We help you raise up to 90% of the capital stack.
How do we source deals?
Mostly through our relationships but a property owner or Sponsor can contact us through this portal and submit an inquiry for capital raise. R2 staff then meets with the Sponsor to begin due dilligence process.
What kind of capital can I source from R2?
R2 offers a wide range of fully secured equity and loan/debt solutions including first mortgage term, bridge, mezzanine, etc. When you submit a request to raise capital you will contacted by our team members to discuss in greater detail. We will then meet with you in person to discuss all aspects of the transaction and give you comfort on our approach. We offer both Equity and Debt solutions. Our principals have financed and asset managed over $10 billion in commercial property and are very well known and connected in the industry.
What types of properties do you raise equity/debt for?
R2 combines traditional relationships with technology to bring you a wide variety of capital sources - both with speed and efficiency. Our team in the past has raised capital on all property classes across Canada/US including Retail, Industrial, Office, Multi-Family, Retirement homes, Hospitality, Self Storage and special purpose properties.
What is the difference between R2 and a traditional debt lender or equity investor?
R2 is an online platform with enhanced technology which is designed to speed up the capital raise process, reduce overall cost of capital, and let you focus on what you do best. We are complementary to all other institutional lenders i.e we work closely with them and will often times pool the capital with them to complete the capital stack.
Our sources of debt and equity capital include institutions, family offices, accredited investors, eligible investors, and crowd investors. Using our advanced technology platform we are able to expedite your capital raise needs (both debt and equity).
What fees does R2 charge?
R2 will charge an origination fee which will vary depending on the property, the sponsor, and the amount of capital required.
What is the cost of capital?
The capital costs are subject to a variety of different factors which include borrower experience and property level risk. Investors expect a level of return that is commensurate with project risk. It also is a function of the product i.e Debt or Equity.
What is your due diligence and underwriting process/criteria?
Once a company passes our initial qualification process, we then complete our rigorous due diligence on the project to be sure that it fits within our guidelines and is suitable for our investors. This includes research into and investigation of the following:
- Business/development plan (investment strategy)
- Risk/return profile
- Existing financial sources
- Proposed financial uses
- Exit strategy
- In depth market analysis including study of comparable properties
- Third-party reports
- Phase I and II Environmental
- Appraisal (Current and Stabilized)
- Engineering (Property Condition Report, Geotechnical Report)
- Budget analysis including detailed breakdown of construction costs
- Architectural plans and site plans
- Pro-forma financial analysis
- DSCR/LTV sensitivity
- Investment structure
- Legal/organizational structure
- Third party references
- Site visits
I want to raise equity, how do I do this with R2?
To raise equity you can contact us via firstname.lastname@example.org with a brief description of your project and we will be in touch with you to discuss further details.