I just sold my business and want to invest in real estate PE

[Nick Horob]

I recently sold a software business and looking to allocate a decent portion of the proceeds to RE private equity ($1MM+). I want to be a passive investor.

What would you do if you were me?  What type of deals would you look at?

[Israel Garavito]

@Nick Horob nice work on selling that business!

It depends on what you want as an investor: are you looking for steady, stable cashflow? Looking to value add and cash-out refi? What risk-adjusted return are you comfortable with?

Every good sponsor/manager has very specific acquisition criteria, and each has a different business plan. We focus on multi family that we can refinance in 2-3 years, for example, and hold long term. Others sell earlier. Others focus on core/core plus acquisitions.

First define your criteria and then search out sponsors, not deals. You are betting on the team, not the asset. A good team will make the best of a mediocre asset, and a bad team will tank a great asset.