The Alternative Investor

In today’s episode we thought it would be fun if we did something a little bit different! We want to share with you some of our favorite tools that we use in our jobs everyday — from software and technology, to resources and newsletters.A lot of these tools can be used in many different industries and we hope we can help streamline some of what you do everyday by sharing a few of our most-used tools and giving you the inside deets on how much they cost per month, our favorite attributes and features about each one, and how we utilize them within our business.Key Takeaways:[:11] About today’s episode: our favorite everyday tools.[:33] A quick refresher on what it is that we do day-to-day.[1:33] Brad kicks it off with the most important software he uses in his day job.[3:00] Brad’s favorite software, tools, tips, and tricks that uses in real estate.[18:54] My favorite software and tools that I use in private equity. Mentioned in this Episode:Rent ManagerJuniper SquareDropboxGoogle EarthMicrosoft ExcelSquarespaceUpworkFiverrMailchimpBondMagicGrasshopperBurnerUnbounceSalesforceReply.ioLinkedIn Sales NavigatorClearbitG SuiteGoogle SheetsCrunchbaseAxios NewsletterStratechery NewsletterFor More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today’s show is going to be all about asset prices and what we’ve been seeing lately. Don’t lose hope — it’s not all bad! Things may seem expensive right now (and are expensive!) but there are some things you can do to to ensure you’re investing in worthwhile assets! In this episode, Brad and I go over what we’re seeing right now in terms of pricing in both the real estate and private equity side of things, how sometimes a deal may look really expensive when it is actually an incredible deal, and some of the “tricks” to figuring out what makes a worthwhile asset vs. one that is not worth your time.Key Takeaways:[1:01] About today’s show![1:17] What Brad is seeing right now in terms of pricing in real estate.[4:46] Remember when Facebook bought Instagram? Seems like they overpaid, until you look back on the deal.[6:03] Why the Instagram/Facebook deal worked out and how to do the same for yourself.[7:13] Taking a quick look at the private equity side.[7:42] The “tricks” to figuring out the worthwhile assets vs. the not worthwhile.For More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.comWhat Exactly is Adjusted EBITDA? - EP. 21EBITDAFred WilsonEddie Lampert’s Plan to Save Sears Hosted on Acast. See acast.com/privacy for more information.

In today’s episode we’re talking all about qualified opportunity zones — these things are amazing. They’re portions of the country that are economically disadvantaged, and if you invest in those areas you get incredibly favorable tax treatment.First, we take you through the history of qualified opportunity zones (which has a pretty interesting history in itself!) — then we get to the really exciting part: the incredible tax breaks to be had by investing in these zones and how to go about it. And then, to wrap it all up with a bow, we take you through a real world example to illustrate how it’s done.Key Takeaways:[:12] All about today’s episode![:55] The history of qualified opportunity zones and how they came about.[3:31] What an opportunity fund is.[5:42] What a qualified opportunity zone is.[7:35] The exciting stuff: the tax benefits from investing in a qualified opportunity zone via an opportunity fund.[11:51] A quick recap on all the amazing tax benefits.[12:24] Brad takes us through a real world example.[16:48] Our final warnings on qualified opportunity zones: make sure it is still a good deal — a bad investment with a good tax treatment is still a bad investment.[18:57] One last thing you need to remember: you do have to do this through a qualified opportunity fund.[19:56] Does this all make sense in the private equity world?[20:41] A final note about qualified opportunity zones on the real estate side.For More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

In this episode, Brad takes us through some of the different types of real estate asset classes and gives us the pros and the cons of each! He also gives us some ideas on what we should think about when investing in each of the types, why some people choose to invest in them (or not), and the risks vs. the rewards. From multi-family real estate investing and affordable housing to office buildings, industrial, retail, and hotels — Brad gives us the insider scoop and breaks down what we all need to know about investing in these different types of real estate.Key Takeaways:[:30] If you want to get in touch with us or have any suggestions for the show, you can always email us at [email protected] and [email protected].[1:13] About today’s topic: the different types of real estate asset classes.[1:57] Brad explains the basics of multi-family real estate investing.[4:54] Do student housing and affordable housing fall under multi-family?[6:21] Pros and cons of affordable housing.[8:36] The difference types of niches in office buildings.