WS1631: How to Analyze a Deal | #Highlights

Published: April 9, 2023, 7 a.m.

When passively investing in real estate, a big question that an investor asks is, \u201cHow do I vet a syndication deal?\u201d Upfront, an investor must look at investment structure and returns, the market, and the risks. But beyond the numbers on paper, it is foremost to know if your money is in good hands. But, how do you know if you can trust the sponsor who\u2019s leading the deal?

In this #Highlights episode, we look back at our conversations with Samuel Giordano and Bronson Hill. Learn how to evaluate syndication deals and know what a passive investor should be thinking about, and the things that should be important before doing a deal and moving forward with your investments.


Key Points From This Episode:\xa0

  • What turns Samuel off about a specific sponsor?
  • What are Samuel\u2019s biggest criteria for choosing a sponsor or operator?
  • Specific questions that investors should ask sponsors to learn how they manage risks and downturns.\xa0
  • What are the three parts of a deal that passive investors should look at before investing?
  • How to best figure out the reputation of an operator.
  • The importance of alignment of goals and values for passive investors.
  • The importance of having contingencies in place before you get into a deal.
  • What are the specific strategies Bronson is using to protect investors from the market swing?
  • Bronson touches on conservativeness on rent growth or exit caps.

Tweetables:

\u201cI\u2019m just not looking for home runs. I\u2019m not looking to take excessive risks. I\u2019m looking at the long game as a passive investor, and I want people who have done this before.\u201d -Samuel Giordanio

\u201cLook at five deals and then choose one and invest with it, it\u2019ll probably go fine, and then you\u2019ll learn along the way.\u201d -Bronson Hill


Links Mentioned in Today\u2019s Episode:

Passive Advantage Website

Dr. Samuel Giordano\u2019s Email

Bronson Equity Website

Bronson Hill LinkedIn

WS1138 Full Episode with Samuel Giordano

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