How Much Equity Do You Need to Raise for a 20 to 50 Unit Apartment Building?
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The equity a sponsor raises for a 20 to 50 unit apartment building is not just the down payment. It is the down payment plus closing costs, planned repairs and a reserve account, so the raise is usually well above the number a lender first quotes. If you are the sponsor, we built DoorRaise to run the raise itself, and the sizing below tells you what number to put on your deal page.
What does the equity raise actually pay for?
Start with a sources and uses table. Our sources and uses guide shows the full layout. The uses side has four lines that matter at this size:
- Down payment: the purchase price minus the loan. Loan size depends on the lender's limits on loan to value and debt service coverage, covered in how lenders size an apartment loan.
- Closing costs: lender fees, title, legal, third-party reports and similar. See apartment loan closing costs.
- Planned repairs: the renovation or catch-up budget in your business plan. See value-add renovation budget per unit.
- Reserves: cash left in the deal for surprises and slow months. See syndication reserves.
What does the math look like? (Example only)
This is an illustration with made-up round numbers, not a quote, a market average or a projection. Say a sponsor is buying a 30 unit building.
| Line | Example amount |
|---|---|
| Purchase price ($100,000 per unit) | $3,000,000 |
| Loan (70% of price) | $2,100,000 |
| Down payment | $900,000 |
| Closing costs (2.5% of price) | $75,000 |
| Planned repairs ($10,000 per unit) | $300,000 |
| Reserves | $90,000 |
| Equity to raise | $1,365,000 |
At an average check of $50,000, that is about 27 investors. At an average of $100,000, it is about 14. Change any input and the answer moves, so rebuild the table with your own contract price and your lender's actual quote. Our raise planner does the arithmetic for your numbers.
How do you set the target and the minimum?
Your target raise is the full table. Your minimum raise is the least equity at which the deal still works, which might mean smaller repairs in year one or a smaller reserve. Write the minimum into the documents so investors know what happens if the raise stops short. If the minimum is not met, the deal does not close and money held in escrow goes back. Our guide to minimum raise and partial closings covers the mechanics.
Do not count your own money toward the minimum unless the documents say so. Our guide on sponsor co-investment explains how investors read it.
How many investors does that mean?
Divide the raise by the average check you expect, then add a cushion, because some soft commitments never sign. See soft commitments vs signed subscriptions. Raising from followers? Count only the people who have told you they would invest, not total followers.
How does DoorRaise fit in?
DoorRaise charges $1,500 to set up and $5,000 a year for administration, billed yearly in advance starting at closing. Neither fee depends on how much you raise. Investor funds are sent by wire to an escrow account held at Enterprise Bank & Trust, and DoorRaise verifies every investor is accredited in a 506(b) or 506(c) raise.
FAQ
Is the down payment the same as the equity raise?
No. The raise also covers closing costs, repairs and reserves.
Can the lender finance the repairs?
Sometimes, through a renovation holdback. Ask your lender, and put the answer in your sources and uses table.
Should I raise extra as a cushion?
Many sponsors size a cushion into reserves rather than raise above the table. Whatever you do, state the target and minimum in the documents.
Sources
The examples are simplified illustrations, not projections or offers. This article is general information as of November 2026, not legal, tax or investment advice. Talk to your own attorney and tax adviser. Every investment can lose money. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.