EP 186: The Sponsor Playbook and the Power of Due Diligence
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In this episode, Mike dives deep into the critical world of sponsor due diligence in real estate investing. He paints a vivid picture of why it’s essential to thoroughly evaluate a sponsor's experience, track record, and communication style—elements that can make or break an investment.
Mike also unpacks the key investment metrics every investor should know, exploring the unique risks and rewards associated with various property types. He emphasizes the crucial role of risk management, providing listeners with a roadmap to navigate potential pitfalls.
But it doesn’t stop there! Mike highlights the art of asking the right questions when engaging with potential sponsors, empowering investors to make informed decisions. He encourages vibrant discussions and networking opportunities that can elevate your investing game. Tune in for insights that could transform your real estate journey!
What you’ll learn from this episode:
Understanding the Sponsor
How effective communication is vital, especially during challenging times. Mike warns against sponsors who rely solely on emails and stresses the importance of having a clear communication plan, particularly concerning unexpected issues and risks in the investment.
Familiarity with key financial metrics like cash-on-cash return, internal rate of return (IRR), and equity multiple is essential. However, investors should be cautious, as projections can be manipulated, and it’s wise to prefer sponsors who underpromise and overdeliver.
Risk Assessment in Property Types
- Three Main Key Risks in Investing
What to anticipate soon, stay tuned!
- Upcoming Webinar
- Facebook Live: "Ask Me Anything" an interactive 30-minute question and answer session on a weekend morning coffee
- The Fortress Capital Investors Club Launch
Connect with us
If you’re a busy professional who wants to know more about growing your wealth through real estate, contact us at welcome@thefortresscapital.com | TheFortressCapital.com
- Website: Surgeon Syndicate
- LinkedIn: Michael McManus
- Instagram: @michaelmcmanusp
- Facebook: Michael McManus
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