[9:31] The pros and cons with office buildings.[13:29] Brad explains the industrial asset class.[16:09] Risk vs. reward for warehouses compared to office and multi-family.[17:10] Brad breaks down the different types of retail facilities.[19:22] The pros and cons of retail real estate.[21:46] Is retail similar to office as in their risks vs. reward?[22:05] About investing in hotels and the risks involved.[24:34] Brad reviews some niche asset classes: manufacturing housing, data centers, cell towers, casinos, single family rentals, and medical.Mentioned in this Episode:[email protected]@stablespartners.comFor More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today we’re talking about how to source off-market deals!It’s easy enough to go on LoopNet or MLS Deal Finder but anybody can get those deals, so we want to share some solid trade secrets with you all today and help you find those sweet, sweet off-market deals.In a prior episode, we’ve gone into the differences between off-market and on-market deals, but today we want you to join us to get right into the nitty-gritty of how you can actually find these off-market deals.Key Takeaways:[:12] Our topic today: how to source off-market deals.[:26] What we mean by how to source an off-market deal.[1:06] What is an off-market deal?[2:39] Brad talks about how to find off-market deals in a real estate firm.[14:10] How to find off-market deals on the private equity side.[21:10] Concluding this week’s episode and where to find more resources!Mentioned in this Episode:LoopNetMLS Deal FinderFirst American TitleLinkedInBroker Deals VS. Off-Market Deals - EP. 11For More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Just in case you were wondering if you have what it takes to be an alternative investor, today we thought we’d share with you all of the things — the behaviours, the attitudes, and the skills — that go into sourcing and doing diligence on closing a deal!There’s a lot of aspects that go into shaping an excellent alternative investor — from qualitative to quantitative skills. You need to be an expert generalist, while also having strong project management skills, lots of optimism, and most importantly: be able to make STUFF happen. In this episode we cover the three major buckets of the skills you need to have, as well as the three specific parts of what goes into making a deal, such as sourcing, diligence, and the closing process. Tune in!Key Takeaways:[:11] About our topic today: [:55] The first of the three big buckets that fill the skills of what an alternative investor needs to be: an ‘expert generalist.’[2:46] The second: being a ‘professional cat herder.’[4:38] Our third bucket: make ‘stuff’ happen.[5:54] The three specific parts of what goes into doing a deal: sourcing (find the deal), diligence (analysis and doing the work), and the closing process (getting the deal over the finish line).[6:24] Firstly: the skills, behaviours, and attitudes that go into sourcing a deal.[8:38] Secondly: the diligence side and its related skills, behaviours, and attitudes.[13:06] Thirdly: the skills involved in getting the deal closed!For More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today we’re going to talk about Adjusted EBITDA — or in Brad’s world, Adjusted NOI; Net Operating Income. So what is it? First off, it depends who the player is. Are they legit? It’s a super critical number and important to get right — so tune in for today’s short and sweet episode all about Adjusted EBITDA!Key Takeaways:[:13] About our topic today: Adjusted EBITDA![:22] What is Adjusted EBITDA?[2:42] A simple example of Adjusted EBITDA.[3:32] Non-valid Adjustments in the real estate world to Net Operating Income (NOI).[5:23] Valid Adjustments Brad has seen in the real estate world.[9:35] A couple examples of valid Adjustments we see in the private equity world.[13:00] Wrapping up today’s episode!For More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today on The Alternative Investor we have our first guest on the show: Brent Beshore! Brent is the CEO and founder of Adventur.es — a private equity firm in Columbia, Missouri. Adventur.es has a unique investment approach: they seek boring businesses. They explain this perfectly themselves: “Boring businesses endure because they consistently solve a meaningful problem and were patiently built over decades,” “Truth be told, our responsibility is not just to seek and sustain boring businesses, but to be boring ourselves. Boring is reliable, faithful, and predictable. Boring is sustainable. We are committed to doing what we say we would, when we said we’d do it.”This episode, Brent, Brad, and I discuss the workings of Brent’s firm, how they go about securing deals, their due diligence process, what deals they look for, and how he deals with a variety of situations within the firm. He also gives his views on growth, what industries he won’t touch, and what he thinks about current asset pricing.Adventur.es has some pretty contrary views and approaches to traditional private equity firms so it was an extremely interesting interview that we recommend you all tune in to this week!Key Takeaways:[:10] Our guest, Brent Beshore, introduces himself and tells us a little about his background and how he got to where he is today.