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Jan. 2, 2023

Spotting the Big Red Flags in a Deal with Kyle Jones

Spotting the Big Red Flags in a Deal with Kyle Jones

In today’s podcast episode we interview Kyle Jones, Co-Founder and Key Principal of TruePoint Capital, LLC. TruePoint Capital offers closed-end, private equity funds in the private real estate market. Today’s topics are focused on how Kyle came across with real estate investing, bringing value for LP investors, and how to spot the big red flags in a deal which will help LPs find relevant deals in the markets.

How Kyle Came Across with Real Estate Investing

Kyle became interested in real estate investing because of his dad’s influence and by watching the show “Flip this House” on TV.  Those things were the start of Kyle’s real estate journey and he firmly believes that with real estate, he will be able to build wealth in the fastest way possible. Also with real estate he was able to create another stream of income for his family.

Bringing Value for Limited Partner Investors

As a Principal, Kyle does things out of his comfort zones to bring real value to his limited partner investors. He attributed these to things like, surrounding himself with a very strong team of professionals heavily focused on development. And he also added that working with different operators will allow diversification of deals due to the non exclusivity type of offering.

Spotting The Big Red Flags in a Deal

Kyle discussed in the podcast the big red flags in a deal that limited partners should be aware of so that they can avoid it. 

  • 200$ rent bumps in the first year of a deal is actually an impossible forecast. 
  • Be aware of cap rate manipulation especially when forecasts are stable or lower over the course of the next 5-6 years.
  • Operator does not include in their disclosure the cost of insurance, and therefore you should ask them.

Who is Kyle Jones?

Kyle Jones is a co-founder and Key Principal of TruePoint Capital, LLC. Kyle is responsible for the company’s strategic planning, investment decisions, asset management, and overseeing all aspects of the company’s financial activities, operations, and investor relations. Kyle obtained a Bachelor of Science degree from Texas State University – San Marcos, where he also played Division 1 Baseball.