varostreamThe Alternative Investor is a show about investing money outside of the stock market (private equity, real estate, venture capital, etc.) where the returns are typically higher but the investment decisions are less straightforward. Join Brad Johnson from Evergreen Capital as he discusses investing in alternative assets to help you make better decisions with your investment portfolio. Hosted on Acast. See acast.com/privacy for more information.
Episodes
The Biggest Bet Ever Made: Do You Own Too Much Tech?
Should You Diversify Away From Tech? The Massive AI Capex Bet and Key Red Flags Book a Call https://zpr.io/W6JaycaP8EeT Evergreen Capital info@evergreencap.com The script addresses investors heavily concentrated in technology stocks and offers a framework for deciding whether to reduce exposure as big tech makes an unprecedented, speculative AI bet requiring trillions in capital spending. It argues AI can be world-changing yet still disappoint shareholders if returns on invested capital don’t justify massive buildouts, and highlights red flags: circular, interconnected revenue and investment relationships reminiscent of the telecom unwind; incentives around depreciation schedules that may make recurring AI infrastructure costs look like long-lived assets and boost earnings; and rising use of cheaper open-source models that could commoditize “intelligence,” shifting value to customers. Using railroads, fiber, and airlines as parallels, it warns transformational tech can still be a poor investment, and that AI stocks can underperform even if AI succeeds if results take longer than valuations assume. It concludes with diversification and tax-aware rebalancing considerations, especially near retirement. 00:00 Tech Heavy Portfolio 00:31 AI Capex Mega Bet 02:26 Red Flag One Spaghetti Deals 03:47 Red Flag Two Depreciation Games 05:28 Red Flag Three Model Commoditization 07:19 History Warns Infrastructure 09:34 Math Behind Expectations 11:19 Diversify And Rebalance 11:53 Taxes And Next Steps Hosted on Acast. See acast.com/privacy for more information.
12:49How the New Fed Chair Could Change Investing
The Fed Put May Be Ending: How a Warsh-Led Regime Change Could Reshape Investing Book a Call https://zpr.io/W6JaycaP8EeT Evergreen Capital info@evergreencap.com The Fed Put May Be Ending: How a Warsh-Led Regime Change Could Reshape Investing The script argues that the 15-year era of heavy Federal Reserve market support—lower rates, liquidity, and quantitative easing that encouraged “buy the dip” and inflated asset pricing—may be ending under new Fed chair Kevin Warsh, who wants a smaller, quieter Fed with less intervention and fewer tailwinds for growth-at-all-cost assets, shifting markets from liquidity-driven to cash-flow-driven returns. It says this is a regime change more important than any single rate cut, critiques the Fed’s lagging inflation measures, and notes hotter inflation and war-driven energy price spikes complicate near-term easing. The author “handicaps” three likely changes: smoothing inflation data and de-emphasizing the 2% target to allow modest short-rate cuts while keeping long rates higher, potentially selling mortgage-backed securities to pressure mortgage yields, and leaning on AI productivity while debt is inflated away. For income investors, cash/T-bills may become less compelling, volatility may rise without a “Fed put,” and hard assets with pricing power and contractual cash flow may outperform; the biggest mistake is sticking with the post-2009 growth/multiple expansion playbook instead of building durable income portfolios. 00:00 Fed Put Era Ending 00:54 Warsh Regime Shift 01:47 Inflation Data Debate 02:49 Handicapping Not Forecasting 03:51 Three Fed Changes 06:14 Yield Curve Reality Check 06:42 Income Investor Playbook 08:46 Avoid Old Growth Trap 09:08 Build Durable Income 09:34 Wrap Up And Next Steps Hosted on Acast. See acast.com/privacy for more information.
