It’s Not Easy to recommend the property to out trusted client

Here is a list of the steps we take before making any recommendation

What is “Vetting” an Investment and What Does it Mean for You?

Every deal on the RNR Infra platform goes through a formal review process with our affiliated builders / partners. Our Leads and builders RM has formalised processes to evaluate deals listed on the platform. 

Review of the Real Estate Company:

Review of the Real Estate Company:

RNR Infra Leads conducts diligence of the real estate company and it’s principals to assess the manager’s skill and experience to successfully complete the business plan

Detailed Background Check:

RNR Infra Leads conducts background and criminal checks along with reference checks for the principals of the real estate company

Track Record and Communications

While the volume of experience is important, a track record of reasonable success in executing similar business plans, including bringing a deal full cycle, is also a consideration. Leads also looks for real estate companies that engage in appropriate budgeting and financial reporting.

Review of the Property

Four critical elements when reviewing the property

BOOTS ON THE GROUND

  • Our processes include visiting properties to evaluate whether the property is accurately reflected in the proposed plan.

PROPERTY REPORTS & INSURANCE

  • Our team reviews applicable and available reports, including environmental, zoning reports, property condition reports, planned insurance coverage, and, when available, an appraisal.

REVIEW OF THE COMPARABLE PROPERTIES

  • Analyzing comparable properties including historical sales values and leasing comps is a component of due diligence

LOCATION

  • Our team digs into the location, looking for an understanding of key economic drivers and why tenants would want to rent at the property.

Review of the Business Plan

The real estate company owns the business plan and underlying assumptions. Our team reviews the proposed plan and underwriting to dive into:

Key Business Assumptions: Our team draws on years of experience to review the key assumptions in the plan for reasonableness. For example, the team reviews comparables to other properties that have been rented in the market to sense check the business plan

Proof of Debt Commitment: The team reviews the potential debt terms, interest rate assumptions and reserves as part of an evaluation of the sources and uses of capital

Management Fees and Compensation: The team reviews the fees and compensation levels, including whether they are transparently disclosed.
Planned Exit Strategy: The team also reviews the projected hold period and exit strategy in light of possible market conditions

Information

The real estate company owns the business plan and underlying assumptions. Our team reviews the proposed plan and underwriting to dive into:

Key Business Assumptions: Our team draws on years of experience to review the key assumptions in the plan for reasonableness. For example, the team reviews comparables to other properties that have been rented in the market to sense check the business plan

Proof of Debt Commitment: The team reviews the potential debt terms, interest rate assumptions and reserves as part of an evaluation of the sources and uses of capital

Management Fees and Compensation: The team reviews the fees and compensation levels, including whether they are transparently disclosed.
Planned Exit Strategy: The team also reviews the projected hold period and exit strategy in light of possible market conditions

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