Happy Father’s Day! Spending the day at the pool with my kids.
Growing up in the Midwest, summer meant water hoses, Super Soakers, and water balloon fights. Simple times that feel like a lifetime ago.
Kraft is launching Airport-friendly ranch packets after World Cup fans became so obsessed with the dressing that the TSA had to issue a warning
The limited-edition travel kit includes enough ranch packets to replace an entire bottle
What’s more important to you…
The return on investment (#1) or the return of investment (#2)?
Lemme give ya GPs a hint
It’s #2
Why’s that important?
Because ya’ll are typically chasing 5-9% caps in RE while bringing 100% of the capital stack to closing
Sure you might have some upside
It’s rarely big upside
What if you only had to come up with only 50-80% of the capital stack to do the same kind of deal?
You can
It’s called lending
Lending can get messy though
And foreclosure is a real cost in time & expense
So why don’t you just buy & give your “borrower” an option to buy back (CRE only)
Once the work is done
Now let’s look at that same deal again
You buy (under the guise of lending) a property that you like at a 50% discount to FMV
That’s a deal you could never buy if making offers to brokers or sellers
Hard money rates are 10-18% currently
Didn’t you just double your ROI and cut your risk in half?
Wouldn’t it be far easier to give your investors 8-12% on their money?
If the borrower didn’t come through didn’t you just purchase the property cheap without having to foreclose or gasp do any work?
Y’all wanna raise a fund, write quarterly newsletters, do podcasts and have your LPs give their expert professional opinion when they’ve never bought commercial real estate before 😂
Not to mention that you’re competing with all of the other buyers trying to do the exact same thing as you
Newsflash you are not as smart as @DallasAptGP
He knew about the deal you’re looking at before you were born
They have a name for your strategy
It’s the definition of insanity!
And don’t forget the workload
Value adding property = big work
Lending against property = a little paperwork
What’s outlined here is far superior to the average CRE purchase
This way will produce results for #1 & #2 so long as you can underwrite well
Many syndicates will work the tail off just to get #1
Good syndicators will get #1 & #2, but it’s difficult to find them
If you’re playing the same game everyone else is you’ve gotta be better than them
If you play my game you can be a dumb hillbilly
Good luck out there, I’m rootin’ for you
@PaulmattJr Ghl
I helped a client send 40k sms in 2 days to promote an event.
We created 10 accounts to run the same sms to different contacts all at the same time.
(Before a2p regulation)
remember you can take assignment fees in the form of options
example: you get a house for $150,000 and are going to sell it for $175,000. You take $150,000 + a 10yr option at say $230,000
I recently started painting. Not because I'm good at it, but because I love the idea of creating time capsules.
Each painting captures a moment in time. Our creativity, emotion, and energy preserved on a canvas that may outlive us all.
Assume the movie had flopped and the director lost his entire $750,000 investment. How many crew members would have voluntarily returned their fees to help offset his loss?
This is the fundamental asymmetry in risk and reward. When someone puts up their own capital and shoulders the real financial risk especially in a high-failure industry like entertainment they alone bear the downside.
Yet the moment the project succeeds, suddenly everyone who was paid upfront wants a bigger piece of the pie. The same people who would not have shared in the loss now feel entitled to share disproportionately in the upside.
If you accept payment for your work regardless of outcome, you’ve already been compensated for your risk (or lack thereof). Why should the person who risked everything not be allowed to reap the rewards when their gamble pays off?