Reader

50 people RSVPed to the first Investor Exchange. I reminded them the day before, five hours before, and an hour before.

13 showed up. A free RSVP is a wish. Showing up is a decision.

Here's what the 13 heard:

Debt is chasing deals while equity flinches. On bigger projects, lenders are quoting in the fives. They pulled back during the maturity scare, and now they have to put money back out. Meanwhile equity investors are acting like it's 2008. Both can't be right.

Insurance rewrote the pro forma. I used to underwrite about $250 a door. Recent deals in the room: closer to $1,200.

A rule from an owner of thousands of Class A units: when rent growth runs below inflation, that asset class is in a recession. Run a 60% expense ratio with 5% expense growth and you need 3% revenue growth just to keep NOI flat. I built a free tool for exactly this: Run the stress test →​

And the four questions I ask before I invest: Has the sponsor finished and exited a deal? How are fees, pref, and the waterfall structured? What has to go right to return my capital? Who funds the shortfall if the plan slips?

Next live room: Thursday, November 5th [RSVP for November 5 →]· National webinar: Thursday, October 22nd. [Register for October 22 →]​

Jason