Use our deal prep checklist to claim value in your next real estate deal.
Real estate deals, by their very nature, are unpredictable. But something that is predictable—and it’s a common mistake dealmakers regularly repeat—is failing to fully assess the qualitative characteristics of a deal.
Look, you can crunch numbers until your HP-12c smokes, but if you haven’t conducted the appropriate qualitative analysis, you’ll likely still leave money on the table, taken advantage of, and swearing in Klingon.
Experienced deal makers know that their analysis may inevitably turn out to be wrong and new challenges and problems will arise. But adding a couple of layers to the chess board can actually help you maintain the ability to think on your feet and come out a winner. It requires a multi-dimensional understanding of the other party’s circumstances, the deal structure, and the property characteristics.
Here’s how you know if you are a real estate nerd…
Do you research the other side’s motives?
- What is the other side’s time frame?
- Do they have alternatives?
- What are their expectations?
Do you geek-out on deals with “hair”? It seems counterintuitive, but adding complexity to a deal that solves a problem for the other side will create a win-win.
- Will a seller add assets to create a portfolio sale?
- Can you offer a quick close?
- What if you attempt to offset the other party’s tax consequences?
Do you seek out deals that require hands-on real estate expertise?
- Is the property full or empty?
- Is the property in a location that is recognized?
- Is there deferred maintenance?
The nerds here at Cardinal fervently believe that using a checklist like The STP Matrix™ can help you avoid coming out on the losing end of a deal. The STP Matrix™ is like calling tech support for real estate dealmakers—it guides you through the process of discovering value in a deal, the other party’s circumstances, and generate a novel deal structure.
Interested in learning more about how Cardinal Partners uses The STP Matrix™ nerd power to create “wins” for its clients? Pick up the phone, give us a call.