For years, I struggled with whether I should keep writing this blog. On the plus side, the blog has introduced me to hundreds of people who became brokerage clients, property management clients and/or investors in our deals. On the negative side, I have educated a whole legion of people who compete with me for deals,
I have a very clear vision for my career. I have known where I want to go (I want Adaptive to be a huge company) and I know what I have to do to make that happen (a series of very good deals for the people who trust me with their money, so that they will
Years ago, when we were still working on the Better Dwellings portfolio, before we started Adaptive, I remember having a conversation which I now realize contributed to my bias towards holding real estate permanently. Can’t remember who it was, but the person told me about checks he receives each quarter. The source of the funds?
Was at a terrible conference early this week, when I heard something amazing. It came from a guy who runs a fund that invests in other managers’ private equity funds… in other words, a “fund-of-funds”. Someone in the audience, presumably an aspiring fund manager, asked Mr. Fund-of-Funds how much of a co-invest he wants to
The traditional real estate private equity model is broken. Here is how it works now: Sponsor finds deal Sponsor raises equity from investors, then uses as much debt as possible (to enhance the returns to investors) Sponsor adds value to deal (renovating, building ground-up, whatever) Sponsor sells deal as quickly as possible, pays off the