The FORT Podcast: Chris Powers – Why decisions are made to sell real estate?
On this solo episode, Chris breaks down what would cause someone to sell an investment property or cash-flowing asset. He also discusses why different entities will decide to sell, such as funds or merchant developers. He stresses the importance of building a track record of selling, and how that played into the success of Fort Capital. He also discusses the process by which Fort Capital approaches a sale and experiences they’ve had. Enjoy!
(01:57) – Who and what are we selling?
(02:30) – What are some reasons to sell?
(04:10) – Misalignment & Partnerships
(04:59) – You’re Doing Larger Deals
(05:43) – Satisfying Estate Issues
(06:09) – The Market is High and The Offer is Great
(06:38) – There are Better Opportunities for Capital
(07:18) – Taking Profits
(08:55) – Changing Market Conditions
(10:31) – Cross-Collateralized Deals
(11:10) – Taking risk Off The Table
(11:26) – Real Estate Depreciation
(12:05) – Investor’s Preferred Time Horizon
(13:13) – Tax Reasons
(13:38) – Why funds, REITs, and Merchant Developers Will Sell
(15:01) – You’ve Aggregated Enough Assets
(16:12) – What does selling do for an investment company?
(18:15) – Building a Track Record
(23:04) – Ownership Types and Incentive Structures
(30:08) – Fort Capital’s Experience in Selling Portfolios
(32:29) – The Process by Which Fort Capital Sells
The FORT is produced by Johnny Peterson & Straight Up Podcasts.