Posted a while back about our hiring funnel. -> Website says we aren’t hiring but for the right person we might consider it. 500 word essay to explain why we should talk to you.
Over 100 essays so far, most are trashed immediately as they just aren’t interesting. 3 have been very good and got to round two.
Round two is a model with one question. “What’s wrong with this model”. Most don’t respond.
One incredible response so far, he got the model, found issues and came back with not just analysis on the model but also the building/market that the model is about.
Next step is a phone call. He nailed it.
Next is a meeting in Austin. He absolutely crushed that one today and we made an offer to join the team.
This process seems to cut through the crap and self eliminates the wrong people so that we can focus on the few conversations with promise.
I will update in a few months after Ben starts with Harbor Capital, but I can say I’ve hired hundreds of people over the years and am very hopeful this time.
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Thinking about investing in real estate and don’t know what kind of property to buy? Take a look at industrial assets in growing cities. Here is a 🧵about one deal I own that is like an ATM machine. 👇
Many industrial properties are trading for far below replacement cost and yet offer functionally the same value to tenants as a new building would which means you can earn great returns if you buy smart.
Industrial vacancies are shrinking in most markets with population growth and yet most investors ignore the space which means opportunities still exist for great buys.
Serious question here for real estate GPs and LPs: Should long term hold GPs stop modeling out 10+ years and just focus instead on the quality of the asset and the Un-levered yield on cost?
I had a conversation with @moseskagan several months back in Austin and he told me that they model the first year only and it’s stuck with me. Honestly I thought he was crazy at first, but I think he might be on to something.
We all know that the likelihood that your model is correct is near zero. And the further out it goes the less accurate it gets.
In 2001 I decided it was time to go big and try and raise $600k for my first raw-land development deal.
I was 20 and knew literally nothing.
I wrote a 🧵 about how that circus went down. 👇
The deal was a 7.2-acre farmland tract that I had in contract for $530,000. My plan was to subdivide the land into 33 single family residential lots and to sell it to one of the big builders in the area.
Through a friend I found out about Rick, an "eccentric and super wealthy" investor who agreed to give me an hour to pitch my deal"
It’s crazy that you could be about to make the worst choice of your life and nothing would stop you. Not even a little popup to ask “are you sure you want to do that?”
I love this little corner of Twitter we call RETwit. My hope for this community is that we can all be a resource for each other. A safe place to bounce ideas and make each other better for it.
At our best we could be Clippy the paper clip for other investors. “It looks like you are trying to design a six unit apartment, have you met @bobbyfijan?”
(10 simple rules that will make you successful at anything)
I’ve paid more stupid tax than I care to add up, yet I’ve tried my best to not repeat the same mistakes twice.
Here are 10 things that I wish I learned to years ago.
Never leap from little information to big conclusions. If you don’t know enough, keep searching.
Doubt is not a pleasant condition, but certainty is absurd. No one knows everything about anything. There are always variables that you cannot predict. Learn to be less certain about the things that you think you know, and you will become better about planning for the unlikely.