1/ I spoke to 120 #retwit investors in the past 4 months as part of a paid consultation program to teach & advise about the workflows & software systems & staff outsourcing solutions that make it possible to acquire off-market deals w/o brokers.
This is what I learned.
This is what I learned.
2/ [I'll try to convey as much as I can while of course respecting the confidential nature of these business-sentitive conversation so I'll anonymize everything]
3/ Office as an investible asset class, to my group at least, is dead. 120+ conversations and not one about office.
Of course my group self-selected itself for my help and office deals are more available then others, but to me this bit of info is noteworthy.
Of course my group self-selected itself for my help and office deals are more available then others, but to me this bit of info is noteworthy.
4/ Half of the investors are cyclical, other half is anti-cyclical.
Half of the investors I spoke to are investing in things that traditionally perform in strong markets (land for SFR, A & B apartments, STRs). Other half is anti (MHPs, C class).
Strong conviction on both sides.
Half of the investors I spoke to are investing in things that traditionally perform in strong markets (land for SFR, A & B apartments, STRs). Other half is anti (MHPs, C class).
Strong conviction on both sides.
5/ There are groups out there with almost no online presence and very small Twitter accounts buying hundreds of units per year.
The number of large professional investors with 220 followers was really astounding.
The number of large professional investors with 220 followers was really astounding.
6/ In a world where all of us have access to pretty much the same information & in a business where trading on that info is totally okay
there is suprising little consensus around:
- asset classes
- future market conditions
- capital & org structures
No everyone will be right.
there is suprising little consensus around:
- asset classes
- future market conditions
- capital & org structures
No everyone will be right.
7/ Age might be just a number, but it was clear that the younger investors were embracing technology a lot more and making up for their lesser real estate experience by working with experienced mentors and partners.
It seemed harder to engineer it the other way around.
It seemed harder to engineer it the other way around.
8/ It might be just me, for sure, but I did not speak to one female investor if I'm not mistaken.
120+ consultations. All men.
I might be the limiting factor here or not, but the observation is noteworthy.
120+ consultations. All men.
I might be the limiting factor here or not, but the observation is noteworthy.
9/ Taking any action towards off-market property acquisitions, no matter how manual or small, moved the needle.
These folks were all at various stages of knowledge, experience & skill in off market acquisitions, but those who did even a bit of outreach or inbound got results.
These folks were all at various stages of knowledge, experience & skill in off market acquisitions, but those who did even a bit of outreach or inbound got results.
10/ This means that, as I've often said, there is tremendous low hanging fruit to pick when you do anything to automate, streamline or build outbound or inbound real estate acquisitions systems.
11/ Several of my clients are so good that they run beautiful investment businesses relying only on brokers.
Yet they were interested enough to book a consultation & explore these systems. I'm in awe thinking of the leverage they will have if they deploy these systems.
Yet they were interested enough to book a consultation & explore these systems. I'm in awe thinking of the leverage they will have if they deploy these systems.
12/ There is clearly a huge appetite to learn about buying property directly from sellers.
While technology plays a big part in what we do, the key is really to understand the processes and workflows and THEN to swap out manual processes & human labor for software.
While technology plays a big part in what we do, the key is really to understand the processes and workflows and THEN to swap out manual processes & human labor for software.
13/ Former Big 4 Consulting, IB & PE employees understood replacing workhours with automation and systems innately.
Investors with real estate DNA have to make a bigger mental jump, but of course many do.
Investors with real estate DNA have to make a bigger mental jump, but of course many do.
14/ 3 of my clients taught me specific tips & tricks about software stacks. There are investors out there who are crushing off-market acquisitions using software, workflows, staff from all over the world and all sorts of data sources.
Can't share the details, but 1 blew my mind.
Can't share the details, but 1 blew my mind.
15/ Some RE investors are learning to automate acquisitions because they think the good times will last and they want to be able to compete better for deals. Other investors believe a crash is coming & they want to beat out others to buy ALL the deals.
16/ There are LPs out there who are learning these systems to either be able to vet their GPs better.
At least 2 GPs are leveraging these systems to show LPs they're better at buying RE than their syndicate/fund competitors.
At least 2 GPs are leveraging these systems to show LPs they're better at buying RE than their syndicate/fund competitors.
17/ Thanks for sticking with me through the end!
If you'd like to support me please retweet the 1st tweet in this thread and like as many of the tweets as you'd like.
Thank you!
If you'd like to support me please retweet the 1st tweet in this thread and like as many of the tweets as you'd like.
Thank you!
https://twitter.com/jkostecki_rei/status/1473020473344622594
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