9:42How Business Owners Create Passive Income After An Exit
Episode Description In this episode, Brad Johnson explains how business owners can turn the proceeds from selling a company or experiencing a major liquidity event into passive monthly income that can fund retirement indefinitely. He shares why many entrepreneurs reach the finish line without a real plan for their wealth, why traditional stock-and-bond portfolios often feel misaligned after an exit, and how Evergreen’s two-engine income strategy is designed to create both dependable cash flow today and income growth for the future. Brad also covers the trade-offs of private markets, the importance of choosing the right advisor, and why focusing on income goals can be far more useful than chasing a net worth number. Book a Call https://zpr.io/izgjKaDsgQNw Evergreen Capital info@evergreencap.com Connect with Brad Johnson https://www.linkedin.com/in/bradleyjohnson/ Key topics: • How entrepreneurs can convert a major liquidity event into passive monthly income • Why many business owners feel unprepared for life and money after selling a company • The emotional and practical challenges entrepreneurs face after retirement • The difference between managing investments yourself and outsourcing portfolio strategy • Why traditional ETF-and-bond portfolios often fall short for business owners • How Evergreen’s two-engine income strategy combines private income investments with dividend growth stocks • What goes into vetting high-quality private asset managers • Why many traditional advisors struggle to implement private market strategies • The pros and cons of private investments, including illiquidity • Why setting a passive income target may matter more than aiming for a specific net worth Timestamps: 00:00 - Introduction: Converting Liquidity into Passive Income 00:59 - Post-Retirement Ambitions for Entrepreneurs 01:57 - Options for Portfolio Management: DIY vs. Outsourcing 02:32 - The Limitations of Vanilla Investment Strategies 03:56 - The Evergreen Income Strategy: Two Engines 04:51 - Vetting High-Quality Asset Managers 05:14 - Choosing the Right Advisor for Private Markets 07:04 - The Trade-offs: Illiquidity and Behavior 08:38 - Focusing on Income Goals over Net Worth 10:03 - Next Steps and Resources Hosted on Acast. See acast.com/privacy for more information.
10:19My 10 Worst Real Estate Nightmares
In this episode, Brad Johnson shares ten real-world real estate nightmares that show why rental properties are far from passive. Drawing from over $150 million of investment experience, he walks through costly mistakes, unexpected risks, and operational headaches that investors rarely see coming. Brad also explains why these experiences ultimately led him to shift toward more passive, income-focused investments. Book a Call https://zpr.io/czXpQcCXKQLX Evergreen Capital info@evergreencap.com Connect with Brad Johnson https://www.linkedin.com/in/bradleyjohnson/ Key topics: • Why real estate is often far more operationally intensive than investors expect • The hidden risks that can turn “passive income” into active problem-solving • How natural disasters can create unexpected repair costs and insurance battles • Tenant-related risks, from property damage to eviction challenges • Legal exposure and how small issues can turn into lawsuits • Infrastructure failures and environmental risks in real estate investing • The financial impact of rare but severe events like flooding and system failures • How employee issues and fraud can affect property performance • Why unpredictable expenses can erode returns over time • Why many investors eventually shift toward more passive income strategies Timestamps: 00:00 - Introduction 00:20 - Tornado Damage 01:10 - Unauthorized Dog Breeding 01:34 - Hoarding and Hazmat Cleanup 01:50 - Hurricane Scare 02:06 - The “Professional Tenant” 02:47 - Lawsuit Over a One-Inch Curb 03:14 - Lift Station Failure 03:48 - Ice Dam and Flood 05:03 - Employee Theft 05:43 - Massive Water Leak 06:29 - Why I Moved to More Passive Investments Hosted on Acast. See acast.com/privacy for more information.
7:08The Biggest Mistakes Dividend Investors Make
In this episode, Brad Johnson breaks down the biggest mistakes dividend investors make and why chasing high yield can quietly hurt long-term results. He explains what dividend investors should actually focus on, how to identify stronger businesses with staying power, and why dividend growth matters far more than the highest starting yield. Brad also shares how Evergreen Capital thinks about pairing dividend growth stocks with alternative income-producing assets for high-net-worth investors. Book a Call https://zpr.io/W6JaycaP8EeT Evergreen Capital info@evergreencap.com Connect with Brad Johnson https://www.linkedin.com/in/bradleyjohnson/ Key topics: • Why the goal of dividend investing is lasting income, not just a high starting yield • How yield traps can pull investors into weak businesses with unsustainable payouts • What to look for in quality dividend growth stocks • Why Texas Pacific Land Trust is a useful case study in dividend growth investing • How yield on cost compounds over time • The behavioral benefits of owning cash-flowing investments • Why over-concentrating in REITs can create portfolio risk • How payout ratios help reveal whether a dividend is sustainable • The tradeoff between total return investing and dividend-focused investing • Why high-net-worth investors often prefer income-producing portfolios Timestamps: 00:00 - Introduction to Dividend Investing 00:21 - The Goal of Dividend Investing 00:39 - Avoiding Yield Traps 01:40 - Finding Quality Dividend Growth Stocks 02:34 - Case Study: Texas Pacific Land Trust (TPL) 03:51 - The Power of Yield on Cost 04:31 - Behavioral Benefits of Dividends 05:20 - Risks of Over-Concentrating in REITs 06:08 - Understanding Payout Ratios 07:13 - Total Return vs Dividend Strategy 08:04 - Achieving Market Returns with Quality Growers 09:03 - Strategy for High-Net-Worth Investors Hosted on Acast. See acast.com/privacy for more information.