[2:28] How Brent started up his private equity firm, Adventur.es, and what they’re all about.[8:09] About the makeup of Aventur.es’ portfolio: what kind of companies they currently have, what they like, and what they’re looking for.[11:05] How did Adventur.es get comfortable with some of the more cyclical deals (especially with the pool companies).[14:14] Does Brent believe that volatility does not equate to risk?[17:11] How do they have the liberty with their fund where they can hold a deal indefinitely?[18:58] Are they reinvesting dividends each year?[19:55] Do they have discretion?[20:16] Does Brent find that the sellers they buy deals from generally involve competitive bidding?[24:40] How Brent keeps a sense of urgency in their operation (without the pressure of the 3-5 year time frame a traditional private equity firm generally has with businesses).[27:37] In most cases, is Brent dealing with the CEO who’s selling the business with a management team stepping up or is he hiring other operators to come in?[29:21] When the owner is not staying around, and a new management team is stepping up how does Brent keep those people incentivized?[31:05] Brent’s process of finding deals.[34:30] If a broker sent Brent a deal he would normally want to buy, but it’s part of a bigger process with multiple firms bidding on it, does he step out?[37:52] Brent gives us a back-of-the-envelope approach to how he thinks about what is an attractive business for Adventur.es.[42:31] How Brent thinks about due diligence and the major things that kill a deal.[46:53] In their due diligence process, how much time is spent within the company internally and how much is spent thinking about the market and external factors?[50:31] About Brent’s meeting with Warren Buffett.[52:04] What kind of multiples is Brent seeing in business right now? And how does he think about what’s the best multiple to pick?[55:11] How much is too much customer concentration?[57:05] How much does Brent care about growth? [58:24] Are there any industries Brent wouldn’t touch?[59:48] How does Brent think about current asset pricing?[1:03:22] Where to find more of Brent’s content and Adventur.es online.Mentioned in this Episode:Adventur.esBrent Beshore’s LinkedInThe Oracle of OmahaFor More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today’s an exciting show — we’re talking about business quality. Who doesn’t want to buy a quality business?Business quality is a little bit of an amorphous term, but today we focus on thoroughly explaining what it is and why you should care about it as investor. We also put together a framework of categories for high quality businesses, such as: the organic grower, the mergers and acquisition machine, and the ATM machine (yes, we know that the M in ATM is machine.) And of course, since we talk about the businesses that are the most high quality, we also had to talk about what we call “the valley of death” — the category of businesses that we would never touch.At the end of the day, any investment you make in a business, you want to get that investment back in the form of cold, hard cash. But to do that, you have to think not just about the price, but about the quality of the business.Key Takeaways:[:27] About today’s topic: business quality.[:41] Why, as an investor, should we care about business quality?[1:59] Our first category of a high quality business: an organic grower.[4:52] An example of an organic grower.[6:48] The second category: a mergers and acquisition machine (“an inorganic grower.”)[8:57] Some examples of a M&A machine.[11:01] Our third category: an ATM machine.[12:38] Examples of an ATM machine.[14:18] The category of businesses that are (usually) not high quality: “the valley of death”.[17:49] Wrapping up today’s show with our key point: “quality, quality, quality!”For More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today we’re talking about debt! It’s an investor’s best friend … or enemy. We answer all the questions you may have about debt, such as: what is debt? When do you get debt? How much debt do you put on an investment? We also address the various restrictions that come with debt, why you should get debt (and some of the great — and not so great — reasons that can come with it), how much debt to put on your deals, and some examples of how debt can change the return on a deal.Debt can reduce the amount of cash you have to come up with to buy a deal — but it comes with some promises you have to make to the bank (and other people) that might end up coming after you one day. But, done thoughtfully, it has its place in alternative investments — so tune in to hear more of our take!Key Takeaways:[:11] About today’s topic: debt![:35] What is debt?[1:42] Restrictions that come with debt.[3:10] Some great reasons to get debt.[4:58] How Brad thinks about how much debt to put on his deals.[9:42] Brad gives an example of how debt can change the return on a deal.[13:10] An example in real estate, with the same numbers.[15:22] Summarizing our key points about debt.Mentioned in this Episode:Paul Getty QuoteFor More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

