Deal Abstract

https://www.seedinvest.com/calibercos/series.b

Commercial real estate investment company. Complete lack of financials and refusal to give investors timeline to profitability and estimated rates of return. Analysis requested by a reader (yes, I take requests at mail@muhanzhang.com!) Not a startup investment, but worth analyzing in the greater context of investments.

“Setting return expectations for a business pursuing a growth path and a future public listing is not something we can do at this time. We hope to perform according to similar businesses experiencing substantial year over year growth and, as all management teams do, will seek to outperform our benchmarks.”

https://www.seedinvest.com/calibercos/series.b/updates

Shoutout to E. Z. for the tip!

Decision

Pass, for me as an angel investor.

Its A No From Me Dog GIFs | Tenor

For passive real estate investors: pass as well. More notes below.

Why Investing/Passing

Doesn’t fit my thesis, but analyzing for readers/using the deal as a demonstration of how to blend different business analyses.

UPDATE: Post analysis reasons for passing:

  1. Too much fluff and garbage: way too much effort to find financials, only to see that the company refuses to give a path to and estimated range of return. Show me your profitability and historical pay out, or get out. I’ve watched too many startup pitches to know when a company is distracting retail investors with fancy large numbers while dancing around the central questions of operations and profit.
  2. Undifferentiated: Besides capital scale, I can’t see what this firm has to offer. Looking at the website, it says their strategic and competitive advantages are “Southwest, relationships, long-term vision, and trust.” The first is a thesis (which is actually quite reasonable, from a demographics standpoint,) while the rest all sound like platitudes. Investors should expect and ask for more specific differentiators.
  3. Thesis mismatch: I believe in the power of real estate to build wealth. That said, I believe that the key factor in real estate to build wealth is leverage, in that America will give individual real estate investors a


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