10:36The Truth Behind The Financial Advisor Industry
In this episode, Brad Johnson explains how the financial advice industry actually works behind the scenes. He breaks down how most advisors are paid, where conflicts of interest can appear, and why many portfolios still rely on outdated strategies like the traditional 60/40 stock and bond allocation. Brad also shares how Evergreen Capital approaches investing differently, with a focus on income-producing assets, private markets, and fee structures designed to better align incentives with clients. Book a Call https://zpr.io/xiRBGeUg5g6q Evergreen Capital info@evergreencap.com Connect with Brad Johnson https://www.linkedin.com/in/bradleyjohnson/ Key topics: • Why most financial advisors rely on the traditional 60/40 stock and bond portfolio • The biggest problem with the standard assets under management (AUM) fee model • How uncapped advisory fees can grow dramatically over time • Where hidden fees and commissions still exist in the financial advice industry • The difference between fiduciary advisors and broker-dealers • Why many advisors avoid private market investments and alternatives • How incentives shape the advice clients receive • The risks of relying on the 4% withdrawal rule in retirement • Why income-producing portfolios may be a better fit for many entrepreneurs and business owners • How AI is beginning to disrupt the traditional financial planning model Timestamps: 00:10 - How do you differentiate between financial advisors? 01:08 - What’s wrong with the financial advisor business model today? 02:40 - How is your company different from other financial advisors? 03:37 - How do financial advisors get paid? Which payment models do you like and which do you find problematic? 06:11 - Where are financial advisors hiding fees in their contracts? 07:04 - How can clients go about identifying fees their current advisor is hiding? 07:58 - Fiduciaries are typically safer, but is knowing they’re a fiduciary enough? 08:49 - In your opinion, many advisors operate in outdated ways. How so? 11:32 - What is the root of the problem? Why do advisors use outdated strategies? 14:01 - What other conflicts of interest do you see in the most common advisor models? 15:40 - How can clients differentiate between recommendations that are strategy based versus incentive based (favor the advisor)? 17:19 - What questions should clients ask their current financial advisors in their next meeting after having watched this interview? 19:55 - How does your investment philosophy effect the strategies you employ for your clients? 20:58 - What are the most common poor fitting recommendations you see wealthy families pushed into? Why do those pitches work? 23:02 - When should wealthy families consider switching from their traditional advisor, to one with a more customized approach? 24:01 - Do you believe traditional financial advisors are an enemy to wealth generation? 30:08 - What patterns should clients learn to identify in financial advice, that will help them safeguard their wealth? 32:20 - Closing thoughts Hosted on Acast. See acast.com/privacy for more information.
35:05Bill Ackman’s $1 Billion Sale (GP Stakes Case Study)
In this episode, Brad Johnson breaks down the recent news of Bill Ackman selling 10% of his hedge fund, Pershing Square, highlighting the strategic reasons behind this move and its implications for GP stakes investing. Discover the key differences between investing in hedge funds and private equity firms and what this means for investors. GP Stakes Research: https://www.evergreencap.com/gp-stakes-investing Evergreen Capital: info@evergreencap.com Connect with Brad Johnson https://www.linkedin.com/in/bradleyjohnson/ Key topics - 5-10 bullets:Why Bill Ackman sold 10% of Pershing Square for about $1 billion, valuing the fund at $10 billion Ackman's growth plans with a potential $25 billion fund aimed at retail investors The significance of valuation multiples: private equity vs hedge funds The importance of a fund's longevity, team stability, and strategy diversity in private equity Risks associated with minority stakes in hedge funds due to key man risk and firm dependence Comparison of private equity and hedge fund structures for minority investments How Ackman's move exemplifies strategic growth and capital deployment in alternative investments Why private equity firms tend to be more stable and less vulnerable than hedge funds What this case reveals about the evolving GP stakes market and investor considerations Brad’s perspective on Ackman’s future success with this strategic sale Timestamps: 00:00 - Bill Ackman’s $1 billion stake sale explained 00:23 - Why hedge fund minority stakes can signal growth, not decline 00:44 - Ackman’s ambitious plans with new funds and growth strategy 01:03 - Valuation implications: what a 10% stake says about Pershing Square 01:56 - How private equity valuations compare with hedge fund multiples 02:21 - The significance of fund longevity and team stability in private equity 02:46 - Risks of investing in hedge fund minority interests 03:23 - Differences between hedge fund and private equity structures 03:46 - The stability and resilience of private equity firms 04:05 - The vulnerabilities of hedge funds in minority stakes 04:57 - Why private equity is a more reliable investment space 06:27 - Final thoughts: Ackman’s future and what this means for GP stakes investing Hosted on Acast. See acast.com/privacy for more information.
