How Real Estate Sponsors Create Value Through Operational Excellence | Podcast

Location Cubed

Join Alex Hill and Evan Staggs as they discuss how real estate sponsors can create value for LPs beyond performance metrics like acquisitions and returns. They explore the importance of clean, consistent financial reporting, timely K-1 delivery and proactive tax planning as key differentiators in building trust, strengthening LP relationships and positioning sponsors for future deals.

Subscribe and listen to future episodes of Weaver: Beyond the Numbers, Location Cubed, on Apple Podcasts or Spotify.

©2026

Detailed Description of Location Cubed: How Real Estate Sponsors Create Value Through Operational Excellence

 
00:00:00
Alex: I’m Alex Hill, audit partner at Weaver, and this is Location Cubed, Weaver’s Beyond the Numbers real estate podcast.

Today, I’m talking to Evan Staggs about what ways can sponsors and real estate developers can create value for LPs beyond great acquisitions, strong cash flows, smart exits, that kind of thing.

00:00:23
Alex: So, Evan, from your perspective, what are some of the other ways sponsors can differentiate themselves to LPs?

00:00:30
Evan: Yeah, that’s right, Alex. Thanks for having me.

00:00:32
Evan: You know, ultimately, when you’re talking about an investment, you’re right. Things like cap rates, cash flows, rates of return — those are paramount in terms of evaluating an investment.

00:00:43
Evan: But when it comes to managing an LP relationship as a sponsor, clean and consistent financial reporting, timely K-1s, and proactive planning when it comes to tax strategy, or tax efficiency, are incredibly important when it comes to managing those relationships.

00:01:02
Evan: Ultimately, one deal for an acquisition is great, and hitting that rate of return, or exceeding it, is awesome.

But if you want to get that next deal, especially being able to manage that relationship when it comes to financial reporting and tax planning, ultimately can make or break it.

00:01:21
Alex: Yeah. It’s a big one. I mean, I feel like LPs can be forgiving when it’s a general kind of volatile market.

But if you as the sponsor are missing deadlines or scrambling or just look like you don’t have your stuff together, you damage a lot of goodwill.

00:01:37
Evan: Yeah, 100%.

00:01:38
Evan: And ultimately, you look to consider these LPs as principals, as individuals, you know, with real estate investments and the way that they’re typically structured. Understanding and being able to say to your LPs, “This is when you’re going to get your K-1. This is the strategy we’ve put behind it. This is how proactive we’ve been.”

00:02:00
Evan: Or I mean, they sound like basic blocking and tackling, but they’re differentiators in this kind of market ultimately.

LPs want to know that you’ve taken advantage of deductions, of elections, and that those are all reflected in the K-1 that you’ve told them you’ll get by early February, for instance.

00:02:20
Evan: And so, in a case like that, those kinds of things are sort of soft skills, if you will.

But not only will they make the current LP relationship operate much more smoothly, they’ll, again, allow you to broach that topic with the LP in the future when there’s a new acquisition, when there’s a new disposition.

00:02:41
Evan: And having that kind of network that’s built upon strong financial reporting, consistent financial reporting and strong processes internally ultimately will produce a productive outcome.

00:02:53
Alex: That’s a great way to frame it. Evan, appreciate the insight, and thanks for sharing your perspectives.

00:02:59
Evan: Awesome. Thanks, Alex.

Featured

Timing Your Cost Segregation Study for 2025 | PodcastTune in now

 

Podcast

Timing Your Cost Segregation Study for 2025 | Podcast