My Million Dollar Strategy - Real Estate Private Equity
So here goes....
Buyers:
I have an old list of all the REPE core, value-add and opportunity funds from RE Alert (Thanks!).
Also I have a healthy list of smaller funds/investment groups by googling: "investment criteria core-plus Florida". And I have an old list from 2013 of real estate buyers from Crittenden when I was a subscriber. Going to track/stalk the headlines of my local business journal for the last 3 years.
Then I put each buyer into their respective buckets, sub-buckets and sub-sub-buckets. Bucket 1 - investment type: retail, multi, office, land; sub-bucket: investment strategy: core, core-plus, value-Add or opportunistic; sub-sub-bucket: investment size: $1m to $10m, $10m to $50m, etc.
Next......
Properties:
I track all the properties for sale in my local MLS (luckily I live in South Florida so our stuff should be desirable to a wide range of investors from all over the country) and pick the best of the worst and re-package the deal while adding more in depth analysis: NPV, IRR, DCF, etc.
My thesis is 1) most out-of-area investors won't see the stuff on my local MLS, 2) most brokers aren't going to reach out to these investors, and 3) these deals on the MLS are going to be under analyzed so that is my opportunity to add value to the transaction besides just re-packaging and email blasting.
Benefits:
1) Sellers definitely wants to sell.
2) Buyers definitely wants to buy.
3) Seller is offering a commission so I don't have to ask for it from the Buyer.
I've read a lot of articles from people in high finance and I never knew how important cold calling was even tat the highest levels of business. So...even with a nice email and package I know I'm still going to have to hit that phone hard.
Feedback required!
Nothing?
What kind of feedback are you looking for? This isn't a new concept.
Is it a viable strategy or a waste of time?
Congratulations, you just invented investment sales brokerage? Uhh...... If you don't think fund buyers are getting pinged on the regular from middle market (sub $50M) investment sales brokers from Marcus and Millichap plus younger guys at literally every single other brokerage house, you are in for a rude awakening.
I know the guys at MM and their deals are well marketed, no doubt about it. I'm looking at deals from the other crowd residential brokers and owners marketing their own listings.
Why are you asking people on a forum to validate your idea? Sounds like you already have a plan and once you attempt to execute it (doesn't really seem that difficult) you'll have all the validation you need.
Like Ray Dalio says stress test your ideas.
Ideally I would like to hear from someone who has done it and get the pros and cons.
Maybe, someone can add a different perspective and 2.0 my idea.
Based off my experiences, the smaller the deal, the bigger headache. I wouldn't touch anything with a residential agent other than a single family home.
Very true. Seems to be true in construction as well. I wonder if anyone has studied the phenomenon.
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