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233. The State of The Multifamily Market & How We Got Here with JC Castillo & James Eng

Tax Smart Real Estate Investors Podcast

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How LPs Can Better Vet Future Sponsors

I like how you guys broke down the long term view and how important that is just to sometimes get base hits and not swing for the fences. So in closing, would you be able to take a few seconds to give us an idea of how LPs could better vet future sponsors going forward? I want to touch on one point that JC had previous in terms of what experienced sponsors were doing. The cap rate compression across classes. And so A deals are at 5%, B deals maybe 575,. But then C deals, they might go to 675, 7%. It's got to be hard for sponsors to commit to that being just fiscally responsible there or getting addicted to the fees

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