👋I don't care about deals that were 'successfully' exited in 2021.

[Justin Goodin]

I don't care about deals that were 'successfully' exited in 2021.

Here's why:

→ Real estate market was on fire
→ Interest rates were at historic lows
→ Market appreciation was outrageous

Sponsors could buy a property
do basically nothing to it
and sell 1-year later for a huge profit.

Those days are over.

The market in 2021 saved a lot of bad deals (and sponsors).

Longer term holds, operations, and successful asset management practices will be critical moving forward.

- -

✅ How can you verify a successful exit?
→ Compare actual performance to original underwriting projections.

Was the property sold due to market appreciation? Or based on the real value from a strong NOI?

What are your thoughts about this? Should passive investors care about deals that were exited in 2021?

[Melanie P.]

The syndicator's "model" if you could even call it that was broken when interest rates went up in 2022. How badly things are broken is starting to play out now. No syndicator has a track record that is worth anything in current market conditions. Nobody should consider sending any money to a syndicator right now. Just buy your own real estate. None of the syndicator deals, even the best of them, wound up having enough upside to compensate for the risk of having zero control of the investment once the money leaves your bank account.