Finding The Right Partner And The Right Deal

It almost found us once we made the decision to bring the money. So we stopped putting LOI’s out and we started networking within the groups of people that we knew and we just told the story of what we wanted to do. Hey, we want to deploy capital into a deal. And it wasn't much longer after that, probably a month or two, where we got a phone call and I said, we have this storage facility, ground up construction under contract and look at the metrics. We already knew the sponsor and we did a deep dive on the feasibility study. And whether or not those are asset class we wanted to be in and then bet at the sponsor on top of that. And it looked like the right deal for us. And we decided, all right, let's do this. We're going to dive in and we're going to raise the capital and we had to raise $4 million.

And we had people that wanted to deploy capital with us and we couldn't take it responsibly because we weren't flipping that many houses. Majority of our business was wholesaling, so we only chose the right deals to flip for us, so we had money to waiting in the wings. We just couldn't deploy it. So this was a much bigger jump, but it was easier to do than we thought. And we partnered with some folks that helped us raise the capital too. So it's many hands make light work and partner with a couple of people and get our first deal funded and completed and it's a $14 million project. It was a $4 million capital raise. Cube smart is going to manage it, 180,000 square foot storage facility down just outside of Orlando. So our first commercial deal or first passive income project was really large class storage facility. 

When it comes to raising capital, everybody likes the ABC from Glen, Gary, Glen Ross, right? Well, ours is ABR always be raising. So we're, we're constantly having conversations and there's a long cycle to educating the investor about what it is that we do. So at some point we're always talking about either previous feels that we're doing or upcoming deals that we have under contract, so we’ve executed on three deals so far this year, for a total of about $35 million under management. We have another two deals under contract currently for almost another $30 million. So we have deal flow. We've partnered with great sponsors that have consistent deal flow so we raise per project. So we have a private placement memorandum per project that's created. So we are under contract and that's created before we start taking subscriptions for that particular deal.

But really it's, it's a constant conversation because we're talking to new people that are just learning about us. We're talking about people that missed the last deal that now I want to get involved. And there's a pretty hefty education component to our target audience. Our target audience is not typically people that have seen PPMS before. It's newer investors that, it's the 90% of the world that is invested in wall street and mutual funds and 401k's. And it's letting people know that one, the option exists to be able to invest in these deals and then educating them about, why commercial, why the deals that we're doing, why the markets that we're in, things like that. So it's a constant process.