As you know, Chad and I invest alongside you on every deal, not taking any fees upfront but rather a promote that is paid only when all investors make money. Recently, we decided to take a retrospective look at our first deal and compare our initial projections and aligned-interests thesis to its realization. As you know, our modeling is conservative, sometimes overly so. As you can see from this, we routinely beat our initial projections. Sometimes by a factor of 2-3x. We continue to believe in this because of the risk involved and a belief that being careful usually never hurts.
The annualized S&P 500 return over the period analyzed (May 2016 through October 2019) was 11.3% without dividends being reinvested and 13.5% with them being reinvested. The annualized return of IYR (US Real Estate ETF) over the same time period was 9.53%.
We crushed our comparative benchmarks. Our first deal projected IRR was 15%. Our actual IRR at exit was 34%
As you can read in the narrative, we continued to find unique and creative ways to squeeze value out of assets through a combination of creative problem solving, creating hostage value, and just general ingenuity. Lastly, we are not resting on our laurels. We continue to endeavor to bring the same results on our current deals and find new deals. The numbers in this report are from Q3 2022. If you are interested in receiving our annual report, please let us know. The first one will be coming out soon.
In addition, we are currently raising for a new deal. If you are interested in that as well, please let us know!