Hi Matthew,
Full disclosure this is my company and I am the owner.
My company focuses on 2 ways of INVESTMENT
1. I have clients that buy STNL single tenant properties or MTNL multi-tenant retail centers. I work as the principal broker on those deals making a fee for my clients that want to buy themselves and own directly.
2. I am a syndicator for retail VALUE ADD deals. I have zero interest in syndicating stabilized properties that are at full value with no upside. I can keep closing real estate transactions as a broker and make 100,000 at a time instead of that. So for me to take on a syndicated value add deal I want large upside on the EXIT for my time.
There are some syndicators out there in any asset class where they live off of the FEES. So when you invest with any company you need to ask yourself this question. IS the sponsor making most of their money off of the upfront fee and upside could be limited on EXIT?
A benefit to smaller retail deals is the exits can happen in timelines of 2 to 3 years in some cases where as an example multifamily they typically ask for 7 to 10 year commitments of capital or longer. An equity multiple of 2 achieved in 3 years can be better than equity multiple of 2.3 but it takes 10 years to get there.
So there are a lot of metrics based on what type of accredited investors you want to be. Some investors like syndicates with almost zero upside and they are just getting the preferred return, others are good with taking some return today and the returns increasing over time with good upside, yet others do not really need the cash flow today and are fine with a higher overall IRR that takes longer to achieve because it is a total turn around, ground up development deal, etc.
Say as a an example you want to own a high quality property completely yourself but not there yet in capital (1,000,000) down on a 3 million NNN property. The passive partner example if you have 200k,300k etc. might be a good fit because putting 200k down on something yourself is likely a rural type area with weak tenant and higher risk.
I hope this helps.
Thanks for considering my company.
