Find & Figure It

Resources:

• Deal Calc/Due Diligence Checklist

How Top Operators Source, Underwrite, and Structure Commercial Deals in a Tight Market

Context

This session breaks down Nick Burton’s end-to-end acquisition system for commercial real estate, focused on how experienced operators consistently find deals, evaluate them quickly, and structure them using creative financing in today’s high-rate environment.

The core problem it solves: most investors don’t fail from lack of deals—they fail from unclear buy boxes, weak sourcing systems, and inability to structure transactions creatively when traditional financing doesn’t pencil.

How It Works (Step-by-Step Framework)

1. Define a Precise Buy Box (“Find It”)

• Clear criteria eliminates wasted deal flow and increases inbound opportunities
• Burton’s example framework:
  • Asset types: multifamily, NNN, mixed-use
  • Markets: NC, SC, TN, GA, OH (select metros)
  • Size: $5M–$20M range
  • Quality: A/B class assets in A/B areas
  • Strategy shift: stabilized + light value-add (not heavy rehab plays)
• Key principle: specificity drives deal flow quality, not volume

2. Control Deal Flow Through Communication

• Deal flow is driven by visibility, not secrecy
• When focus shifts from single-family → commercial, pipeline flips proportionally (95% shift observed)
• Primary sourcing channels:
  • Broker relationships
  • Email lists + database follow-up
  • Facebook groups + networking communities
  • Contractors + vendor networks
  • Direct outreach campaigns

3. Systematize Broker Outreach

• Scrape platforms (Crexi, LoopNet, CoStar) for broker data
• Build large-scale contact databases (tens of thousands of brokers)
• Consistent cadence:
  • Minimum quarterly follow-ups
  • Structured outreach cycles
• Goal: become “top of mind” before deals hit the market

4. Evaluate Deals Using a Repeatable Framework (“Figure It”)

Every deal must answer 3 questions:

• Is there assumable debt below market rates?
• Can the seller offer creative financing (even 5–10%)?
• What are real trailing financials (not broker projections)?

Key underwriting rules:

• Vacancy assumption: 5–6%
• Expense ratio baseline: 45–50%
• Stabilized assets target closer to ~40%

5. Understand Cap Rate Spread (Core Profit Lever)

• Property cap rate = in-place return
• Market cap rate = stabilized market value
• Value creation comes from:
  • Closing cap rate gap
  • Increasing NOI through rents + expense optimization

6. Structure Deals Through Multiple Levers

• Assumable debt (often biggest value driver)
• Seller financing (cheapest capital after personal funds)
• Equity structuring (creative investor terms)
• Renovation-based rent increases ($7.5K/unit example used)

7. Live Deal Logic (How Decisions Are Made)

• Start with conventional underwriting → often negative cash flow
• Shift to structure-based underwriting:
  • Debt repositioning
  • Seller financing layers
  • Assumable low-rate loans
• Outcome: deals move from “doesn’t work” → “strong yield” through structure, not price cuts

8. Make Offers Consistently

• Minimum: 1 offer per day or several per week
• Reps create deal flow, not theory
• Every offer must include rationale (not blind bidding)

9. Due Diligence Discipline

Non-negotiable items:

• Rent rolls
• Leases
• T12 financials
• Full property inspections (every unit)

Hard rule:

• If even 1 unit in a large asset cannot be accessed → treat as red flag

Key Leverage Points / Insights

• Clarity of buy box directly determines deal flow quality
• Relationships > platforms (word-of-mouth dominates sourcing)
• Most deals become viable through structure, not price
• Creative financing is the primary edge in high-rate environments
• Underwriting is a repeatable system, not a case-by-case guess

Common mistakes:

• Vague acquisition criteria (“good deals” syndrome)
• Inconsistent broker follow-up
• Underwriting without real vacancy/expense assumptions
• Waiting for deals instead of forcing flow through outreach

Execution (What To Do)

• Build a written buy box and distribute it to your network immediately
• Set weekly outreach cadence:
  • Brokers: minimum quarterly touchpoints
  • Networks: weekly engagement (email + calls + groups)
• Underwrite 1 deal daily using fixed assumptions
• Submit multiple offers weekly (even on imperfect deals)
• Scrape and build broker databases monthly
• Review 100% of financials + inspect every unit in acquisitions

Metrics That Matter

Leading Indicators

• Offers submitted per week
• Broker contacts added per month
• Underwrites completed per day
• Network outreach frequency

Lagging Indicators

• Deal flow volume
• Acceptance rate on offers
• Contract-to-close conversion
• Cash-on-cash return post-structure