Competence and ethics are the two most important things that Omar looks for in syndicators and operators. He stresses in this episode that when you put your money in a deal, you are investing in people. So, when you’re analyzing a deal, don’t focus too much on the quantitative aspect – whether it’s 15% or 15.5% IRR. Focus on the people you will be working with. Screen them religiously. Look at their trench experience.
You don’t need to be an expert in every part of the deal before you can start to invest. All you have to do is look for the right people – operators and syndicators that are really good at what they do. As Omar puts it, you may have a sub-optimal deal in an average market, but with a fantastic operator, you’ll be fine. Or, you may have a phenomenal market and great asset but if you’re working with an incompetent team, you will really have a bad time. Investing in people is the key!