Commercial Real Estate "Flight School"
How the CRE Flight School Can Help
The training is designed to improve the skills and business opportunities of its cohort members and it creates a level of expertise that allows the operator to scale faster, execute smarter, and align their processes with the best practices expected when interacting with the institutional sector.
Litmus
Testing
Objection
Smoothing
Capital De-Risking
Fact
Filtering
Litmus Testing
[ LITMUS TESTING ]
Many operators struggle to convince equity investors and lenders they have a sensible business plan, understand their deal’s key risk factors, and how to manage them effectively. This is how we teach operators to convince them.
Sample Deal Analysis & Doc Enhancements
“Litmus Testing helps operators “look the part” of highly seasoned real estate professionals by identifying weaknesses in their business plans, bios, and operations, and outlining a strategic plan to mitigate these issues before approaching lenders.
There are 4 components to our Litmus Testing process:
Sponsor Doc Analysis & Enhancement
Property Doc Analysis & Enhancement
Strengths & Weakness Summation
Risk Mitigation Plan
Objection Smoothing
[ OBJECTION SMOOTHING ]
Snapshots of Sample Client Offering Memo
There’s a pronounced difference between knowing your business plan “in general”, knowing the plan of execution, and knowing how you intend to mitigate all of the risks. Get this right, and you will receive faster lender response times, increased lender interest, fewer lender rejections, more negotiating leverage, and better loan terms.
There are 5 components to our Objection Smoothing process:
Perform Objection Analysis
Create Two-Tier Response Vault
Prepare Offering Memo
Address Lender Inquiries
Conduct Real-Time Objection Management
Capital De-Risking
[ LOAN DE-RISKING]
Equity and Debt capital want to fund deals, but Sponsors need to make sure the details of their capitalization offers are as attractive as the preliminary term sheets.
Snapshots of Sample DLS-Negotiated Term Sheet Improvements
The DLS Loan De-Risking Process is a 4-step method that has proven to generate better financing terms and/or improved loan pricing.
There are 4 components to our Loan De-Risking process:
Term Sheet Review & Analysis
Needs vs Wants Assessment
BATNA Strategy Session
Term Sheet Negotiation
Fact Filtering
[ FACT FILTERING ]
“Fact Filtering” is the process of making sure you don’t overshare or say anything that can get your loan or equity investment offer pulled.
Snapshots of Fact-Filtering Correspondence
There’s a thin line between being transparent and oversharing. Getting through a due diligence process is a nuanced ballet of timing, accuracy, presentation, and discernment. Disclosing a piece of information too soon, too late, that wasn’t necessary, or not at all can be the difference between a “Yes” and a “No”. In this regard, we teach operators how to pass the test and provide best practices that serve as a “cheat code” to interacting with the capital markets in the future.
There are 4 components to our Fact Filtering process: