The Wheel Has Been Invented: Why Acquisitions As A Service Makes for Better Business in CRE

Posted by Travis Farese on Apr 15, 2021
Travis Farese
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Even in this era of technology-driven transformation, a new service that disrupts long-held operating practices is still viewed with skepticism.


Consider what we do: Acquisitions-as-a-Service. Multifamily investments have been a pillar of the commercial real estate market for a long time; if anything, the market has arguably picked up steam and visibility in the past few years. Through it all, many practices have largely stayed the same. So why retain a third-party provider now? Why fix something that isn’t broken?


For one good reason: There are better ways to do it.


In current scenarios, every acquisition requires huge expenditures of time, money and manpower. The numbers alone are brutal: Ahead of every acquisition, the investor evaluates 200 or more properties, digs in on 30 to 60, negotiates on 10 to 20, and eventually, maybe, acquires. . .one. It gets worse: While the ROI through this approach is often questionable, there’s an even greater cost in missed opportunities.


Does that sound like good business, or can it be improved?


Things are like this because even the most prolific investment entity makes only a handful of deals every year. That means starting from scratch each time—going through all listed properties in the target region, submerging researchers in massive volumes of raw data to develop intelligence on each neighborhood’s prospects, seeking out properties that may not even be listed, and so on.


Now consider again what we do at Offerd. With the Acquisitions-as-a-Service model, the information and expertise are already at hand. The wheel has been invented, and it’s right there.


Offerd brings to the table the right blend of research, industry expertise, negotiating experience and far-flung connections. We narrow the scope of search parameters to ensure the best returns; work exclusively with each investor (preventing a bidding war); and continuously deliver a strong pipeline. We begin with pre-screened, refined and constantly updated data, then balance financial details and physical characteristics with expert analysis to eliminate prospects that fall outside target criteria. The investor starts with 10 great prospects, not 100 bad ones.


The service comes at a fraction of the cost of building such capabilities in-house, and can be customized in every way—size, specialty, geography, etc.—to serve as a natural extension of the in-house team. There’s collaboration, not competition.


The multifamily sector has proved remarkably resilient through the horrors of the ongoing pandemic. What’s strong is likely to get stronger—and it offers a perfect environment in which to take advantage of modern technologies and capabilities to do things differently, and better.

 

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