Jonathan Cronin (speaker) argues that the single most important focus for real estate investors is finding high-quality deals. He emphasizes sourcing off-market opportunities through consistent networking and outreach (cold calling, postcards, etc.), increasing the quantity of leads to uncover deeply discounted deals (speaker cites aiming for being "all in at 70% of the value"), and that strong deals make raising capital easier — allowing sponsors to offer investors attractive preferred returns (speaker cites ~8–10%). He encourages investors to prioritize deal-sourcing over worrying about funding, and to use networks or masterminds to fill deals once a compelling opportunity is found.
Questions this video answers
8–10% preferred return.
About 70% of the value (speaker: "be all in at 70% of the value").
Hey, what's up, guys? Today I'm talking about the number one focus you need to have in real estate investing to be successful. Last week I shared the number one mistake that most investors make. And this is kind of a sequel to that. But this one thing, it should consume your, your thinking, your focus. Okay? My partner and I have several businesses, but we have a majority of our portfolio in real estate. We have a mastermind that helps people buy apartments. And I've literally spoken with hundreds of real estate investors. And this one thing I'm telling you comes back all the time. Okay. And I hear many investors talk about, you know, asking me how do I get the funds for deals. And there's a major place for that. We talk about that a lot. There's many strategies to utilize in finding the funds, filling up your deals. But I promise you, if you focus on this one thing, you're going to over subscribe your deals. Okay. You're going to be able to see the funds come in quickly. Okay. This is something again that I think if you put aside everything else and focus on this, you're going to be extremely valuable in real estate. And, and that is simply finding the deal. Okay. In 2023, I want to talk to you about what does it look like to truly find a deal that makes everything else irrelevant, all the other issues irrelevant? Right. You're looking for deals that you can give investors an incredible return. Okay. And yeah, you've got to have the experience. Yeah. You've got to have the backing, you've got to get the debt. And no one's going to give you, no bank's going to loan you things based on just you having a great idea or having a great deal. You've got to have experience. But I'm telling you, if you focus on finding good deals, you're going to be able to see the other pieces come together much faster. I'm telling you, I personally would, would invest with. If it's a good enough deal, I'll find you a loan sponsor. I'll find you somebody to do it. So what does a good deal look like? Well, first off, to find good deals, you can't just be looking on LoopNet, right. You can't just be looking on Crexi and all of these other on market platforms. Okay. You've got to be looking off market, you've got to be networking, you've got to consist of consistently be networking with people around you. You've got to consistently be deploying off market strategies. Okay. Whether that's cold Calling or whether that's postcards or whatever that looks like. We have a whole list of things that we go through in our program of how to find off market deals. But the key here is quantity. Okay. It's not just going to be the one that brokers are sending you on emails right now. It's going to be the ones that you put in the work and find. You've got to increase your quantity of leads so that you can look for the ones that you can be all in at 70% of the value. Right. You can give limited partners and investors 8 to 10% or more preferred return on. Okay. If it's a mediocre deal, you may have a hard time finding funders. Right? I mean in today's market, with losing money in the banks and the stock market going down, these deals are going to get investors in. Investors want to be a part of these deals. But the more you can give to the investors, the faster you're going to be able to fill up that deal. I hope that makes sense. There's much more to it. You're probably thinking it's still scary, it's still intimidating to have to go and raise money. And how could I possibly do that? I've never done it before. Well, all you need to focus on is finding a really good deal. In the end, if you find a really good deal, you can probably wholesale the thing. You don't have to take it down. But if you find a good enough deal, reach out to me, reach out to somebody. I will make sure that the deal gets gets underway. Right. If it's a good enough deal, then it'll work out. So I hope that helps. I hope that inspires you. Give all your focus to finding a good deal and then you'll find the network. You know, whether it's, you know, we have a mastermind that could help out or whether you find some other network, you know, just focus on finding the deal and then up level your network and you'll find the loan sponsors, you'll find the people that need to be involved in the deal to make it happen. All right. I hope that helps. I hope your2023 goes exactly as you plan. Have a wonderful day.
