MB519: How to Build a Real Estate Private Equity Firm and Raise Capital Across Borders

Show Notes

In this episode, I sit down with August Biniaz, co-founder and chief investment officer at CPI Capital, to talk about what it actually looks like to raise Canadian capital for U.S. multifamily deals and why his firm stayed focused on multifamily and build-to-rent while so many others started chasing new asset classes. We also get into what makes the U.S. market so attractive, why Canadian investors look south for yield, and some of the real structural hurdles that come with cross-border investing.

If you are trying to understand where multifamily stands right now, how institutional thinking works, or what it takes to build a real investment firm with the right structure and focus, this episode will help. It is a practical conversation about discipline, timing, and what serious operators are paying attention to right now.

Key Takeaways

Why U.S. multifamily still attracts foreign capital

August explains that Canadian investors come to the U.S. because the cash flow and yield are far stronger.
In many Canadian markets, rent control and high taxes make value-add investing much harder.
A lot of Canadian investors are buying for appreciation, not income.
The U.S. still offers a rare mix of leverage, income, and scale that is hard to find elsewhere.

Cross-border capital raises are not simple

Raising money from Canadian investors means dealing with Canadian securities laws, not just U.S. rules.
Every deal requires the right entities, documents, and compliance structure on both sides of the border.
Tax structure matters a lot because Canadian authorities do not treat LLCs the same way the U.S. does.
This is why groups need strong legal and tax professionals before taking foreign capital.
If you only have one or two foreign investors, the complexity may not be worth it.

Staying focused is usually the better move

August makes the case that firms should not jump into new asset classes just because multifamily is slower right now.
Investors backed your firm for a specific strategy, and changing that too quickly can create confusion.
Every asset class needs its own skill set, systems, and operating knowledge.
Even with internal experience, CPI still partnered with local experts on build-to-rent deals.

What people mean when they say deals are not penciling

Deals are not falling apart because the math is broken.
They are falling apart because sellers still want prices that do not support investor returns.
If the deal does not hit the return targets, the buyer has to lower the offer.
That creates the bid-ask spread that keeps so many deals from trading right now.
Until sellers reset expectations or market conditions improve, many deals will keep stalling.

Why August is still bullish on multifamily

He believes multifamily still has strong long-term demand because affordability keeps more people renting.
He also points out that institutional ownership is still a tiny fraction of the total apartment market.
That means there is still room for smaller operators to grow and build meaningful businesses.
He likes deals today if they cash flow, have good debt, and make sense without heroic assumptions.

Global events still matter to apartment investors

August and I talk about how the Iran conflict could affect oil prices, inflation, and interest rates.
Those shifts can slow rent growth and change how quickly the market recovers.
Even when multifamily fundamentals are solid, outside shocks can delay the timing.
That is why operators need to watch both local numbers and bigger macro events.
Strong investing is not just about underwriting deals. It is also about reading the environment clearly.