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Underwriting the Google Way: Building Maps. Not Numbers

Underwriting the Google Way: Building Maps. Not Numbers

We are often asked how we pick the right deals amongst the hundreds that come across our desk. Doing a deep-dive analysis and underwriting on any more than a handful of deals a month is not realistic. A good part of this business is to not making stupid decisions as...

The Promote – How the Real Money Is Made In Real Estate Private Equity

The Promote – How the Real Money Is Made In Real Estate Private Equity

The key term to a real estate private equity deal is the sponsor “promote”. It’s industry jargon – don’t you love fancy terms! – for the sponsor’s disproportionate share of profits in a real estate deal, provided the project hits certain return benchmarks. The promote is often expressed in the form of a waterfall…

The Cap Rate Is Dead, Long Live the Cap Rate!

The Cap Rate Is Dead, Long Live the Cap Rate!

The cap rate is the single most abused and misunderstood metric in commercial real estate. It’s shocking  how newbies and experienced investors alike continue to refer to it as the be-all-and-end-all metric. The cap rate is nothing more than a measure of value at a...

The Power of Focus – 100x Results with 10x Less Effort

The Power of Focus – 100x Results with 10x Less Effort

How should we focus our energies? This topic has been at the back of my mind every day as we are actively expanding into a new market (more on that later). It is no secret that I am a big fan of checklists. In fact, one of my favorite books is called The Checklist...