6:53$0 to $11K/Month Passive Income: Why Doctors Love Real Estate
In This Episode, You’ll Learn: The Wake-Up Call: Why a surgeon’s salary wasn't enough to solve financial burnout. The Hybrid Approach: How to balance index funds with high-yield real estate. The First Deal: A breakdown of Jordan’s first duplex and his 10% cash-on-cash target. Tax Alpha: How his wife’s "Real Estate Professional Status" (REPS) supercharged their wealth. Scaling Secrets: Moving from one property to a portfolio that produces $11k/month in cash flow. Avoid the "Doctor Trap": The 3 biggest mistakes physicians make when investing in alternatives. Resources Mentioned: The Prudent Plastic Surgeon: prudentplasticsurgeon.com Strategy Call with Evergreen: Book Here The Alternative Investor Newsletter: Join Here Email Jordan: jordan@prudentplasticsurgeon.com Connect with Brad Johnson: Website: evergreencapital.com Chapters: 00:00 – Why financial freedom matters for doctors 03:09 – Index funds vs. Real Estate: The hybrid strategy 04:10 – Breaking down the first duplex deal 06:51 – Systems, automation, and team building 10:26 – Replacing clinical income with passive cash flow 23:25 – Common mistakes doctors make in alternative assets 30:49 – The emotional impact of recurring investment income Hosted on Acast. See acast.com/privacy for more information.
34:32Are You Outgrowing Your Financial Advisor?
Sign up to access our deal flow: https://altinvestor.beehiiv.com/ To speak with our team: info@evergreencap.com This episode challenges the common belief that family offices are only for billionaires, explaining how wealth management should evolve as income and complexity increase. It emphasizes the importance of treating personal finances like an operating system, focusing on after-tax cash flow, and integrating alternative investments for better tax efficiency and cash flow management. The discussion highlights the limitations of traditional financial advice and the benefits of a family office approach, which includes private equity, real estate, and private credit to solve problems that public markets and retirement accounts do not address effectively. Keywords family offices, wealth management, alternative investments, tax efficiency, cash flow, private equity, real estate, financial advice, operating system, personal balance sheet Takeaways Family offices aren't just for billionaires. Traditional advice often stops working as wealth grows. Focus on after-tax cash flow, not just retirement accounts. Integrate private investments for better tax efficiency. Treat personal finances like an operating system. Ask how capital should be deployed for maximum returns. Consider alternative investments for predictable income. Avoid unnecessary ordinary income tax. Coordinate investments, taxes, and liquidity. Build a system, not just a portfolio. Title Options Rethinking Wealth: Beyond Billionaire Family Offices Transforming Personal Finance into an Operating System The Hidden Costs of Traditional Financial Advice Unlocking the Power of Alternative Investments Family Office Strategies for Everyday Investors Maximizing Returns with Tax Efficiency Beyond ETFs: A New Approach to Wealth The Family Office Mindset: Not Just for the Ultra-Rich Building Wealth with Private Investments From Retail Advice to Family Office Thinking Sound bites Family offices aren't just for billionaires. Traditional advice stops working as wealth grows. Focus on after-tax cash flow. Integrate private investments for efficiency. Treat finances like an operating system. Maximize returns with strategic capital deployment. Predictable income through alternative investments. Avoid unnecessary ordinary income tax. Coordinate investments, taxes, and liquidity. Build a system, not just a portfolio. Hosted on Acast. See acast.com/privacy for more information.