In today’s episode, we address a recent listener’s question on how to identify or pick out an investment theme. We think of investment themes as something that can help you narrow down (what seems like) an infinite list of opportunities into something more manageable and actionable.Not only does a theme help narrow down your own list of investment opportunities — it helps differentiate you in the minds of brokers and bankers when they see deals. A theme can be an asset class, a business model, a trend, or macro trend that’s occurring in the economy.Today we go through just some of those ways you can pick a theme to help you stand out in a sea of investors.Key Takeaways:[:11] Today we answer a listener question from someone who asks, “How do I identify an investment theme?”[:52] How we think of an investment theme and why they can be so beneficial.[5:29] Why you won’t be taken seriously if you don’t narrow your criteria.[7:31] How to pick a theme that resonates with you.[11:33] When you think about a theme, think about the macro trends in the world.[13:00] How to do multiple deals within real estate while having an overarching theme to your investments.[18:19] Summarizing our key points.Mentioned in this Episode:For More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Risk is an often misunderstood and poorly communicated concept. Even professional investors can be afraid of risk. However, risk is going to be a part of every single investment decision that is ever made and there’s no such thing as a risk-free investment. So hopefully, in this episode, we can provide some tools and a framework to help you think about risk and overcome any hesitance you may have. Brad and I discuss risk from the academics’ perspective, real estate, and private equity side; as well as risk deal killers, and general risks that factor into any investment.Key Takeaways:[:10] About our topic of discussion today.[1:51] How the academics think about and talk about risk.[9:43] How we think about risk (in real estate and private equity.)[12:26] How Brad looks at to evaluate real estate risk.[14:42] More factors that go into risk analysis in real estate.[17:28] Are there any risk deal killers? What risks would kill the deal?[20:51] How I think about risk in private equity.Mentioned in this Episode:The University of ChicagoModern Portfolio Theory (by Harry Markowitz)University of California San DiegoStandard Deviation VolatilityDue DiligenceBase CaseDownside RiskMarket RiskFor More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today we’re going to talk about how to figure out how much to pay for an asset. When you’re buying an asset, price is the most important variable you’ll be looking at — probably not the only variable — but definitely the most important!Arguably, you should be spending 90% of your time answering the question: what is this asset worth? So today Brad and I cover — from real estate to private equity — how to know how much to pay and which factors you should consider.Listen in to learn how to appropriately price assets!Key Takeaways:[:13] Our topic of discussion today: how much to pay for an asset.[1:52] Brad walks us through how much to pay for an asset in the real estate world.[4:58] A real estate example for figuring out how much to pay for an office property.[9:03] How the exit price factors in to how much you’ll pay.[11:17] How much to pay for an asset in the private equity world.[15:04] Summarizing our key takeaways.Mentioned in this Episode:IRRCap rateUnlevered vs leveredWarren BuffettFor More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today we’re talking about accredited investors. To become an accredited investor you have to meet the SCC’s income and net worth requirements (such as needing to have $200k of income in the last 2 years if you’re single, $300k if you’re married, or $1 million in net worth not including your home.)So why would you want to become an accredited investor? Or how? And if you became an accredited investor, what opportunities open up to you? How do you verify that you’re accredited? Brad and I answer all these questions this episode — as well as giving you an update on the latest changes the government has made in regards to accredited investors!Key Takeaways:[:12] About our topic today: accredited investors.[:26] Brad’s experience dealing with accredited investors.[4:02] What is an accredited investor?[8:15] Why does it matter that you’re an accredited investor? What opens up to you?[10:42] How to become an accredited investor.[12:20] All the ways to verify that you’re accredited.