MF deals on the side
Any MF development or acquisitions guys have any experience doing smaller deals on the side? I'm the acquisitions/development analyst for a sizable local shop and have the opportunity, given my skillset, to essentially be the sponsor in a smaller-scale ($2mm total capitalization) platform with family and friends. Most likely looking to acquire one or two local assets. The size of these deals would be substantially smaller than anything my shop would even consider, so they would not be in competition.
In particular, i'm hoping someone can give their opinion on how well my knowledge would scale going from working strictly on institutional size deals ($40mm+) to something that would be much smaller.
Hey Prop Joe, I'm here because nobody responded to this thread after a few days...maybe one of these resources will help you:
No promises, but thought I'd mention a few relevant users that work in the industry: @emerald123" @Dbaker28" jbsalib
You're welcome.
don't have much to add, but i'm interested as well
If you are working at an institutional shop, you likely work at a firm with a decent amount of employees so responsibilities are distributed among different experience levels and specializations. The biggest difference in being a direct sponsor is that everything will fall on you. Also, the financing terms/opportunities will be completely different. That being said, the hardest part for most people moving out on their own is raising capital and it sounds like you have that somewhat lined up so I'd encourage you to make the leap. Once you become a principal its hard to look back at being a monkey.
That being said, you mention your experience as an acquisitions/development analyst in which case I would caution you that tends to exclude project management/rehab, leasing, or asset management.
Also check your employment contract, it could very well prohibit exactly what you are thinking about doing.
Would you own and manage? If you're the one leasing apartments and doing the monthly accounting, I'd advise against it.
That said, if you can put together a good deal that supports a 3rd party manager handling the day-to-day and you are simply asset managing, then go for it.
What type of deal? Ground up, value add, etc? Knowledge scales well among similar types of construction (concrete, steel, wood, etc) and interior design guidance is similar among all.
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