I received a bunch of requests from #retwit as to what qualities make GPs successful. Here’s my top 10 based on my 22 years of representing GPs, LPs and being a GP and LP investor myself….let me know what’s your top 10.
1. Put the interests of your LPs over your own.
2. LPs judge GPs as to how they handle tough times….not how things are going during boom times. Be upfront when there is bad news. That’s when you are really judged.
3. Communication is key. No less than quarterly do my top GPs communicate with their LPs.
4. Stay in your lane. Don’t be everything for everyone. Know your asset class better than anyone else. Hard to be a top GP if you aren’t a true expert on your asset class.
5. If you are buying properties in a new market, you need to know that market inside and out. What neighborhoods are best, what side of the street, demographic trends, who are the top brokers.
6. Visiting your properties at least multiple times a month during heavy value add and no less than quarterly upon stabilization.
7. Selecting lenders that will answer your phone calls after closing. Too many GPs get wooed by cheap rates but then the loan gets sold and they can’t find anyone to take their calls. Instead, find out who is easy to work with when you need their assistance.
8. Remember that real estate is a long term game where having repeat investors is vital. Fees are attractive and keep the lights on, but be careful not to turn away LPs with over aggressive fees.
9. Make the documentation process easy for investors. Docusign is a must. Give them time to review. Don’t cram it in a few days before closing. Have updated tech interface so investors can easily check.
10. Last and most important, always preserve investor principal. I’ve seen GPs write large checks to cover unexpected rainy days!!
• • •
Missing some Tweet in this thread? You can try to
force a refresh