5:54The Real Reason Wealthy Investors Love Real Estate (It’s Not Cash Flow)
Apply for a Strategy Call with Evergreen: https://bit.ly/4pqK1Kk The discussion delves into how the ultra-wealthy leverage real estate investments to generate significant paper losses, which in turn compound their wealth and reduce taxes. The conversation highlights the impact of the new tax bill, allowing accelerated depreciation, and emphasizes the strategic importance of choosing the right property types to maximize tax advantages. The long-term strategy of using real estate as a major asset class for tax benefits is explored, showcasing how the tax code rewards ownership of productive assets. Keywords real estate, tax strategy, ultra-wealthy, depreciation, tax bill, property investment, paper losses, wealth compounding, tax advantages, productive assets Takeaways The ultra wealthy buy real estate for the tax losses. Large paper losses compound wealth and reduce taxes. The new tax bill allows accelerated depreciation. Federal and state taxes can be significantly reduced. Depreciation is a key concern for the wealthy. Think of depreciation as a consistent tax strategy. Real estate is a long-term strategy for the wealthy. Choosing the right property types is crucial. Real estate is the only major asset class for tax benefits. The tax code rewards owning productive assets. Sound bites The ultra wealthy buy real estate for tax losses. Large paper losses compound wealth. Accelerate everything 15 years or less. A $500,000 paper loss can translate. Depreciation is a consistent tax strategy. The wealthy use real estate for tax benefits. Maximize tax advantages with the right property. Real estate shows a loss, reduces taxes. The tax code rewards owning productive assets. Real estate is the only major asset class. Chapters 00:00:08 Introduction to Real Estate and Taxes 00:01:09 Impact of the New Tax Bill 00:03:22 Federal and State Tax Reduction 00:04:23 Depreciation as a Strategy 00:05:40 Long-Term Real Estate Strategy 00:07:06 Choosing the Right Property Types 00:08:31 Real Estate as a Major Asset Class 00:08:48 Tax Code and Productive Assets Hosted on Acast. See acast.com/privacy for more information.
9:53Why Most First-Time Funds Fail And How GP Seeding Changes the Odds | Bridger Pennington
In this episode, Brad Johnson sits down with Bridger Pennington, founder of FundLaunch and FundLaunch Partners, to break down why most first-time funds struggle and how GP seeding is reshaping the private markets. Bridger shares how his firm reviews more than 1,200 emerging manager applications a year, why micro-funds can outperform larger peers, and how GP stakes combined with operational support create asymmetric upside. The conversation also dives into FundLaunch AI, a new platform designed to cut fund formation timelines from months to days. What You’ll Learn Why most first-time funds fail before they ever scale How GP seeding works and why institutions are increasingly focused on it The difference between institutional GP stakes and micro-fund seeding How FundLaunch filters 1,200 managers down to roughly 10 investments Why niche strategies outperform at smaller fund sizes How tranche-based capital and option-like structures reduce downside risk Why no-fee, no-carry GP economics matter for long-term compounding What institutional investors actually look for in Fund II and Fund III How FundLaunch AI aims to replace expensive early-stage legal and structuring work Why ownership and private markets matter in today’s economic cycle Key Topics Discussed GP seeding and GP stakes Emerging and first-time fund managers Micro funds vs institutional funds Private equity, private credit, real estate, and niche strategies Fund formation, compliance, and back-office infrastructure AI and software in private fund creation Long-term compounding through GP economics Hosted on Acast. See acast.com/privacy for more information.
30:24Richard Wilson: How Billionaires Structure Deals
In this episode, we sit down with Richard Wilson, founder of the Family Office Club, to pull back the curtain on how the ultra-wealthy manage, protect, and grow their fortunes. With a community representing over $14 trillion in assets, Richard shares insider strategies that go far beyond standard wealth management. We dive deep into the "Billionaire" playbook for deal structuring—explaining why the wealthiest investors care less about fees and more about custom terms like warrants and gross revenue royalties. Richard also reveals how family offices are leveraging Artificial Intelligence to automate due diligence, acting as a "second brain" to process deals faster and more deeply. Whether you are an investor looking to start your own family office, or a sponsor seeking to raise capital from them, this episode provides a rare look into the operational and investment tactics of the super-rich. Evergreen Capital: www.evergreencap.com info@evergreencap.com Family Office Club: FamilyOffices.com Hosted on Acast. See acast.com/privacy for more information.
