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It is a wild to time be in a business that services RE sponsors/GPs. I get inbounds from experienced teams with true proprietary deal flow and one-man shows just trolling TenX.
Hands down the *biggest* mistake I see new sponsors make is grossly overestimating the amount of equity they can raise for a first deal or fund. I'm talking $5M+ on a true first deal.
I understand people may have family or professional networks that can maybe take that down, but I'm not sure they are fully understanding the career risk of a transaction that size, especially if you are burning a lifetime worth of contacts to do it.
The absolutely only way to succeed long-term is to be very focused on LP outcomes and experience working with you. You are going to be doing literally everything for the first time (sending dist. check, prepping k1s)
I just need to assess whether they can cover my fee, I have no idea how LPs are assessing the deals put in front of them without vetting ALOT of sponsors.
