Keeping your Real Estate Syndication/Fund Healthy

Fractional CFO Services for Real Estate Syndications & Funds:

"A   Strategic Finance Partner for Scalable Growth, Investor Confidence, and Regulatory Excellence"

Real estate syndications and funds require more than basic accounting. They need sophisticated financial strategy, detailed investor-focused reporting, and compliance oversight. A Fractional CFO acts as your outsourced financial partner, providing tailored expertise and strategic insights without the cost of a full-time executive.

What do they do?

There are some "Core Service Categories" that encompass the solutions a Fractional CFO can bring:

1. Capital Structure & Fund Strategy Development

What We Do:

• Design optimal capital stacks (preferred equity, common equity, mezzanine, debt).
• Structure funds or syndications (General Partner/Limited Partner split, fund vs. deal-specific entity).
• Advise on waterfall models, promote structures, and fee models.

Benefits to You:

• Attract more sophisticated investors with institutional-grade structures.
• Ensure alignment of interest between GP and LPs.
• Optimize returns for both syndicator and investors.

2. Financial Modeling & Projections

What We Do:

• Build detailed financial models at the asset, deal, and fund level.
• Include acquisition assumptions, capital expenditure plans, rental income, exit strategies.
• Perform scenario planning (base, best, and worst cases).

Benefits to You:

• Gain clarity on cash flow timing and distributions.
• Improve decision-making prior to acquisition or fund formation.
• Demonstrate sophistication to investors and lenders.

3. Cash Flow Management & Forecasting

What We Do:

• Develop fund-level and/or deal-level cash flow forecasts (12–36 months).
• Manage timing of capital calls, distributions, and expenses.
• Monitor liquidity buffers and working capital.

Benefits to You:

• Avoid capital shortfalls or delayed distributions.
• Enhance investor trust through consistent communication.
• Maximize internal rate of return (IRR) and equity multiple (EM).

4. Investor Reporting & Communication

What We Do:

• Design and manage quarterly investor reporting packages.
• Automate capital account tracking, distribution logs, and IRR calculations.
• Facilitate investor dashboards or portals upon request (working with platforms like Juniper Square, AppFolio, etc.).

Benefits to You:

• Build investor trust with clear, consistent, and professional communication.
• Reduce admin time and questions from limited partners.
• Position yourself for repeat capital raises.

5. Fund Administration Oversight

What We Do:

• Liaise with fund administrators and custodians.
• Reconcile net asset value (NAV), capital accounts, and distribution waterfalls.
• Ensure fund documents are interpreted and followed correctly.

Benefits to You:

• Prevent costly administrative or legal errors.
• Ensure compliance with your PPM, LPA, and offering documents.
• Free up your team to focus on acquisitions and asset management.

6. Deal & Fund Level KPI Dashboards

What We Do:

• Track key metrics: occupancy, rent roll, DSCR, LTV, equity multiple, IRR.
• Monitor fund-wide performance vs. benchmarks.
• Develop customized real-time dashboards in Excel, Power BI, or Google Sheets.

Benefits to You:

• Spot issues early and take proactive action.
• Communicate performance with stakeholders clearly.
• Make more data-driven decisions on asset repositioning, refinancing, or exit timing and strategies.

7. Tax Strategy & Coordination

What We Do:

• Coordinate with Tax Advisors to determine the impact of cost segregation, 1031 exchanges, and bonus depreciation strategies.
• Review investor K-1 timelines and distribution estimates.
• Structure deals for optimal tax efficiency.

Benefits to You:

• Maximize after-tax returns for limited partners and the general partner.
• Avoid last-minute tax surprises.
• Strengthen investor satisfaction and increasing retention.

8. Capital Raise Support

What We Do:

• Prepare data rooms, PPM financials, and pitch deck financials.
• Help model equity raise requirements and IRR impact.
• Offer financial due diligence support during investor Q&A.

Benefits to You:

• Raise capital faster with investor-ready materials.
• Avoid dilution or overpromising returns.
• Increase limited partner confidence in your team and the fund’s professionalism.

9. Audit & Compliance Preparation

What We Do:

• Assist in the audit process with third-party auditors.
• Organize supporting documentation and GAAP adjustments as needed.

Benefits to You:

• Avoid delays that impact investor distributions.
• Meet lender and institutional investor requirements.
• Position yourself for future funds or institutional capital.

10. Exit Planning & Disposition Strategy

What We Do:

• Model exit scenarios for each asset or fund.
• Advise on timing and method (refinance, sale, portfolio sale).
• Evaluate tax implications and reinvestment opportunities.

Benefits to You:

• Maximize returns at exit.
• Time capital events to benefit fund lifecycle and limited partner satisfaction.
• Strategically roll gains into the next fund or 1031 exchange.

How We Work with You:

• Flexible Engagements: Monthly retainers or project-based.
• Fractional Availability: 10–40 hours/month depending on scope.
• Collaborative Tools: We integrate into your systems (QuickBooks, AppFolio, Excel, Monday, Juniper Square, Cash Flow Portal, InvestNext, Avestor, etc.)
• Clear Deliverables: Weekly or Monthly reports, monthly dashboards, quarterly reviews.