Texas sponsors filed 89 real estate raises in 30 days, the most of any state

Texas-based sponsors filed or amended Form Ds for 89 real estate offerings between Oct. 4 and Nov. 2, more than California’s 70 or New York’s 64 ^[6]. Dallas alone accounted for 32 ^[6].

Texas raises draw from a wider base of smaller investors. We calculate a median of 23 investors per Texas offering that reported any, against 16 nationally, and a median of $200,000 sold per investor, against about $254,000 ^[6].

A Stafford sponsor filled two raises from 298 investors

DPEG Kanwa made its first sale Oct. 2 and filed Oct. 9 with all $14.95 million sold to 170 investors at a $50,000 minimum ^[1]. DPEG Brazoria, another DPEG partnership in Stafford, reported $11.95 million from 128 investors seven days after its first sale ^[6].

Kanwa’s filing estimates $1.5 million for the general partner and its affiliates: a 2% annual management fee of $300,000 over a term of up to 3.5 years, plus a one-time 3% loan origination fee of $450,000 ^[1]. We calculate that total at about 10% of the money raised.

Two more DPEG partnerships, Galveston Plaza and Plantation Village, filed for $20.65 million combined and had reported no sales ^[6].

The biggest Texas checks came from a few institutions

Crow Holdings Real Estate Credit Fund in Dallas reported $266.75 million from nine investors toward a $500 million target, and it estimates $3 million in sales commissions across three placement firms ^[2]. We calculate about $29.6 million per investor.

Fort Worth’s FISYN Value Add Fund filed under Rule 506(c) for $150 million with a $100,000 minimum and had not made a sale ^[3]. Texas sponsors claimed Rule 506(b) on 64 of their 89 offerings ^[6].

Texas permits for apartment buildings dropped 17%

Texas builders pulled fewer permits over the same stretch. Permits for homes in buildings with five or more units came to 36,504 from January through September, down from 44,064 a year earlier, a decline we calculate at 17% ^[4][5]. Single-family permits declined about 3%, to 108,433 ^[4][5].

How to use this

For investors weighing Texas offerings

1. Add up the sponsor fees listed on the Form D before you compare projected returns. On DPEG Kanwa, $1.5 million of estimated related-party payments ^[1] means we calculate that about $5,000 of a $50,000 check goes to the general partner and its affiliates over the full term.
2. Ask the sponsor in writing whether the offering you are being shown is still open. Nineteen of 56 new Texas offerings with a fixed target reported being fully sold on their first filing ^[6].
3. Look up every paid seller on FINRA BrokerCheck using the CRD number on the filing. Crow Holdings names three firms and estimates $3 million in commissions ^[2], which we calculate at 0.6% of its target.

For Texas sponsors raising now

1. Set your minimum with the typical Texas check in mind. The median Texas offering took about $200,000 per investor, and DPEG filled two raises with a $50,000 minimum ^[1][6].
2. Put your permit date and lease-up plan near the front of an apartment pitch. Multifamily permits in Texas came in 17% lower through September than a year earlier ^[4][5], and investors comparing deals can see that number too.
3. Itemize fees in the use-of-proceeds note on the Form D, as Kanwa did with its management and origination fees ^[1]. FISYN reported a $1.5 million use-of-proceeds estimate without a breakdown ^[3].