27:11How the Ultra-Wealthy Are Investing Right Now
www.evergreencap.com info@evergreencap.com In this episode of "The CIO Brief," Brad Johnson, Managing Director and CIO of Evergreen Capital, delves into the complexities of the current economic landscape. From the lessons learned from legendary figures like Jamie Dimon to the evolving attitudes towards cryptocurrency, Brad offers insights into market trends and investment strategies. Join us as we explore the intricacies of family office investments, the impact of geopolitical concerns, and the future of digital currencies. Whether you're an investor or simply curious about the financial world, this episode provides valuable perspectives on navigating today's economic challenges. Hosted on Acast. See acast.com/privacy for more information.
13:12Tax-Loss Harvesting on Steroids: Long/Short Direct Indexing
In this episode, Brad Johnson explores the world of tax loss harvesting, covering basic to advanced strategies. Learn how to leverage these techniques to enhance your investment portfolio and reduce tax liabilities. www.evergreencap.com info@evergreencap.com 0:00 Introduction to Tax Loss Harvesting 5:00 Basic Tax Loss Harvesting Explained 15:00 Direct Indexing and Its Benefits 25:00 Advanced Strategies with Leverage 35:00 Common Mistakes and How to Avoid Them 45:00 The Future of Passive Investing 55:00 Conclusion and Final Thoughts Disclaimer: This podcast is for informational and educational purposes only. It should not be construed as investment, tax, or legal advice. Opinions expressed are those of the host and guests and do not necessarily reflect the views of Evergreen Capital or its affiliates. All investments involve risk, including the possible loss of principal. Past performance is not indicative of future results. Listeners should consult their own financial, tax, and legal professionals before making any investment decisions. Advisory services are offered through Evergreen Capital, a registered investment adviser. Hosted on Acast. See acast.com/privacy for more information.
24:36The Most Important Investing Lesson of the Last 20 Years
Brad shares his philosophy on the importance of holding prime assets and the compounding advantages of quality investments, whether in stocks or real estate. https://www.evergreencap.com/ Keywords investing, quality assets, investment philosophy, market efficiency, long-term returns Takeaways Quality over high returns is key in investing. Market efficiency has increased over the years. ETFs are recommended for most client portfolios. Prime assets retain value even in downturns. Quality investments compound advantages over time. Real estate can offer long-term returns. Distressed assets are risky but can be opportunities. Holding quality assets leads to compounding capital. Investing in quality can feel uncomfortable but pays off. Focus on quality is the major lesson in investing. Hosted on Acast. See acast.com/privacy for more information.
4:36Robinhood Joins the S&P 500: No Crying in the Casino
The episode discusses Robinhood's induction into the S&P 500, exploring its impact on the investment landscape. It highlights Robinhood's role in educating young investors, the risks of fast-paced trading, and the shift towards modern technology in investment platforms. Evergreen Capital www.evergreencap.com Takeaways Robinhood's entry into the S&P 500 marks a significant shift in the investment landscape. The app has 15 million customers and generates substantial revenue from brokerage fees. Robinhood educates young investors but also encourages risky trading behaviors. The experience of losing money can be a valuable lesson for young investors. Robinhood's fast-paced trading style has both pros and cons. The app's user-friendly interface appeals to younger generations. There's a growing trend towards cryptocurrency and modern technology in investing. Traditional investment platforms lack the sleek user experience of Robinhood. The shift from old to new guard in the S&P 500 reflects changing market dynamics. Future investors will likely prioritize modern technology in their investment choices. Hosted on Acast. See acast.com/privacy for more information.
