@John Casmon thank you very much for your input!! With respect to your questions, some of them have never invested in real estate before. Therefore, when they see things like 17% IRR, and compare it to the 8% average stock market returns, they are blown away. Then when I tell them additional details, not included in the underwriting that would yield a potentially higher forecasted return, coupled with the fact that one of the GPs was in a similar deal located close by which sold after only 2 years for a 52% return (recently), it obviously excites them.
The partners have visited the property several times, have talked to locals, and have performed secret shopper. We have all reviewed the comps, as well as other full cycle deals (for example the one I listed above). The group that we are partnering with on the sponsor side has a relationship with the property management company in the area that also assisted in finding opportunities. The business sector is actually one of the highest growing in the country, and the rent growth is reflective of this. The hurricanes did not impact this area, and no insurance claim was issued due to hurricanes while the seller has owned the property (for the past 11 years).
I think you have a great point about not "selling" the offering. At the end of the day, it's an opportunity.
Thank you again!
