Do You Pre-Fund Before Finding a Deal?

[Michael Santeusanio]

Some investors line up funding first; others contract the deal and then secure financing. What’s your preferred approach and why?

[Benjamin Aaker]

Nope, you can try to get a feel for general interest but it usually doesn't work to get commitments before the deal is under contract. If not, what are your investors actually agreeing to? They way they do it is by having a fund, where investors don't get to see the deal prior to the purchase.