How do you find, analyze, negotiate, and process a deal? In this episode, we talk about every step of real estate acquisitions with Jae Park of Open Door Capital. Jae has managed $100M+ in acquisitions.
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Jae starts off by sharing how he started in the real estate industry. He breaks down the three core functions of acquisitions namely lead generation, analysis, and due diligence. He also talks about the criteria he considers in finding deals as well as the challenges they face in the mobile home parks space. Listen now and understand every step of real estate acquisition!
Key Points From This Episode:
- Jae shares how he got into the real estate industry.
- Jae started as a part-time underwriter for Open Door Capital and then he transitioned to working full-time.
- The three core functions of acquisitions: lead generation, analysis, and due diligence.
- The strategies and tactics that Open Door Capital is executing to find the best deals in the mobile home park space
- Defining your focus is crucial in finding deals.
- Jae details how to find off-market and on-market mobile home park deals.
- What are the challenges mobile home parks investors are facing as more multifamily investors are also getting into the space?
- Why is it important to have crystal clear criteria in finding deals?
- What are the processes Jae takes when analyzing a deal?
- Jae shares they use a workflow management tool called Asana.
- What are the common mistakes operators make in mobile home parks?
- Jae’s advice on underwriting: make sure to build a good relationship with banks or lenders.
- The daily habits that helped Jae achieve success.
- How do Jae and his team prepare for a downturn?
“It’s really managing the acquisition process right now. You can break it down into three core functions. One is lead generation, so it’s finding deals and that could be talking to a broker, wholesalers, talking to sellers directly just to buy deals. The second part would be analysis, so that would be more of the underwriting side, analyzing the deal and stuff like that. And the third bucket, I take of it as due diligence, once you get a deal under contract, you’re getting it all the way to closing.” [0:05:24]
“You want to stay on top of the market when things are changing so you can adapt.” [0:17:44]
“One of the biggest, most important thing is your lender because you’re gonna underwrite to certain kind of debt and stuff like that. Make sure you build a strong relationship with banks and make sure you have a very good idea of how the lender views the property.” [0:24:35]
Links Mentioned in Today’s Episode:
About Jae Park
Jae has managed $100M+ in acquisitions at Open Door Capital and oversees lead generation, underwriting, and due diligence. Prior to joining Open Door Capital, Jae held a variety of corporate strategy, finance, and engineering roles across various industries. Most recently, he was part of the Global Strategy team at Uber in San Francisco. He holds a B.S. in Chemical Engineering from The University of Texas at Austin.
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