Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

17% Returns? Why Misaligned Investor Expectations Can Wreck Your Deal!

17 Nov 2024 · 1 min

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In this segment, the presenter emphasizes the critical need to align an investor’s return expectations with the projected performance of a deal. Using a concrete example, they illustrate a scenario where an investor seeks a 17% annualized return while the deal is expected to deliver only 13–14%. The mismatch indicates the investor may not be a suitable fit for that particular opportunity. However, the presenter advises against discarding the relationship entirely, noting that the investor could be a good match for future deals that meet their return criteria. The overall message stresses thorough assessment of expectations and maintaining relationships for potential later alignment.

Chapters

The reason it's really important to understand their investment goals is, okay, let's say this person that you're talking to is looking for, you know, 17% annualized return. After you've done your projections and your assumptions and you've really looked at this deal, you believe that your investors would get somewhere around 13 to 14%. You and him are not on the same page. So he may not be a good fit for this deal based on the returns he's seeking, but you don't like just dash him away and forget all about him because guess what? He could meet the investment criteria or his wants can meet your investment for another deal that you have next.