We encourage every prospective LP to run this comparison across any operator they are considering, including us. The questions that matter most are rarely the ones operators volunteer.
1. How many deals have you done, and what happened to investor capital?
The honest answer includes deals that underperformed, not just the wins. An operator who has only shown you home runs either has not done enough deals or is not being candid.
Cornell's answer: Cornell Communities operates ~$25M AUM across 10 properties in 8 states. We are transparent with prospective investors about our full portfolio history.
2. What is your underwriting methodology, and what assumptions do you use?
Watch for operators who project 10-15% annual rent growth, aggressive cap rate compression, or assume a fully stabilized park from day one. These assumptions inflate projected returns.
Cornell's answer: We underwrite to current rents, model in realistic rates for vacancy, budget for CapEx reserves, and stress-test at higher cap rates on exit. We do not project returns we are not confident we can defend.
3. How are you compensated, and when?
Fee structures vary widely. Some operators front-load fees (acquisition fees, loan origination fees) in ways that misalign incentives. The GP makes money at closing regardless of whether the deal performs.
Cornell's answer: Our fee structure is outlined clearly in every offering document. We are happy to walk through it line by line before you invest.
4. Who is actually running the operations?
Some syndicators are capital raisers who outsource all management. Others are operators who run their own properties. The difference matters significantly for execution quality.
Cornell's answer: Cornell Communities manages its own properties through our internal operations team. Loren Smith leads portfolio operations. Jaxon Graves handles property-level operations. Leo Young is directly involved in acquisitions and strategic decisions across every asset.
5. What markets are you in, and why?