Benefits of Experience and Varying Skill Sets in a Real Estate Partnership
With Percy Nikora, Co-Founder
So when you are also coming into a fund or a syndication, you are again purchasing larger properties. You may be purchasing an asset class you're not familiar with, but you're doing this with an experienced team. So you're, just by participating in that fund or in that syndication, you are bringing along an experienced set of team members. Generally, as the sponsor and the team that the sponsor has put together. So, as long as you do your due diligence on the sponsor and the fund manager, make sure the people who are running the day-to-day show are experienced in that area, you are essentially bringing decades of experience by making that one investment.
The other benefit of going into a fund or syndication is there are so many different elements you have to look into in order to optimize the investment and the returns that some people are, have a great skill set in terms of operations. Others may have a great skill set in terms of constructions, yet others might have a great financial modelling ability. Others may have a really good handle on having relationships with brokers. And you need all of these skills and, you know, legal and finance. So there's probably a dozen or more skill sets that have to come together in harmony in order to successfully purchase, optimize and then sell that asset for the maximum return. And so, you really need somebody who can, has brought all those skill sets together. And that's generally the role of the sponsors, is to identify those skill sets, identify those resources and bring that team together.
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