[14:57] The latest update on what the government thinks about accredited investors.Mentioned in this Episode:BlackstoneThe Carlyle GroupSCCJor Law at Verify Investor (Linkedin)Verify InvestorFinancial Industry Regulatory Authority (FINRA)For More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today’s episode is all about preferred equity — so we’re going to try and keep it light and fun. Firstly, we talk about what equity is and how preferred equity differs from it — then, we get into common reasons for using preferred equity in a real estate or private equity deal. We also give some examples of the differences between it and common equity and explain why, more and more, we’re seeing preferred equity in deals.Preferred equity may not be sexy — but it can be sexy when the payments are coming to you.Key Takeaways:[:13] About our topic today: preferred equity.[:55] What is equity?[1:40] The two types of capital: debt and equity.[2:29] An example of common equity in a real estate project.[3:49] What is preferred equity?[4:30] An example of preferred equity in a real estate project.[6:42] Why do we typically see preferred equity in deals?[8:00] Another reason for preferred equity.[9:16] Expect to see preferred equity in your future deals and do more research on the topic!Mentioned in this Episode:Capital StackPreferred EquityFor More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

It’s finally here — the day we talk about blockchain. Blockchain is a new technology — providing a global marketplace, allowing you to transact with a click of a button. Blockchain is a highly evolving area and not a day goes by without some new, interesting developments.So don’t worry if you don’t understand what the blockchain is — we’re here to give you a basic understanding so you can go forth and use the technology!Key Takeaways:[:13] About our topic for today: blockchain![2:27] What is the blockchain?[5:20] An example of the practicality of blockchain in real estate.[7:27] What is a security token? [11:30] What is a utility token?[12:16] Definition of a token.[13:18] How tokens relate to alternative investment.[14:48] What are the advantages of using the blockchain and tokens to represent ownership in an asset? Why is the world going in this direction?[16:10] The difficulties of liquidating assets and how the blockchain helps.[18:37] A huge advantage of the blockchain: increased transparency.[19:25] All the great advantages to blockchain.[21:35] Recapping all of our info on the blockchain.Mentioned in this Episode:BlockchainICOFor More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Broker deals and off-market deals are night and day. Everybody thinks that an off-market deal is the holy grail and that you’ll score a way better price. At least that’s what most people think — but it’s not necessarily true. So today, we’re going to go through the key differences between broker deals and off-market deals and break everything down so that you can make an informed decision as a buyer or investor.Key Takeaways:[:14] The difference between broker deals and off-market deals.[1:02] What is a broker deal?[1:44] What is an off-market deal?[2:24] The difference between the processes on a broker deal vs. an off-market deal.[5:05] The difference between a broker and banker.[6:00] How many sellers go to brokers? And why?[7:40] The process of narrowing down the buyers.[9:18] Are buyer interviews held?[9:47] The process for an off-market deal.[10:50] Likelihood of closing between an off-market deal and broker deal.[12:34] The quality of the deals on an off-market deal vs. a broker deal.[13:40] How long it takes to close an off-market deal vs. a broker deal.[15:42] The valuable role of a broker.[20:48] The range of prices in an off-market deal vs. a broker deal.[25:44] Wrapping up our thoughts on off-market deals and broker deals.Mentioned in this Episode:Freakonomics PodcastFor More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

You find a real estate property you like, you sign it, you wrap up the deal under LOI, sign the purchase agreement, and then you get into diligence — which is what we’re going to be talking about on today’s show.Diligence is that 30-60 day period after you sign the purchase agreement and before you get into the official closing documents. In this episode, we highlight everything that happens during that period, such as; the title, zoning analysis, building permits, surveying the property, environmental analysis, the appraisal, deeper market research, property condition report, financial due diligence, and the lease review.This is real estate due diligence 101!Key Takeaways:[:13] About today’s episode.[:48] How long it takes to go through the entire diligence process.[1:34] Issues that can arise, starting with the title and title insurance.[5:50] What is zoning analysis? Why is it important?[6:50] Where are you completing the title, title insurance, zoning analysis, and building permits?[9:18] About the survey portion of the property and its purpose.[12:00] What information does the surveyor give you on the property?[13:53] What is involved in the environmental analysis?[19:22] All about the appraisal; how much it is, who requires it, and how it can kill deals.