Big funds have lots of money and
less deal flow than they would like (these days).
Not exact matches
As well, now finished with its LTE rollout, Verizon is also spending
less on capital expenditures, so it's generating more free cash
flow to fund a
deal.
However, Sanchez Energy's plan was to use higher oil prices to boost production and cash
flow so it could support the mountain of debt it took on to complete the
deal, with its aim to get leverage to
less than 3.0 next year.
«There are pockets of areas that are getting stronger and weaker — certainly there is
less demand in the oil patch — but overall I have not seen any market change in the amount of
deal flow over the course of 2014 or 2015,» reports Michael W. Scolaro, managing director and group head of Asset Based Lending at BMO Harris Bank.
Unreasonable Capital's ability to support investments and generate insights is unmatched because we (i) spend
less time on
deal flow generation and more on investment support, and (ii) are a global investment fund, sharing best practices across geographies and industries.
If a project experiences cash
flow shortfalls or otherwise gets stuck in a down market, sponsors / owners will have
less control and flexibility in the
deal.
The market here is also out of control so cash -
flow deals are... not really a thing in any major centres (I don't like to buy rentals in markets with
less than 100k people — still cash
flow deals in those areas, from what I've seen).
if you want the
deal to not only give you the cash on cash return you desire and a good cash
flow per door, factor that into your price but understand that means you may be up against someone who will accept
less than $ 100 / door and thus be able to pay more.
I realize my IRR had dropped to
less than 30 % and so in 2014 till today I started buying 65 % IRR BRR
deals locally in Tacoma where I get an instant equity of 30 % and then 1.25 % to 1.5 % rule cash
flow deals.