4 Reasons to add our deal flow to your pipeline
The most common question I get from seasoned real estate investors is: I’m already getting deals from sponsors, why should I add your deal flow to my inbox?
In this post, we’ll go over the top 4 reasons you should add our deals to your deal flow. I’m sure the reasons will surprise you because if I wasn’t in the position I’m in now, I’d have no idea these existed.
I want to get you more deal flow, so here are the 4 things I’m offering you. If they’re helpful, fill out the form HERE to get onto our deal list and get these benefits right away.
1. Extra Due Diligence
We have the lowest acceptance rate of any fund manager that I’ve heard of. We get 30-60 vetted and under contract deals per month that we analyze, and from that, we accept just 2-4 per year.
With less than a 1% acceptance rate, very few deals pass all of our due diligence.
These are deals that already passed high-level due diligence from main sponsors. Having an extra layer of due diligence gives an unbiased opinion of the deal, market, business plan, and sponsor experience. It’s a level of due diligence I haven’t seen at the sponsor level in all my years of being a fund manager.
Want a sneak peek at the 9 high-level parts of due diligence that eliminate 99% of deals within the first hour? Download our first step due diligence template HERE.
2. Stronger Economics
Let’s use an example of one deal we’re working on right now. A direct investor would project about a 16% IRR, but because our fund invests as a larger entity, we get access to the economics of a 7-figure investor. Our investors project a 19-22% IRR on the exact same deal.
Combining your investing power with others gives you access to stronger deals vetted by our increased due diligence, and you’ll get stronger economics in those deals. Higher splits, higher pref, removed IRR hurdles, and other terms that boost your return potential.
3. Better Vetting Through More Deal Volume
We get 30-60 deals per month and take less than 1% of those per year. But because we get so many deals from so many asset classes in so many markets from so many different sponsors, we can truly pick from the top 1% of deals nationwide.
This gives diversification without the risk of investing in a new market with a sponsor who will have growing pains when they move markets, asset classes, or business strategies. We can truly see the top deals being done in the nation.
4. More Access
Let’s be brutally honest here. A 7-figure check writer gets more access to a sponsor and a deal than a regular $50k investor.
Our funds get to throw their weight around a bit more because we paid for that privilege. If you invested a million bucks directly into a sponsor, you’d expect a certain level of service and attention that’s unique to you and not every $50k investor gets. By investing through a group like ours, you’re part of a bigger entity with a bigger seat at the table.
Final Thoughts
So, if you want to boost your deal flow with extra due diligence, stronger economics, more deal volume, and better access, get on our email list HERE
Hope you found this helpful
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