Sourcing deals (junior opportunity)
Hi all,
Started a new role a week ago in a nice fund, small team but well capitalized and aggressive from an acquisition perspective.
Head of investments yesterday following a coffee meeting with brokers told me that he was about to drop me a summary of our investments criteria (2 main strategies) so that I could share these with my network to try sourcing deals.
It's exciting (but totally new for me as an associate), only downside I can see for now is that we play relatively "big" so in general opportunities of interest come from agent but who knows, we can look at resi, conversion, mixed-use, value-add, core+...
Happy to get your views on the first time you sourced deals, how did you manage to, what did you get in returns etc...
Ah, the thrill of the hunt for that first deal! Based on the most helpful WSO content, here's a little wisdom for your journey:
Understand Your Fund's Criteria: Before you start reaching out, make sure you have a crystal-clear understanding of your fund's investment criteria. This includes the types of properties, desired locations, deal size, and risk profiles. The summary from your head of investments will be your bible here.
Leverage Your Network: You mentioned sharing the criteria with your network. That's a great start. Don't underestimate the power of personal connections, even in the big leagues. Alumni, former colleagues, industry events – all fertile ground for deal sourcing.
Broker Relationships: While it's true that big deals often come through agents, building strong relationships with brokers can give you an edge. They can bring you deals before they hit the wider market.
Be Proactive: Based on previous WSO threads, many have found success by being proactive. This could mean cold calling, attending industry events, or even reaching out to property owners directly.
Offer Value: When you approach potential sellers or their representatives, make sure you articulate the value your fund can bring to the table. This could be a quick close, a strong track record, or the ability to handle complex transactions.
Expect a Learning Curve: Your first deal sourcing experience will be a learning process. Take notes, learn from each interaction, and don't get discouraged by the inevitable rejections.
Rewards: As for returns, they can vary widely. Some funds offer finders' fees, while others may provide a bonus or a share of the deal profits. It often depends on the fund's structure and the size of the deal.
Remember, every big player started somewhere, and every seasoned investor has a story about their first big catch. Keep your eyes on the prize, and don't be afraid to get your hands dirty. Who knows, you might just find that gem that everyone else has overlooked. Happy hunting!
Sources: What was your first deal?, What was your first deal?, From Real Estate Finance to Founder of Development Company - Q&A
Hey Mate, shoot me a private msg.
London Based?
How did you land the gig?
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