My LLC is always coming across great development opportunities in the city of Philadelphia. Our problem is one of capital. We like the idea of partnering with an investor who would completely or partially fund a project for an equity position in the project. Do these types of investors exist, and what is the best way to get in touch.
Thanks in advance!

Every deal is different. You really should get hold of a reputable broker who knows what he/she is doing (no easy task in itself).

Many clients think that dealing with an investor is faster and cheaper. It not true for the most part esp when you are deal with private guys. You may save a point or two but all it takes is one mistake or oversight for a client to face an investor legal pitbulls. Truth be told...we see this on a monthly basis.

In you case the most important variable will be your track record and the type of properties you are involved in. Many equity investors will only get involved in specfic types of property i.e. mixeduse/multifamily, retail, gaming or industrial. The other criteria will be your deal size. Large deals have plenty of capital chasing them (both domestic and foreign) i.e. REITs, Insurance Co and Comm banks. Smaller deals are tougher to find equity partners but they do exist and are more selective. Post a gen descip of the type and $volume/deal and maybe i can reco a few guys.

I'm a investor/developer, Give me a call

Take a look at our company.

Have a group of investors with hedge fund of over 5 billion dollars that would be interested. Please contact via email if interested. Thanks for your time and good luck.

Types of Capital Structures

Equity: Traditional equity investment into the ownership entity as a partner, member or stockholder. Investments are with qualified developers and operators in transactions where there is a significant opportunity for value creation or cash flow enhancement. The equity and preferred return will be distributed on a pari passu basis.

Preferred Equity: Preferred Equity is best suited for situations where the developer lacks the additional equity capital required to bridge the gap between debt and purchase or development cost. A Preferred Equity investment is typically structured so that the investor receives its investment plus a preferred return and a participation in profits to achieve their target IRR.

Mezzanine Debt: Mezzanine Debt provides developers with subordinate debt funding up to approximately 90% of the value of the property. This program is attractive to developers who want to retain a greater share of the profits. The first mortgage is typically straight debt and the second mortgage is the higher risk and higher yield instrument, which has either a higher coupon or exit fees. The lender may be the same for both debt instruments or could be two different lenders. This structure is particularly good for developers who want to retain 100% ownership.
Participating Debt: Participating Debt leverages the property to 90% of the cost and as much as 80% of the stabilized value of the property, typically in a blended first and second mortgage structure. This type of structure has many of the characteristics as Mezzanine Debt, but typically there is only one lender.

Development Agreement: The investor actually takes the ownership position and through a Development Agreement contracts the developer to build and manage the asset. The developer receives 25% to 30% of the profits. This is ideally suited for developers who have no cash equity of their own, young developers with an experienced background but just starting out on their own and for those developers who want to minimize risk.