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Updated 9 months ago on . Most recent reply

User Stats

51
Posts
28
Votes
Dominic Richardson
  • Rental Property Investor
  • St George, UT
28
Votes |
51
Posts

What do Money Partners look for in a deal?

Dominic Richardson
  • Rental Property Investor
  • St George, UT
Posted

If you are a PML or Money Partner, what do you look for when someone brings you a "deal"?

Is it Cash Flow, Cap Rate, COC, all three or something else?

If it's cash flow, what is the target amount? 

If its COC return, what is the target?

I understand everyone looks for something different in a deal. But I want to set some parameters when I analysis a property based on  your feedback, so when I find a deal its more appealing when I present it to a PML or Money Partner. 

Thanks in advance! 

Most Popular Reply

User Stats

217
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800
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Dave Meyer
  • Head of Real Estate Investing at BiggerPockets
  • Seattle, WA
800
Votes |
217
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Dave Meyer
  • Head of Real Estate Investing at BiggerPockets
  • Seattle, WA
Replied

@Dominic Richardson Per the other input, I think we need more info. 

First and foremost, are you talking about private debt? Or private equity financing? That will change the answers a lot. And as @Robin Simon, stated what type of deal is this? 

Generally speaking in partnerships, and in all investments, people are looking for the best risk-adjusted returns. So if you're buying a stabilized cash flowing asset, the returns you'd have to offer a PML would be lower. If you're doing a risky flip, the return requirements will be higher. 

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