How To Create Unlimited Deal Flow

Creating a system that floods you with high-quality alternative assets is daunting. It demands considerable effort, networking prowess, expertise, and time commitment. Yet, there are specific steps investors can take to significantly enhance their access to attractive investment opportunities in alternative assets.

Networking is paramount. Immerse yourself in relevant industry associations and groups. Make a point of attending conferences, seminars, and webinars centered around alternative investments. Cultivating relationships with industry insiders, asset managers, and fellow investors can open doors to new opportunities. Consider joining or forming an investment club with like-minded individuals.

Another avenue is to engage the services of consultants or advisors who specialize in sourcing and vetting alternative investments. Financial professionals with deep roots and connections in the alternative investment space can also be valuable allies.
The digital world offers several platforms that connect investors with private placement opportunities in alternative assets. Actively participating on these platforms can significantly broaden your access.

Stay within one geographic area. Look beyond your immediate horizon and explore opportunities in different regions, countries, or continents. Global diversification could lead you to untapped lucrative markets and niches. Today, joining investment groups and networks worldwide and engaging with other members virtually is straightforward.

Staying updated with industry trends, emerging niches, and market dynamics is crucial for making informed decisions. Regularly reading industry reports, journals, and publications can keep you abreast of the latest developments.

Consider building a brand or presence in your chosen niche. Position yourself or your firm as an authority in the field. This could involve writing articles, giving talks, or creating relevant content. This enhances your knowledge and makes you more visible to deal sponsors and operators.

Existing investments can also be leveraged to gain access to other opportunities. Once you’ve invested in a few alternative assets, use your position as a limited partner to get introductions to other opportunities. Successful investments often lead to referrals and access to different deals.

Be bold and take the initiative. Research potential investment opportunities or operators and reach out directly. This proactive approach can open doors that might have otherwise remained closed.

Having a robust due diligence process in place signals to operators that you’re a serious investor. This helps in vetting deals and ensures you have legal and financial experts on hand to review Private Placement Memorandums (PPMs) and other critical documents.

If you are serious, you should research all the operators and sponsors in the niche that operates in the market in which you are interested in investing. It would help if you listed potential operators and sponsors you would like to have conversations with and scheduled at least 1-2 calls with operators and sponsors. You will determine what operators and sponsors you want to invest. With this, you will also learn more about the asset class, investment niche, and investing in alternative investments.

If, through your interview process, you find 10-15 people that you pass your due diligence test, stay on their mailing list to see what deals they have. Available in the future and analyze each deal using your deal framework.

You can meet many interesting and great people and learn more about investing than you could have dreamed of without investing one cent or dollar.

We have two things to invest in life: time and capital. Make sure you invest a lot of time before investing your capital.
When you have invested your time and are ready to invest capital, you want to make sure you have your liquid capital available and prepared to go where you can access it, for example, in cashflow life insurance utilizing the Infinite Banking Concept.
Liquidity is key. Ensuring sufficient liquidity gives you the flexibility to capitalize on opportunities as they arise. This investment readiness can offer you an edge, especially in competitive situations.

Remember, investing isn’t just about transactions; it’s also about relationships. Building and maintaining long-term relationships with successful operators and sponsors can lead to repeat opportunities.

While specialization has advantages, occasionally exploring alternative asset classes can open up new avenues and guard against sector-specific downturns.

There’s no guaranteed system for unlimited deal flow. However, investors can significantly enhance their access to high-quality alternative asset opportunities by actively networking, staying educated, and maintaining a proactive approach.

If you are interested in learning how to create a pipeline of unlimited deal flow of alternative investments, you can listen to an interview I did with Jim Phfeifer from Left Field Investors at www.cashflowninja.com/leftfieldinvestors.