Case Study: Reputation Pays
Anybody who has worked with me knows how much I care about Alliance’s brand. I’m proud of building a business that earns consistent returns for our investors, treats everybody with respect, and moves more nimbly than our competitors. It’s fun to strive for perfection, but my focus on brand isn’t just about pursuing excellence. The right reputation adds straight to our bottom line.
One of our successful deals — a specialty medical facility in Texas — helps illustrate the value of reputation. The developer was doing a $5m renovation of the interior and had gutted the building, right down to the studs. Then conditions changed. Interest rates were rising, and the developer needed cash to help fund another project. He needed to sell, and didn’t have a lot of time.
Motivated sellers are a blessing for investors like me. They will trade a lower sale price in exchange for speed and reliability. Real estate deals are a time-consuming process. Normally, due diligence is a slow and methodical process. But a seller in a hurry doesn’t have time to devote to a lot of potential buyers. He needs to avoid window shoppers who will back out late in the game and unsophisticated investors who can’t close their financing in a timely fashion. The distressed seller wants one committed buyer, who has the sophistication, access to capital, and decisiveness to move quickly.
That’s Alliance in a nutshell. We specialize, so we’ve already done much of our homework before we even see a hot deal prospect. Whatever else we need to find out, our team can get up to speed quickly. And, our long track record of success means we have investors and bankers who trust us.
Our reputation for good judgement gives us easier access to capital. Our access to capital means we can close a deal quickly. And when somebody needs to sell quickly, we’re waiting, ready to deliver the goods and close the deal.
Brokers know we can get the job done quickly. When they steered the Texas developer to us, I could tell it was a champagne popping kind of deal. Buying at a great price virtually guarantees market-beating returns. It would never have been possible without our reputation.
