If you trace back the lineage of the great real estate families who hold millions or hundreds of millions in property you’ll always find that one person who started it all.

The person who didn’t have the capital but created some through entrepreneurship.

The person who didn’t have the knowledge but took a chance, made the best decisions they could given the information they had, made a lot of mistakes, but found a way to build wealth through real estate.
They took what they learned and slowly but surely multiplied it over the years. Rolling the family wealth snowball down the hill.

I didn’t come from a real estate family.
The Hubers of the past made money working regular jobs and spent it all or gave a little to their kids when they passed away.

I got lucky. I got mentored by a couple of great people. I started a small biz that put $500k in my pocket by the time I was 24 years old.
And I was able to break into the rich man's game.

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More from @sweatystartup

13 Jan
I sometimes act like an arrogant know-it-all on here.

But my opinions are loosely held. I do that to get better and I love it when you challenge me.

Keep holding me accountable and making me smarter!
A few things I’ve changed my mind on:

I think folks with no money can start in real estate through brokerage or leasing and make a lot of money to start doing deals.

I used to have a major extreme ownership mentality and if you weren’t successful it’s your fault.
I used to think self storage was superior to other asset classes but I know now I’ll have a diversified portfolio when I’m 60.

I think Bitcoin has a place and is a great hedge.

I think HCoL cities are decent places to earn great yield and appreciation can’t be underestimated.
Read 34 tweets
9 Jan
Why do most real estate folks sell their properties?

Because most aren’t real estate investors at all. They run a service business and they get paid in fees when they buy and in promotes when they sell.

True investors get paid by owning great assets for a long time.
Okay okay it’s still real estate investing.

But if you need to buy and sell every 2-4 years to make money and you stop working the money stops coming.

Finding a structure and getting enough capital into the stack that allows you to make enough money while you own it is the key!
If you can find a way to hold real estate for 10+ years that’s when the magic happens.

And it’s when you make money doing nothing but waiting!
Read 10 tweets
8 Jan
Amidst the chaos this year folks forget the following industries all had record sales / performance in 2020:

Exercise / fitness
Car sales
Video games
Domestic appliances
Ghost kitchens
Online meeting platforms
PPE suppliers
Dating apps
Online teaching
Online fitness
Children's Toys
Entertainment streaming
Food delivery
Divorce attorneys
Outdoor experience venues
ATVs UTVs Dirt Bikes
Photography equipment
Hiking supplies
Running shoes
Yoga supplies / online platforms
Cooking supplies
Painting supplies
Tools of all kinds
Guns and ammo
Guitars and instruments
Pools and spas
Videography equipemnt
Craft beer
All alcohol
Interior design
Read 9 tweets
8 Jan
If you're new to real estate twitter this is a must-read.

A thread on how most real estate folks structure deals with outside investors.

Most GPs utilize the "preferred equity" structure when they raise money from outside investors. They "syndicate" deals.

Here's the basics:
The person (or team of people) putting the deal together is the "sponsor". Also called general parter. Referred to on twitter as the GP.

They find the property, do all the work, hire the management company and take fees. They often co-sign debt and always secure the financing.
The investor is generally passive, doing no work and putting in cash. This is the "limited partner". Referred to on twitter as the LP.

They don't co-sign debt. They simply read reports and ask the sponsors questions and cash checks every month (if the deal is going well).
Read 30 tweets
7 Jan
I’ve tried 10x or more to give equity and profit sharing plans to employees.

It’s almost always better to just pay them well and focus on giving them the tools to succeed.

If they wanted a variable pay structure they’d go start their own biz.
Ever tried to fire somebody who isn’t working out when they have equity?

Profit sharing and alignment of goals reads great in the textbooks but it’s absolutely terrible in action for MOST biz owners.

Need more big decision makers with executive talent? Sure. Do it.
99 times out of 100 you don’t need another chief.

You need someone competent at following a system you build.
Read 5 tweets
7 Jan
Devoted about 3 seconds of brainpower to current events today.

I can’t control it so therefore I have elected not to let it stress me out.

I’ll read about it tomorrow and decide if I should adjust my current plan of action. The likely answer, as it almost always is, will be no.
17 minutes and I've lost 50+ followers. Very surprised by the reaction below as well.

I'll do some thinking on this stance and potentially re-consider here.
To be clear I'm not worried about how many followers I have. But when this many people feel differently than I do its a learning opportunity IMO.
Read 4 tweets

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