Business and Real Estate

Background

In 2017, I co-founded a real estate private equity group. We began from scratch, no assets or much in the way of contacts. But ambition was high along with a certain naïveté.

We built or invented much of what was needed from the ground up. Many would refer to this as, “the hard way.” It was, and in many ways still is. Several years later, I owe the success we’ve enjoyed at least in part to stubborn persistence. The world isn’t as complicated as the established would make it seem. Those who wish to make a go of it should do so, and without hesitation. Any practice is an iterative process which means growth requires action as well as planning.

That said, a bit more guidance, especially in the early days, would have gone a long way in avoiding many of the pitfalls that now seem obvious. Here, I share my notes and experiences in the hope that perhaps you’ll avoid my mistakes and build upon my progress.

A Closed World

So much in the investment space is closed; proprietary. Whether an institution’s intellectual property (excluding relationships which are often decisive), is of any use is another debate. I’m of the opinion that the protection of IP in the investment space is for purposes of avoiding scrutiny, rather than for preventing property theft in imitation. Keeping things closed allows for managers to maintain the allusion they add value. And some do add value, but not all and perhaps fewer than we'd suspect

At many points in my career, I have waited for this ‘aha moment’ where the secrets of the industry would be revealed and sophistication shine through. Having now been party to increasingly larger deals, I’m often taken aback at the lack of sophistication of institutions operating at scale. I’ve encountered simple and frequently flawed financial models from international businesses that employ thousands.

My point? Don’t remain on the sidelines in fear of being an imposter. The majority are. I’d argue that if you do feel a dose of imposter syndrome, this is a competitive advantage. Whereas many are content to operate with flawed models where their perceived value is the result of marketing rather than the objective reality, humility will get you closer to truth. And that’s where you’ll achieve staying power, a key ingredient to success in real estate. Though possibly at the expense of rapid ascension, success in real estate exists on a different timeframe.

What’s Offered Here

Having started from nothing, I’ve been exposed to a wide variety of components to the business. Many disparate hats have been worn. From these experiences, I hope to share with you what I’ve learned in many segments of the business including asset management, accounting, property management, leasing, legal, etc.

In Closing

As an eternal skeptic, I encourage you to take what you find with a grain of salt. However, in an industry that suffers from group think, I believe I have a fresh perspective as a simple function of probability given much of what I have to share was learned unconventionally. If you find something that piques your interest, take it and evolve it for your own purposes. I only ask that you maintain openness within anything taken here, share, and pay it forward.

Disclosure

The content provided on this platform is for informational purposes only and should not be construed as investment or legal advice. The information contained is not intended to be a substitute for professional advice and should not be relied upon for specific investment or legal decisions. Readers are encouraged to seek independent professional advice before making any investment or legal decisions. The views and opinions expressed on this platform are those of the author and do not necessarily reflect the official policy or position of any other agency, organization, employer or company.