Insights from our West Point CRE Roundtable

Every quarter, I host a Commercial Real Estate chat with fellow West Point real estate investors! Special thanks to Curtis Cullen and Michael Euperio for their gems of knowledge.

Our discussion revolved around:

• Loan terms
• Strategies for tax filing as a real estate professional
• Investing as a limited partner (deeper dive below)

As a Deal Sponsor myself, it was enlightening to hear how other Sponsors evaluate deals to invest in. Ultimately, this insight will alter how we pitch deals, our deal decks, etc. Here are my notes:?

When investing as a limited partner, you want to look at these three things in order: the Sponsor, the Market, and the Deal/Property.

1. The Sponsor: This refers to the individuals or entities responsible for managing the investment. Evaluating the sponsor involves assessing their credibility, track record, expertise, and ability to manage the investment successfully. It's important to start here because the sponsor's capabilities can significantly influence the investment's outcome.
2. The Market: Key market metrics include vacancy, rent growth, employment trends, and other factors that can affect the investment's performance. Understanding the market helps to gauge the potential for growth and risks associated with the investment.
3. The Deal/Property: This involves looking at the financials, the condition and location of the property (if applicable), the terms of the investment, and any other relevant details. This step is about understanding what exactly you're investing in and ensuring it aligns with your investment goals and criteria.

How do you all evaluate investments? Does it vary drastically from this? Let me know your thoughts in the comments below!