Launching a real estate private equity firm isn’t for the faint of heart. It requires vision, persistence, and the right team to navigate a complex, competitive market. On a recent episode of Ritter on Real Estate, I had the pleasure of speaking with August Biniaz, co-founder and Chief Investment Officer at CPI Capital. August has closed over $225 million in multifamily and build-to-rent deals and hosts the Real Estate Investing Demystified podcast. He shared insights on everything from building investor trust and structuring deals to identifying opportunities in today’s market.
Here’s what we covered.
Finding the Confidence to Start
Starting a private equity firm requires more than just confidence—it requires a bit of audacity. August explained that while confidence is necessary, there’s also “an aspect of insanity” in thinking you can succeed in a business dominated by institutional giants like Blackstone.
For CPI Capital, the opportunity came from serving a niche: Canadian investors who wanted access to US multifamily syndications. This focus gave the firm a starting point and a competitive edge. August emphasizes that understanding where you fit in the market is crucial—but confidence and relentless determination are key ingredients for success.
Mindset Matters: Why Many Don’t Make the Leap
Real estate private equity is not easy, and the majority of newcomers won’t succeed. August pointed out the survivor bias in the industry: we often hear about the success stories, but not the 99% who fail. Most profits in private equity come on the back end of deals, meaning you need patience, resilience, and the ability to fund operations before seeing significant returns.
“You need to have the right partners, the right mindset, and a resilient personality,” August said. “So many aspects go into this business.”
Building a Team: Real Estate Private Equity is a Team Sport
A key takeaway from our conversation: private equity is a team sport. According to August, every successful real estate investment firm needs three critical components:
- Acquisitions: Finding and underwriting deals
- Asset Management: Executing the business plan post-acquisition
- Investor Relations: Raising capital and maintaining relationships with investors
CPI Capital’s leadership team mirrors this structure. August oversees operations and asset management, Paul Hopkins manages acquisitions, and Ava Benesaki leads investor relations and marketing. Delegating these roles allows the company to scale efficiently.
Raising Capital: Building Credibility and Trust
Raising millions from high-net-worth investors requires credibility and a well-defined system. August shared the framework CPI Capital uses:
– Build a Brand: Launch podcasts, create LinkedIn content, speak at events, and host webinars
– Create Leads: Capture potential investors through educational content and lead magnets
– Nurture Leads: Use a CRM (like HubSpot) to stay in touch with investors via weekly updates
Interestingly, August found that raising money from his immediate circle was harder than expected. Even friends and family who trusted him as a home builder were hesitant to invest in a new venture. This highlights the importance of establishing a professional brand beyond your initial network.
Common Capital-Raising Mistakes
For newer capital raisers, August identifies several pitfalls:
– Timing and Structure: Do you secure a deal first or raise capital first? Each approach has challenges.
– Database Quality: Not all leads are equal. Qualified investors make the difference.
– Compliance: Understanding and adhering to regulatory requirements in your jurisdiction is critical—noncompliance can result in fines or jail time.
The Multifamily Clock: Understanding Market Cycles
August introduced the concept of the “multifamily clock” to track real estate cycles:
– 12 o’clock: Market peak, mania, hyper-supply
– 6 o’clock: Market bottom, foreclosures, liquidations
Knowing where you are on the clock helps investors plan acquisitions, debt structures, and holding timelines. Currently, August believes we’re closer to six o’clock—an opportune time to find deals, particularly distressed properties.
Opportunities Today: Case Studies in Tampa and San Antonio
In Tampa, CPI Capital has captured a 6% market share for properties over 100 units under $50 million. Opportunities here require creativity in a competitive market, such as converting empty storage spaces into tenant amenities.
In San Antonio, oversupply has created distress in the market. Many properties purchased with aggressive underwriting now face high vacancy rates, creating opportunities to acquire below replacement cost or below the original mortgage note. August emphasized that regional market dynamics, like vacancy rates and supply, must shape underwriting and strategy.
What’s Next for CPI Capital
CPI Capital is expanding its focus:
– Texas Market: Entering San Antonio with build-to-rent duplexes
– CPI US Multifamily Fund: A mutual fund trust structure allowing investors—including Canadians—to self-direct retirement accounts into US multifamily deals. This launch represents a significant milestone for expanding investor access and capital raising capabilities.
Key Takeaways for Aspiring Investors and Operators
- Confidence alone isn’t enough: resilience and audacity are essential
- Team structure matters: divide responsibilities across acquisitions, asset management, and investor relations
- Credibility scales: build a brand and nurture leads systematically
- Understand market cycles: invest strategically based on where the market is on the “multifamily clock”
- Regional differences matter: a deal that works in Tampa may not work in San Antonio
Final Thoughts
Launching and scaling a real estate private equity firm is challenging, but with the right mindset, team, and strategy, it’s achievable. August Biniaz and CPI Capital exemplify how careful planning, market insight, and disciplined execution can lead to success—even in competitive and cyclical markets.