LP Investing Digest #48
LP Investing Digest #48
Tweets on investing, and anything else helpful to LPs
Last premium post: Track Record Audit - what you should look out for in a track record slide with examples of misleading statements
Last free post: LP Investing Digest #47 & Full Article Index
Announcements:
LP Cohort: Review 4 deals with me and other LPs to learn what to look out for in deals. Please reply to this email if it’s of interest.
I’m sure you’ve heard about the 50 bps cut this week; I thought this was an interesting take from a respected person… I think what he’s alluding to here is that the economy is already in a challenged state (i.e. the cut came too late), which might have implications to go-forward NOI assumptions in property investments.
I wrote on the implication of fed cuts to distressed deals here
A good point…and while we’re on this topic I’d suggest reading we renovated, but will they come?
I think this has some interesting implications to multifamily, the single family home housing shortage argument, and housing formation/size more broadly
A reminder that if you want to invest in real estate but need liquidity, public REITs are an option to explore.. I wrote on the pros/cons between REITs and private syndications here
A useful table to understand the relationship between Debt Service Coverage Ratio requirements and cap rates
See thread therein on how to evaluate your first strip mall (certainly applies to becoming an LP in one too)
An inside look at how to value land prices in NYC
Have a wonderful weekend!
Thank you for reading! I genuinely hope you found this helpful - the best way to say thank you is to spread the word.
I advise LPs on existing and potential positions and write articles here weekly on what I see in the marketplace that could help you invest better. You can find me on LinkedIn or Twitter.
Whether you’re an LP, want to learn to become one, or affiliated with LPs (GPs, Attorneys, CPAs, Wealth Advisors) I hope you’ll consider subscribing and sharing this post to help others make more informed investment decisions.
When you’re ready, I could help you in 3 ways - simply reply to this email if one is of interest:
Limited Partners:
Potential positions - you’re considering investing and need an independent opinion
Existing positions - there’s a lack of communication, you’re concerned about fraud, or perhaps you got a capital call request and you’re not sure how to proceed. I have also helped LPs with a “post-mortem” analysis on deals that didn’t work out - it’s important to learn these lessons as opposed to just blaming the GP.
LP Cohort - review 4 separate memos together with me and other LPs to learn how to vet LP investments.
LP Topics Seminar - an ongoing biweekly 1 hour meeting with other LPs where we'll go over investment decks, capital calls, distressed situations, and modeling. This is meant to provide a deeper look into existing LP investments. Please reply to this email if you’re interested.
LP Investing Lessons Podcast - learn from others investing lessons here. if you're an LP with lessons learned from a successful or unsuccessful investment, consider replying to this email to share your knowledge with others. Both the LP and GP in the recording are kept anonymous.
LP Community - join my free 2,500+ member LP community on Twitter
Find GPs in unique asset classes/geographies on my monthly Twitter intro post (see LinkedIn’s post as well for more)
General Partners:
Deck review - I’ll look over your marketing materials from the perspective of an LP and provide slide by slide commentary to improve your pitch
Investment review - I’ll provide independent feedback on an opportunity you’re pursuing
Capital call advisory - you suspect that you’ll need to make a capital call, but aren’t sure how to proceed or communicate the message.
Other - anything from waterfall/fee advisory to disagreements between co-GPs on the proper path given a set of circumstances
General Consulting: modeling, strategic advisory, underwriting training, etc.
If you’d like to speak on the phone, you can reach out to me any time at aleksey@hey.com