Investment Philosophy
Non Performing Loans: Trade Construction, Adverse Selection & Marshmallows
I’ve previously discussed purchasing a basket of nonperforming second mortgages a few years ago. Below is a discussion of the reasoning behind the trade. My hope is this will begin to help you better understand how I broadly think about trade construction as...
Competing with the Big Boys
Institutional investors have become big players in the hard money business. They bring with them a huge appetite to buy loans. For example, Alphaflow purchases newly originated loans at up to 85% of the as is value, up to 90% loan to cost and up to 75% of the after...
Making Good Loans as LTVs Creep Up
In funding real estate loans with my partners over the last year, it’s been interesting to talk with hard money lenders around the country. They have different models and very different costs of capital. One broad trend that I’ve observed is that most hard money...
Defaulted Second Mortgages
When I had a realtor drive by the house, prior to purchase, it looked like the owner was renovating it. In 2018 I started finding fewer investments that met my criteria. I had pivoted from flipping houses to building houses and it wasn’t the right fit for...
Investing vs. Other Games: How We Keep Score Matters
In Bill Brewster’s (on Twitter @BillBrewsterSCG) interview with Adam Robinson (on Twitter @IAmAdamRobinson), Robinson distinguishes between two types of games. These are Games that you should play to win andGames that you should play not to lose Initially, I thought...
A Burnt Out Mixed Use Building, Another CRE Cigar Butt
Mac was the first GC that we brought to our 2nd Street project. He started years earlier in the trades as a framer and had gone on to build hundreds of homes in his career as a GC. When we arrived, Mac pried the plywood covering off the door frame and peaked into...
Pursue Inefficiently Priced Assets With Me
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