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THREAD: Some of you who I have talked with know I am an acquisition and asset manager for a firm. Today I closed by FAR the largest acquisition of my career. This deal had been brewing since July & was an absolute pipe dream at the time. I learned a ton & wanted to share: (Cont)
1. Go BIG. This one deal was 3x the volume of all our other deals this year combined. I put it in front of our principal because he had joked that sometimes it’s easier to ask investors for $1 million than $100k. We found a solid deal to test that theory. (Cont.)
2. Look for the Angle. This deal should have NEVER been in our league. We got in because it was the nicest market in an MSA most would look over because of the seat. Additionally the lease up took 2 yrs and trailing financials made sizing debt hard. We got creative. (Cont)
3. Don’t over reach. We got this deal under whisper and submitted the same Best and Final as initial offer. I actually almost didn’t submit B&F because I was already there. Told broker and they said resubmit anyway. (Cont)
4. Nothing goes perfect. This deal went really smooth, but twice I got a bit over confident and both times a shoe dropped that I had to juggle. It never killed the deal, but made me sweat and get refocused. (Cont)
5.) Work with a great team. This would have been impossible without the right team members in the right places. They navigated their lanes at a higher level. (Cont)
6.) See the transaction as a partnership. We had a lot of give and take and tried to be accommodating within reason with the seller and they did the same for us. It the end, both sides were happy and they have expressed interest on having meetings about future deals. (Cont)
7.) I may still FAIL. Acquisition is just a small portion of the business plan. We still have to operate this property and make it attractive to sell. That’s a daily battle to try and win for the next few years. (Cont)
I’m happy to give other insights and lessons I’ve learned the last few years on other deals as well. People in this space such as @TheRealEstateG6 @EstateRanger @JumpInRE @9to5REPE @moseskagan can all share similar thoughts and insights. Ask. Most are willing to answer.