[22:40] Some of the deeper market research that is done to make sure that you’re getting a reasonable value for the property.[23:45] Can this deeper market research also lead to killing deals?[24:34] What happens during the property condition report.[28:04] The process of financial due diligence.[32:25] All about the lease review.For More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today, we take a deeper dive into looking at private equity. Private equity is Grayson’s world — so we switch the script and I ask him all of the questions I have about private equity.We discuss how private equity can help grow businesses, get debt to help your returns, the high risk/high return nature of private equity, precise strategies, what to look for when you’re investing, how to know how much to invest, and more! Key Takeaways:[:13] About today’s episode.[:44] An overview about private equity, how Grayson defines it, and what sort of businesses he goes after.[2:29] How do you grow the company with private equity?[4:04] Are there any precise strategies that focus on particular markets in private equity firms?[4:48] Who are the big private equity firms?[5:30] Do smaller private equity firms do one-off deals in addition to funds (similarly to real estate)?[6:28] Why does private equity have higher return (and in turn, a higher risk)?[7:59] Can you get debt in private equity?[9:12] High leverage, big buyout vs. the smaller deals.[10:40] Multiple expansion and why it’s so great.[12:41] What to look for when you’re investing in private equity.[17:44] How do you know how much to invest?[19:09] How do you pay a multiple on revenue?[23:40] In an auction process on a deal, what would the variability between lowest bid and top bid be?[24:50] A real world example of a private equity deal.[29:06] What about exits? How do you make the most money in these deals?Mentioned in this Episode:KKRBlackstoneApolloThe Carlyle GroupFortressEBITDA For More on The Alternative Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today we’re going to talk about what goes on behind the glass curtain — what it actually looks like inside of a real estate private equity firm.We go over the different types of teams within the firm, the importance of each of their roles, as well as their hierarchy; the two types of private equity funds; how these firms make money through the different types of fees they charge; and the general atmosphere and physical environment of the firms.Tune in as we pull back the curtain on real estate private equity firms!Key Takeaways:[:13] About our topic for today: behind-the-scenes of the goings-on of a real estate private equity firm.[1:09] The general atmosphere and physical environment of a real estate private equity firm.[3:30] The teams that work inside the office and their roles. Firstly, the acquisition team and the hierarchy of the roles (the managing directors, directors, vice presidents, associates, and analysts.)[11:59] The asset managing team’s role.[12:58] The other teams in the office and the roles within them: the accounting team and the investor relations team.[16:00] The difference between the two types of private equity funds.[20:00] How these firms make money (through the acquisition fee, asset management fee, the disposition fee, and more).[24:27] The biggest, most important fee of them all: ‘the promote.’For More on The Alternate Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

We’re talking real estate today. Brad walks us through the ins and outs of finding a good deal in real estate — covering the basics and then diving deep further into the episode.Everybody should have some real estate exposure outside of their current residency. You don’t want to think of your home as a real estate investment so you should get out there and look at some real estate deals! This episode we discuss the three main reasons why real estate is a worthwhile asset class to be looking at, what cap rate is and why it’s an important determining factor when looking to invest, how to measure the risk of return, and when you should ultimately decide to “pull the trigger” in a deal.Key Takeaways:[:27] Why we’re talking real estate today and the three reasons why it’s a worthwhile asset class.[7:17] As a sponsor, how do you know you’ve found a good real estate deal? What do you look for?[8:25] Clarifying what ‘cap rate’ is and what it indicates. [10:50] What other metrics does a sponsor look at when trying to find a good deal?[14:13] The different real estate strategies and the opportunities you’ll see as a passive investor.[15:42] How do you know how much you want to pay for something? And the right way to consider cap rate in a deal.[19:03] How to decide when to ‘pull the trigger’?[21:05] The most important but toughest aspect about looking at an investment: Figuring out what your annualized return on a deal will be and how certain you are that you’ll get that.[22:20] Considering cap rate and measuring the risk of the return.[23:40] Ultimately, it comes down what your annualized return is going to be and how risky it is.