Frequently Asked Questions
For Family Offices & HNWI
- Who is Clarity Equity Group?
- Clarity Equity Group is a commercial real estate firm, with $65 million Assets Under Management in the Kansas City MSA. We work in the $3-$25MM space and can go higher for compelling opportunities.
Our Managing Director is an Air Force pilot with four combat tours, and has been in the real estate business for more than a dozen years. - What price point do you work in and why?
- We work in the middle market ($3 to $25 million) space and can go higher for the right opportunity. Clarity likes this size of property because we can be the smart money in the room and we have numerous business connections in the space.
Smaller properties are not compelling to us for a number of reasons and with larger properties ($50MM+) there is simply too much competition from larger institutions that bid up the basis to a level that is not attractive to us. - Where do you source your deal flow?
- We have built powerful relationships of close knit like minded and capable professionals over the course of our careers.
Clarity also has deal desk that works full time to source opportunities from owners, operators, brokers, financial institutions and other non-traditional deal sourcing avenues within our business network. - What does the partnership structure look like?
- The short answer is: each opportunity is different and it depends.
The structure is ultimately based on the goals of, you, the investor. We are a shop that is very flexible and we are not here to dictate terms.
Clarity will even allow a co-General Partner position to make the investor more comfortable with the investment. - How do I participate as an investor in the commercial real estate opportunities?
- Either direct investment or in a Special Purpose Vehicle (SPV). No funds, blind pools or funds of funds.
- Who papers the deal?
- We can paper the deal or your office can. As stated earlier we are flexible and accommodating to our investors.
- I'm not in Kansas City, can we still work together?
- Absolutely! We communicate daily with HNWI, family offices, and sponsors across the country. We'd be happy to schedule a time to travel to you for a sit-down, face-to-face meeting!
- I don't have time to meet right now; it's just bad timing. Is there anything we can do?
- We understand that life is busy. Now may not be the right time—but what about next quarter? You want you to have a relationship in place that you can trust will be fair and professional. And you can never know enough good people. So let's connect and go from there.
For Banks
- Why should I sell REO directly instead of listing with a real estate broker?
- There are numerous reasons to sell direct over listing. You can benefit from a shortlist with a certainty of closing; dealing directly with decision-makers versus a middle man; and avoiding flaky buyers. Plus, you won’t have to pay the carry cost of the property, the maintenance, or the management that is included with REO. We are experienced property owners and you will immediately know you are dealing with professionals. There are also no commissions to pay.
- What MSAs and asset types do you work in?
- Clarity Equity Group buys in commercial REO and non-accrual notes, as well as bulk REO ($3M+) in demographically growing MSAs.
- What’s the cost to me?
- There is no cost or commission to your bank. If in our discussions we learn that the property or tapes aren’t for us, we have other strong industry contacts that we can refer to you.
- What price point is Clarity looking for, and how long will it take to close?
- For bulk REO, commercial REO, and non-accrual, we target $3 million+, but can take on smaller commercial properties as well. Closing speed is document and title dependent, but 30 to 60 days is our target timeframe.
- What kind of haircut am I looking at taking on these sales?
- While every property and situation is different, if the deal works for us, we will pay par on UPB.
For Sponsors
- If you are providing the deal flow aren’t you cherry-picking the best for yourself and leaving me with the leftovers?
- No. We have the discipline to know that we aren’t buyers of all property types in all MSAs. We have a strict diet of asset types and locations ourselves. But this certainly doesn’t preclude us from sending deal flow to other smart professionals.
- What MSAs and asset types do you work in?
- We source deal flow nationwide from the four main food groups: office, industrial, retail, and multifamily.
- When sending me deal flow, what’s the cost to me? And what's in it for you?
- There is no upfront cost or risk to you or your firm. You are committed to nothing. Clarity will collect a small fee for putting the deal together at close of escrow. Our remuneration will be explained and agreed upon clearly before any paperwork is signed.
- How are your advisory services different than all of these "gurus" on Facebook?
- Simply put, we are far more sophisticated and experienced than they are. They are only interested in teaching the basics to get the first deal. That's grade-school level stuff—and they overcharge for it. Clarity's advisory services are only for sponsors that have a track record of success and are looking to move up into bigger and better deals that require significantly more capital and have more complexity. We "get you dressed" for the party and then work on raising capital for you, starting at $1,000,000 in equity or $2,000,000 in debt. The gurus will only sell you a canned course and leave you to your devices.
- What kind of experience do I need to raise capital from Clarity?
- First, you must be a person of good moral character. Then we look at your track record and see where you have had success in, and maybe some areas that could use some help. From there, we take a look at the whole picture to see if this is someone that we would be proud to support and introduce to our network.
- I have only done "country club" capital raises. What's next for me?
- If you have only done country club raises and have stretched your friends' and family's investment capital as far as it can go, you may be a great fit for us. We have been exactly where you are now, and making the jump to raising outside investors' capital is both daunting and nuanced. Clarity will prepare your pitch with Wall Street-quality presentation materials and introduce you to our circle of investors ready and willing to invest in quality commercial real estate deals with quality sponsors.
For Owners
- Who is Clarity Management Group?
- Clarity Management Group is a small, high powered apartment management firm in Kansas City. The breadth and depth of experience, ability and contacts that Clarity brings to the table is second to none.
Our Managing Director is an Air Force pilot with four combat tours, and has been in the real estate business for more than a dozen years. - What types of property does Clarity manage?
- The tenants are our customers. Finding and attracting the best tenants is paramount to a property's success.
As part of the collaborative property plan that Clarity and ownership puts together we will identify the desired tenant based on a number of different factors. From there Clarity markets directly to them and once they move into your property we do everything that we can to keep them.
The exact details of how this is all done is proprietary and we invite you to a conversation by reaching out to us. - How do you attract and keep the best tenants?
- The tenants are our customers. Finding and attracting the best tenants is paramount to a property's success.
As part of the collaborative property plan that Clarity and ownership puts together we will identify the desired tenant based on a number of different factors. From there Clarity markets directly to them and once they move into your property we do everything that we can to keep them.
The exact details of how this is all done is proprietary and we invite you to a conversation by reaching out to us. - I'm not in Kansas City, can we still work together?
- With our know-how, experience and A-team players Clarity is highly effective at taking properties from underperforming to best-in-class in as little as six months.
- How does Clarity turn around or assist in value add properties?
- With our know-how, experience and A-team players Clarity is highly effective at taking properties from underperforming to best-in-class in as little as six months.
- What issues can Clarity fix?
- If your property is experiencing any of the following issues you need to call us today:
•Low occupancy
•High delinquency
•Poor attitude from management
•Unreliable financial reporting
•No clear path forward
•Outrageous fees from management
•Capital improvements not being performed to specifications
•Cost overruns
•Poor or no budgeting
•No or little marketing
•Don't know who the desired tenant is or unable to attract them
•B and C team players working on your property
You simply aren't satisfied with the way things are going