Day 2 of the Best Ever Conference provided a packed agenda featuring a host of seasoned CRE experts ready to impart a wealth of knowledge. Sessions included Joe Fairless’s Best Ever Money Raising Metrics, Bo Parfet’s Impact Investing to Drive Social Change, and Travis Watts’s The Velocity of Capital — How to Compound Your Returns. Keep reading for our top takeaways from just a few of the day’s most insightful presentations.
Best Ever Money Raising Metrics + 5 Tips for LPs
Co-Founder, Ashcroft Capital
Best Ever Money Raising Metrics
Joe recommends implementing the following 11 metrics consistently for 12 months in order to obtain two incremental deals.
Marketing Metrics: Attract!
- Qualified lead cost per acquisition (CPA)
- Completed legal documents CPA
- Number of introductory conversations scheduled
- Top lead sources ranked by CPA
Investor Relations Metrics: Convert!
- Percentage of completed legal documents per investor relations team member
- 90% call quality monitoring score, measured weekly by the investor relations team
- Workshop score: 70% participate in a follow-up meeting
- Micro commercial real estate celebrity progress — your investor relations team members should be micro-celebrities in the commercial real estate sector
Investor Services Metrics: Close!
- 90% mail and call quality monitoring score
- QA process — two improvements per month
- Survey results
5 Tips for LPs
As a limited partner in more than 150 deals, Joe has learned a thing or two about what it takes to vet sponsors and deals. Here are his top five pieces of advice for LPs:
- Determine whether the GP has evolved with the times when it comes to income, expenses, debt, and exiting. Pay special attention to their attitude and level of acknowledgment.
- Make sure there is no disconnect between the marketing package and legal documents.
- Remember that size doesn’t matter — it’s all about returns.
- There must be a marketable, underlying asset to recoup losses if things go sideways.
- Establish an additional income stream like personal loans.
Risking It for Good: Impact Investing to Drive Social Change
Managing Principal, Head of Growth, DLP Capital
“The two most important moments of your life are the moment you’re born and the moment you know why.” Bo Parfet knows exactly what he was put on this planet to do — and impact investing is a key factor in his mission.
What Is Impact Investing?
Impact investments are made with the intention to generate positive measurable social environmental impact alongside a financial return.
These investments can be made in both emerging and developed markets. They target a range of returns from below market to a market rate, depending on the investors' strategic goals.
“Impact investing merges the distance between your head and your heart,” Bo said. "It challenges the long-held view that you can only do good by donating to a nonprofit."
Elements of Impact Investing
- Investment with return expectations
- Range of return expectations and asset classes
- Impact measurement
For more insights from Bo Parfet, check out his latest book, The Precipice of Life.
The Velocity of Capital — How to Compound Your Returns
Director of Investor Education, Ashcroft Capital
What Is Velocity of Capital?
Velocity of capital is an investing strategy that requires you to keep your money moving from investment to investment, turning over as rapidly as possible, and compounding your returns in the process.
There are four steps that comprise the formula for this strategy:
- Sell after one year.
- Reinvest into another deal.
Benefits of Velocity of Capital
- Long-term capital gains
- Real estate tax advantages (e.g., depreciation)
- Leverage (mortgage)
How Profits Are Generated Using Multifamily Value-Add
- Raise rents.
As Benjamin Franklin once said, “An investment in knowledge pays the best dividends.”
Want more tips from Travis? Tune in to his Best Ever Show podcast series, Passive Investor Tips. New episodes air every Thursday.
More from BEC2023:
Best Ever Conference Recap: Day 1
Best Ever Conference Recap: Day 3