When Capital Raisers Get It Right

Capital Raising and Deal Structure

Amanda Larson, founder of AMA X Equity, has raised roughly $2 million in investor capital since going full-time as a real estate capital allocator a little over a year ago. She specializes in multifamily syndications, sourcing deals, conducting due diligence, and structuring investments. In one of her largest transactions, the $31M acquisition of The Darby at Steeplechase, she played a key role in securing the deal, structuring the business plan, and signing on the loan. The total equity raise was just under $20M, with multiple sponsors contributing capital.

 

Role in Deal Execution

Amanda’s process starts with sourcing deals through broker relationships, conducting due diligence, underwriting, and assembling a sponsor team. In the case of The Darby, she worked with Disrupt Equity, a Houston-based sponsor group, to close the acquisition. Although Disrupt Equity led the project, Amanda was part of the GP team, securing a share of the 20% GP split rather than participating in a fund-of-funds model where capital allocators typically take a cut of investor returns.

 

Underwriting Rigor and Risk Management

A key differentiator in Amanda’s approach is her engineering mindset, which she applies to underwriting. Unlike some capital allocators who simply rebrand and distribute sponsor pitch decks, she conducts independent underwriting and due diligence, verifying financial assumptions before bringing investors into a deal. She has learned to be particularly cautious about floating-rate debt, having seen firsthand how misplaced confidence in interest rate stability led to market turbulence.

 

Raising Capital and Investor Relations

Amanda primarily sources investors through LinkedIn and business networking events, leveraging her background in the oil and gas industry to connect with engineers and professionals seeking diversification. While she initially focused on operations and underwriting, she has recognized the importance of marketing and investor education, adapting her LinkedIn content to be more personal and engaging.

 

Lessons Learned and Market Outlook

Her biggest lesson? Don’t blindly trust the smartest person in the room.

She observed many seasoned operators confidently taking on floating-rate debt, despite clear risks, because the consensus among experienced sponsors was that rates would stay low. Additionally, she remains skeptical about the fund-of-funds model, noting that while it provides flexibility, it may be flooding the market with underqualified capital allocators who lack real estate expertise.

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Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry.

 

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