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All Forum Posts by: Xavier Cabo

Xavier Cabo has started 6 posts and replied 14 times.

Post: Questions on closing a deal with senior care business

Xavier CaboPosted
  • Real Estate Investor
  • Conyers, GA
  • Posts 18
  • Votes 2

Good morning BP community, 

I am trying to complete a deal with a senior care business looking to expand their operations. The business has several properties in the state and the owners want to add 3 locations per year over the next few years.They usually own 20% of the properties and the remaining 80% is owned by an investor. They guarantee a 20% annual return and have triple net arrangements. I have identified an investor who would be very interested in this deal. My dilemma is two fold though:

  1. Can I get in this deal to close the first property beyond collecting a finders fee? I'd want a small equity percentage since I am the one brokering that deal in the first place, I am putting together the deal proposal, and I also would be actively involved in finding the property. If this is an acceptable practice, what would be a reasonable percentage to ask?
  2. If this first deal is successful, how can I ensure that the business and my investor don't skip me on the next deals? Can I have them sign an exclusivity agreement that requires them to include me on future projects?

Thanks in advance for your input.

Post: Investment requirement questions for private investor

Xavier CaboPosted
  • Real Estate Investor
  • Conyers, GA
  • Posts 18
  • Votes 2

@David Thompson, thanks for your advice! I will definitely check out your website and listen to these podcasts. You are bringing up a very important perspective of how to best engage prospective investors. 

Since I have a business consulting background I am used to go through series of questions with clients without making it feel like an interview or investigation so I will make sure to do the same when I meet with him. 

He has been in this space for a very long time so I will see on what topic(s) other than my business and its strategies I can educate him. He is more of a traditional real estate investor so I have some innovative ideas to share that would add value to his investment business. 

I appreciate your feedback. 

Post: Investment requirement questions for private investor

Xavier CaboPosted
  • Real Estate Investor
  • Conyers, GA
  • Posts 18
  • Votes 2

Thanks @Brian Adams for taking the time to provide some feedback. I have actually read a bunch of your posts and am familiar with your company since I have been reading a lot about multifamily and apartment complex investing in the last few months.

The role of this individual would be to provide money for this potential deal. 

Your points make a lot of sense. The reason I chose to frame the dialog from this angle is that I wanted to keep the discussion open, learn more about his current investment criteria, and not close any door. This would be my first deal and even though I like the multifamily property niche and as long as it aligns with my goals, I am open to another real estate play to get started and build the right team, especially since he would be a great long-term partner. 

Regarding your last point, I still need to finish a few items to clearly show him that we should work together and that I am the right partner for him.

Thanks again!

Post: Investment requirement questions for private investor

Xavier CaboPosted
  • Real Estate Investor
  • Conyers, GA
  • Posts 18
  • Votes 2

Good morning, I am preparing for an upcoming meeting with a private real estate investor and I compiled a list of questions to better understand his investment requirements so I can present the right deals to him. He has been in this space for a couple of decades and has a broad portfolio ranging from small multifamily properties, to 100+ unit apartment complexes and shopping malls.

  1. What type of real estate investments are you currently interested in?
  2. What investment strategy do you prefer?
  3. What markets are you interested in?
  4. Would you consider a deal outside of these markets?
  5. What property price range are you looking for?
  6. What type of ROI are you looking for?
  7. How do you like to structure your investment deals?
  8. What is your ideal investment duration?
  9. If equity deal, what ownership percentage do you want?
  10. If debt, what interest rate do you want?
  11. How involved do you want to be with the management of the property?

Please let me know if you think these questions are appropriate and if I should ask additional questions.

Thank you for your help.