All Forum Posts by: Kenny Adilet

For a while now, I have had a strong urge to sponsor commercial real estate investments via private capital funding. Some of you may know this from a recent post I just made. Now, however, I am looking to do it during school so I can hit the ground running after... I know crazy right! Maybe a miracle can happen to make it work.

So I began conjuring up anything that can entice investors to give me a chance with 0 track record and would like anybody's opinion on it. In order to minimize risk these are the things I thought of.

I first thought of the least riskiest investment strategy: Core/Core+. For the financial analysis, I would make sure ~100% recovery for the investors in the base case, downside case, and the "oh my god" downside case. I also do not plan to charge acquisition fees or management fees. I may not even take out a portion of the cash flow or disposition. PPM(506c) and due diligence documents are also crafted by credible firms.

As you can see I don't really seek money, but rather experience; I, myself, may even lose money doing this. Whatever makes the investors happy with their decision.

This was a short rant, however I can now have it criticized on if it will work. Any feedback is appreciated!

Thanks guys,

Kenny Adilet

0 Votes

Originally posted by @Brant Garner:

I like the ambition, I do!
My idea for a more sustainable future would be to get a job at major CRE firm brokerage in a junior role. Work with a senior agent in your preferred specialty. You'll get to know all the deals, all the players etc, lenders etc. Commercial RE is still about relationships even today.
This experience will give you all the technical skills and underwriting techniques that will be invaluable in your goal endeavor.
Doing all this will also give you the credibility you’ll need to attract the investors you seek.
Being in the middle of a real estate deal just can’t be taught in a classroom.
Good luck and keep hammering away at it! You’ll do well no matter what. You’re already ahead of most of your peers by just thinking and dreaming of where you want to go.

Brant, thank you for your guidance! I agree with the points you mentioned as well. As I plan my next move, I will keep them in mind.

0 Votes

Originally posted by @Marc Winter:

Kenny,

Congratulations on thinking ahead and getting started in this wonderful business!

If I read you correctly, you want to sponsor a rei deal with private money, correct? Then go on to do pro forma, throw some $$$ in the pot and get it done. No experience, just books.

A little advice (since you asked for it): umm, I think you are just a wee bit ahead of yourself. My favorite expression in cooking: first you get the pan hot, then you put the meat in. Favorite in RE: first you find the deal, then the money comes to you.

While I would NEVER discourage an excited person eager to get started, I would test the waters before diving off a high board. Maybe find and wholesale a deal, maybe partner up with an experienced investor or broker, or maybe learn how to 'find the deals'.

Putting together syndications is really not so difficult; putting together SUCCESSFUL syndications is another story. It sounds like you have most of ducks in a row with the concept. What I think is missing at this point is the deal and experience. Hard to get one without the other.

But possible! Keep moving forward. Good luck.

Thank you Marc for your response! I will be sure to keep your suggestions in mind as I move forward!

0 Votes

Hello all!

A little about me. I am still attending university here in the United States, come from a Finance background, and I haven't had any real exposure to CRE yet with 0 track record. With that being said, I am hoping to get some guidance and critiques on my plan to get my foot in the door.

After some thinking, I was initially wanting to sponsor a real estate investment deal via private capital funding. Once I am able to source a potential deal, I would work with a firm to perform the financial analysis such as creating the pro forma, underwriting financial models, partnership structuring, etc. in order to increase credibility on the financial side.

Next is when I would be working with a legal team to draft the PPM (506c), Subscription Agreement, Questionnaire, and so forth. The pitch deck will also get crafted alongside in anticipation for any investors that want to give a nobody like me a chance.

I was thinking that with my lack of a track record, I can hopefully make up for that with presenting an actual deal rather than a fund's unknown future for example, as well as credible firms crafting the financials, PPM, and due diligence documents.

If I can get some opinions on inherent risks associated with this as well as any ways to mitigate them that would be much appreciated!

Thanks,

Kenny Adilet

0 Votes

All Forum Posts by: Kenny Adilet

Kenny Adilet has started 2 posts and replied 4 times.

Post: Critiques on the Plans of a Student

Post: Guidance for a Non-CRE Background Student

Post: Guidance for a Non-CRE Background Student

Post: Guidance for a Non-CRE Background Student