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About Our Guest
I am excited to share this next conversation with all of you. Antoin is the Founder and Vice President of Watson Worldwide Capital located in Houston, Texas. Antoin has spent nearly 20 years becoming The Matchmaker of Business. He has built relationships with industry experts, lead buyers to sellers and sellers to buyers, and he has opened many doors by creating opportunities to others through his ventures.
Today Watson Worldwide Capital is assisting many project managers and business owners dreams come true by connecting them with the right people in the industry with one common goal: for their project to receive funding and be complete from ground up. Currently Antoin, through Watson Worldwide Capital, is working on several projects in Puerto Rico and The Virgin Islands. Watson Worldwide Capital has assisted in many projects thus far. Some of which include commercial building financing, multi-family units, affordable housing project, condo fix and flip, cannabis project, and many more. Watson Worldwide Capital is your “all-in-one” stop. Your project can be funded, and you can be connected to those professionals that you need in order to complete your project.
In this episode, we are going to discuss how Antoin got started in brokerage, what his typical niche commercial real estate development brokerage deal looks like, and common myths about obtaining a commercial loan for real estate development that he wanted to debunk.
Types of Real Estate Financing
Real estate development requires many different capital-intensive processes to be successful. Oftentimes there is existing demolition that needs to be done on a perspective site, or various studies that need to be completed prior to even started the project. Each one of these processes leading up to project completion require capital. In order to make developers dreams become reality, financing will almost certainly be required in some shape or form. The proceeding paragraphs will provide you with a high-level view of the basics of real estate development financing.
These different loans can consist of either debt funding or equity funding. Debt funding allows the developer to obtain financing without surrendering any equity (value) in the project. Equity funding is considered a little more risky investment for most investors as the investor owns a “share” of the asset better known as equity. There are four main types of loans used in a real estate development deal. Each type is tailored towards different processes or events that occur within the development process.
To Find Out More About WWC
The main types are generally named as follows:
- Acquisition Loan – Often used to finance the purchase of the existing lot or tract of land on which you plan to develop.
- Acquisition & Development Loan – A loan that combines the construction and acquisition portions of the real estate development project.
- Development Loan – This type of loan is used to prepare a potential parcel of land for future development by making improvements such as extending necessary utility lines and building access roads throughout the project area.
- Construction Loan – These types of loans are utilized when either revitalizing an existing structure or building a brand-new real estate development project.
As you can see, each type of loan is tailored for each step of the real estate development process. These loans can be further broken down into their financing sources. The typical financing sources that are most common in the marketplace currently are bank loans, private equity funds, finance companies, crowdfunding, REIT’s, etc…
In this episode of the podcast, we dive into the role of private lenders on your construction loans and how you can increase your chances of obtaining this type of loan as this is predominantly the type of loan that Watson Worldwide Capital facilitates.
For more on funding your next Real Estate Development Deal, check out Episode 21 with Tony Holzbach to give you a perspective on funding your deal through a financial institution.
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