10) Report rental data to credit bureaus

11) Generating liquidity from leases

12) Generating liquidity by GPs and/or LPs borrowing using their membership interests as collateral

13) Generating liquidity through property IPO while GP maintains operational control

14) Data Management (this is one of the biggest issues with big CRE companies …)

I hope you found something on this list helpful!

Give me a reply if I missed anything.

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