By Chris Cordes, real estate portfolio manager, PPR Capital Management When seeking a sponsor for multifamily partnerships, it’s critical to consider one that offers worthy qualities for the joint venture, since this individual or company will be in charge of managing the property on behalf of the partnership. Worthiness is measured by the ability to be resourceful and versatile. When determining the worthiness of a sponsor, there’s an old expression that can be helpful to keep in mind: “You’re only worth as much as the pocketknife that you carry.” The pocketknife is a simple tool that offers incredible assistance when utilized for daily tasks. While this device is particularly useful when completing common tasks, it’s important to select the right type of pocketknife. Often, a knife with a single blade will not always get the job done, and you’ll need something else to finish a task. The iconic Swiss Army Knife solves that issue. The historic and versatile multi-use device is known for including varying types of pivoting tools that offer a secured level of preparedness in a compact way. During the sponsor screening process, the main equity partner should examine the qualities a sponsor presents and determine whether the …
