WHAT MAKES AN ATTRACTIVE BORROWER

Everybody knows the old saying in real estate: location location location. In my deal-making part of the industry, there’s another version: reputation reputation reputation.

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Being known for good judgement smooths the deal making process amazingly. This is particularly true when it comes to raising capital. This insight is why I have always focused on the things that build reputation. Think long-term, build relationships, focus on expertise, and always demonstrate discipline. Together, these make it easy to tap high quality capital.

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To attract investors (and win their repeat business), we first need to identify great opportunities. Unlike many in the investing world who are in thrall to the deal, we believe that no is our friend. There are a thousand reasons to say no to a deal, and every one of them is important.

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Warren Buffett once said that “there are no called strikes in investing” and I live by those words. Of course, the discipline to say no is useless without the ability to separate the good from the great. That’s why our team has developed deep expertise in a lucrative niche of the commercial real estate market — single tenant net lease properties.

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Saying no means missing out on some winners. That’s a price I will happily pay to maintain a reputation for excellence. One bad deal could sour the trust of our investor network, so I am laser focused on getting it right, every single time.

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Many deals require raising debt as well as equity, so bank relationships are critical. Banks love Alliance’s reputation for smart real estate deals and creditworthiness. The banks that know us want to fund our projects, and that leads directly to returns for our investors.

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While low interest rates might be the easiest way to juice returns on a single deal, over the longer term, quality service from partner banks is often worth more. The ability to make adjustments and close quickly can be the difference between a great deal and no deal. The best opportunities rarely sit on the market for very long and few things in business sting me as much as a deal that fell apart because things moved too slowly.

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As with all business relationships, I see value in long-term repeat business. To earn favorable treatment from banks, we do everything we can to be an attractive borrower. We always do thorough due diligence and communicate quickly and clearly. It helps that we invest in properties that banks love, with healthy cash flow, a strong competitive position in the local market, and long-term tenants with experience in their industry. And, whenever possible, we refer more business to our favorite banks.

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Over the years, Alliance’s success has become a virtuous cycle. By specializing in a lucrative industry niche we find great deals. Staying disciplined means we don’t proceed unless everything is right. And, our unblemished record means we can raise capital easily and close deals quickly, helping ensure that we continue to execute the best deals possible.

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Call me at 847-317-0077, email me at breinberg@alliancecgc.com, or tweet me at @benreinberg or @alliancecgc if you can submit us a property to acquire and/or would like to invest with us. For further information on investing with Alliance, please click here.

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My Best,

Ben

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