[24:52] How to think about growth in real estate.For More on The Alternate Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today we’re talking about LOIs — Letters of Intent. LOIs are kind of like you and the seller are dating — you’re testing the waters and have the intent of moving forward with a relationship, but not the obligation — you’re still shopping. When you sign an LOI you don’t have inclusivity but it can help you lay out the basic business terms of the deal and get it moving forward.This episode we discuss everything we know — and think you should know — about letters of intent! From the major points of the deal you should include in the LOI, the bullet points we make on our LOIs, and some of our real world examples using LOIs.Key Takeaways:[:28] What is an LOI? Information on the non-binding, legal document.[2:27] The key part to an LOI for us, as buyers. And what’s the next step after a LOI? [4:14] About the inclusivity of a LOI (from the both the real estate and private equity side), and when exclusivity is reached.[7:19] So why should you care about a LOI as an investor?[10:26] The major points of the deal you can include in the LOI.[11:23] Key terms in the LOI; the price you’re going to pay, how and when you’re going to pay it, how much is going to be seller financing, debt, or equity.[12:02] About the recent deal we got under LOI.[13:55] The bullet points we make on our LOIs.[14:38] Exclusivity in a LOI? The binding element we could put in an LOI.[15:55] One of our first deals that we put under LOI, signed up the purchase contract — and the seller still backed out, proving that contracts are a step towards closing the deal — but they’re not set in stone.[18:27] Summarizing LOIs: When you want to see them and when you’ll use them.Mentioned in this Episode:The Alternative Investors EP.05: Don’t Get Bernie Madoff’ed: Avoid Ponzi Schemes and FraudFor More on The Alternate Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

Today we’re talking about how not to lose your hard-earned money through fraud. One of the advantages of alternative investments are that they are less heavily regulated by the federal government — but that also means you have to do more work when you’re investing in alternative assets to make sure you’re investing in a legitimate opportunity.This episode, we discuss a few things you can do to to minimize your chances of getting involved in a fraudulent scenario. We share our general tips and tricks to making well-informed decisions, what you should be looking for when initially investigating a sponsor on an alternative asset, and the actionable steps to take pre-close and post-close on a deal.We hope you get access to many great deals — but don’t be a sucker. Before you put your money into a deal listen to this week’s episode. Key Takeaways:[1:15] A few things you can do to minimize the chances that you’ll be getting into a fraudulent scenario, and the two ways of accessing alternative investments.[1:54] Some things you should be looking for when you’re investigating a sponsor on an alternative asset.[4:58] Pre-Close: What do on the deal before it closes (and before you wire that money over!) to help avoid fraud.[11:03] Post-Close: Steps you should take after you’ve closed the deal to make sure you’re not being subjected to fraud.[15:34] General tips and tricks to be smart while making these kinds of deals.Mentioned in this Episode:Bernie MadoffFor More on The Alternate Investor, Check Out:TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.

The guys go deep on what a private equity investment in a operating business looks like. Grayson tells the story of how he purchased Birdwell Beach Britches, a beloved surfer brand that was underperforming relative to its potential. This episode covers the how the deal was identified and closed, how the investors analyzed this private equity investment and how they formalized their ownership. For more episodes go to thealternativeinvestorshow.com. Sign up for our investor insider list, where you’ll gain access to our latest findings within the world of alternative investments.  Hosted on Acast. See acast.com/privacy for more information.

In this episode, Grayson and Brad go in detail on how to put your money to work in alternative investments. They cover how to source investments from your network or online via a crowdfunding platform. They also compare the trade-offs between investing in a fund (private equity, real estate, venture capital), which is a pool of investments vs. investing directly into one off deals.  Hosted on Acast. See acast.com/privacy for more information.

On today's episode we review all the benefits of alternative investments and why retail investors should take the time to learn, evaluate and invest in alternative assets. Hosted on Acast. See acast.com/privacy for more information.

Brad and Grayson discuss alternative investments and cover the various alternative asset class options investors should strongly consdier adding to their stock and bond portfolios. Hosted on Acast. See acast.com/privacy for more information.