How Kumo Evaluates an Acquisition Opportunity

Insights / How Kumo Evaluates an Acquisition Opportunity

The screen

Every property gets the same six questions. We publish them so that sellers and brokers can self-select, and so that we do not talk ourselves into a deal because we like the story.

• Do we understand the place? Central Texas submarkets where we know demand and can operate the property after closing.
• Is there a credible use? A demand story we can verify, not one we hope for.
• Is the improvement bounded? Condition, access, utilities, layout, occupancy, entitlement, or title—a problem with edges.
• Is the risk manageable? Physical, environmental, title, carrying, and execution risk that can be identified and priced.
• Does the downside case work? Explicit return hurdles and an honest look at what happens if we are wrong.
• Does Kumo have an advantage? Operating knowledge, title expertise, relationships, or a specific plan a generic buyer would not have.

What we ask for

Address and property type; survey, plat, or site plan; current use, occupancy, or rent roll; known condition, access, utility, or title issues; and your timing. Redacted documents are fine at the start. We would rather see an honest picture early than a polished package late.

How diligence runs

• Initial fit review against the screen—typically a clear yes, no, or questions within a few business days.
• Site visit by a partner. We do not buy property we have not walked.
• Title and survey review through an independent Texas title company, with the same discipline we would want for a client. (Kumo Title, a related company, is planned and not yet open.)
• Use and readiness: utilities, access, entitlement, environmental, and physical condition as appropriate to the property.
• Economics: acquisition cost, carrying cost, improvement capital, transaction costs, financing if any, and the opportunity cost of founder capital—all before we count a dollar of profit.

How the decision gets made

The partners decide together, and major decisions require unanimous consent. Each approved purchase carries a written downside case and defined exit alternatives: hold, lease, or sell. We do not blend the economics of title, acquisitions, and owned property—each has to stand on its own.

What we will not do

• Use confidential title information as a prospecting feed.
• Assign contracts or market your property to other buyers.
• Tie up a property we are not serious about.
• Pretend a “maybe” is a “yes.”

If this sounds like the kind of buyer you want across the table, submit a property.

General website information is educational and is not legal, tax, investment, or financial advice. Nothing on this page is an offer to buy, sell, or lease property. Terms are confirmed only in a written agreement.