Raise U.S. Capital for African Real Estate Projects with Reg D
Raise U.S. Capital for African Real Estate Projects with Reg D
If you raise 20%–40% of the project cost, banks will fund the rest. Here's how to structure it under U.S. Reg D.
Most African real estate developers don’t realize they can raise capital legally in the U.S. through a private placement exemption called Regulation D. It’s fast, compliant, and doesn’t require full SEC registration. And you don’t need to raise the entire project cost. You just need to raise enough equity to trigger construction finance—usually 20% to 40% of the budget.
Who This Works For
- Real estate developers building housing, mixed-use, hotels, or logistics hubs in Africa
- Project sponsors backed by land, entitlements, or early-stage buyers
- Capital advisors and syndicators with investor access in the U.S. or diaspora
Reg D: Raise Capital from U.S. Investors Without a Public Offering
Regulation D allows you to raise capital from accredited investors in the U.S. without a public listing. Financely helps structure the offering, handle the compliance, and onboard investors through our platform.
Key Features:
- Legally raise U.S. capital for offshore projects
- No SEC registration required
- Investors complete digital onboarding
- Track all subscriptions through our Monday CRM integration
You Don’t Need to Raise the Whole Amount
Many developers try to raise 100% of the project cost. That’s rarely necessary—and often a red flag to investors. In most cases, banks (local or international) will provide construction finance if you can show:
- 20%–40% of total project cost in real equity or deposits
- Contractor bids and project schedule
- Evidence of buyer demand or pre-leases
Investor funds raised under Reg D typically go toward deposits. These sit with the lending bank or escrow agent, and trigger loan disbursement for actual construction phases.
Understanding Construction Phases
| Phase | Milestone | Common Use of Funds |
|---|---|---|
| Pre-Development | Land control, permits, plans | Legal, architecture, entitlement |
| Deposit/Bank Engagement | Equity raised, loan terms issued | Deposit placed with local or international lender |
| Mobilization | Contractor signs, SBLC issued | Standby Letter of Credit to guarantee payment |
| Construction | Funds drawn by progress certificate | Construction draws, verified by engineer or lender |
| Completion | Project delivered | Exit, refinance, or sale to end-user |
Standby Letters of Credit (SBLCs): When and Why They're Used
In many African real estate deals, banks or major contractors want a payment guarantee. That’s where an SBLC comes in. You can use part of the equity raise to issue an SBLC, guaranteeing contractor payment upon meeting specific milestones.
These are typically issued:
- At mobilization stage, before first draw
- By a Tier 1 or reputable international bank
- Backed by escrowed funds or a credit facility
Buyer Deposits: Additional Leverage
In some deals, especially residential or hospitality developments, early buyer deposits can contribute to the equity base. These deposits, when properly escrowed, count toward the total 20%–40% needed for banks to commit construction loans.
How Financely Helps Developers Raise
- We structure your Reg D offering
- Create PPM, pitch deck, and terms
- Distribute to accredited U.S. investors through our network
- Onboard investors digitally with full compliance
- Track capital raised, commitments, and disbursement stages in real time
Need to Raise Capital for a Project in Africa?
If you’re building in Lagos, Nairobi, Accra, or anywhere else—and have a real project—we can structure your raise and get it live in weeks. You don’t need to raise the full amount. Just enough to start.
Submit a Project Book a Capital CallFinal Thought
Most developers miss out on funding not because their project is weak—but because their structure is wrong. With a smart raise under Reg D, clear use of proceeds, and properly phased deployment, you can get your project moving with far less equity than you think.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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