4:36Royalty Investments and Niche Credit with Jillian Murrish
Summary In this episode, Brad Johnson from Alternative Investor and Evergreen Capital interviews Jillian Murrish of Pier Asset Management. They delve into the world of alternative credit, focusing on niche areas like specialty finance, music royalties, and litigation finance. Jillian shares insights on how Pier Asset Management navigates these unique investment opportunities, emphasizing their strategy of targeting smaller, overlooked deals to generate returns. The conversation also touches on the challenges and rewards of investing in niche credit markets. Evergreen Capital https://www.evergreencap.com/ Pier Asset Management https://www.pieram.com/ Takeaways Alternative credit offers unique investment opportunities. Peer Asset Management focuses on niche, overlooked deals. Music royalties can be a lucrative investment. Litigation finance supports small tech companies. Niche credit markets require specialized knowledge. Cashflow investing is a core strategy for Peer Asset Management. Smaller deals often yield higher returns. Peer Asset Management avoids mainstream asset gathering. Investing in niche markets can diversify portfolios. Understanding market dynamics is crucial for success. Keywords alternative credit, specialty finance, music royalties, litigation finance, niche investment, Pier Asset Management, Brad Johnson, Jillian Murrish, cashflow investing, private credit Hosted on Acast. See acast.com/privacy for more information.
41:00Opportunity Zone Investing 2.0
Investment Strategy Spotlight: Understanding Opportunity Zone 2.0 This episode focuses on the new regulations brought about by the Tax Act of July, specifically the enhancements in Opportunity Zones, termed Opportunity Zone 2.0. The speaker explains the original Opportunity Zones program, its benefits of tax deferrals and exemptions for investments in designated areas, primarily housing and development projects. The updated program continues to offer a rolling five-year deferral starting in 2027 and extends tax benefits for investments held over ten years without capital gains taxes. Additionally, the new Opportunity Zone 2.0 includes bonus depreciation advantages. Emphasis is placed on combining tax benefits with sound investment choices to avoid tax-driven pitfalls. Ideal candidates for this program include individuals with significant capital gains seeking real estate or high-quality development investments. 00:00 Introduction to Investment Strategy Spotlight 00:15 Opportunity Zones 1.0: A Recap 01:44 Opportunity Zones 2.0: New Regulations and Benefits 02:29 Maximizing Tax Benefits with Opportunity Zones 03:49 Combining Tax Strategies with Great Investments 05:27 Ideal Candidates for Opportunity Zone 2.0 06:38 Considerations and Risks in Opportunity Zone Investments 08:31 Future Opportunities and Conclusion www.evergreencap.com Hosted on Acast. See acast.com/privacy for more information.
9:21Private Market Investing with Tony Davidow of Franklin Templeton
To learn more about private market investing, visit: www.evergreencap.com In this episode, Tony David from Franklin Templeton delves into the complexities and opportunities in private markets for wealth advisors. As Franklin Templeton's expert on private asset education, Tony discusses his journey from consulting to leading educational initiatives within the firm. The conversation covers essential topics like the importance of education in private markets, the evolving landscape of private credit, secondary markets, the growth of model portfolios, and the potential inclusion of private assets in 401(k) plans. Tony also emphasizes the significance of maintaining a balance between illiquidity and accessibility for investors. A must-listen for advisors looking to enhance their offerings and navigate the complexities of alternative investments. 00:00 Introduction to Tony David and His Role 00:16 The Importance of Education in Private Markets 01:43 Challenges and Opportunities in Private Markets 07:19 Franklin Templeton's Private Market Focus 09:25 Understanding Private Credit and Secondaries 16:39 The Future of Private Markets and Model Portfolios 25:01 The Role of Private Assets in 401(k)s 26:41 Overcoming Skepticism and Embracing Alternatives 36:45 Conclusion and Final Thoughts Hosted on Acast. See acast.com/privacy for more information.
37:13The Case for Real Estate Debt Investing: High, Defensive Yield
Opportunities in Commercial Real Estate Debt: A Deep Dive Email for Commercial Real Estate Debt Investing Research: info@evergreencap.com The video discusses the current investment opportunities in commercial real estate debt, highlighting that investing is always challenging due to the unpredictability of the future and market factors. The speaker explains why now is a particularly opportune time for commercial real estate debt investment, given the recent substantial market correction, decreased property values, and higher interest rates. The video also covers the benefits of investing in multi-family and high-quality assets, the impact of increased capital reserve requirements on banks, and the resulting opportunities for private lenders. Key points include the growing role of private lenders, the protective structure of commercial real estate debt investments, diversification strategies, and projected returns that could rival equity investments. The script concludes with an invitation to contact evergreen cap.com for further information. 00:00 Introduction: The Challenge of Investing 00:39 Current Real Estate Market Context 01:13 Understanding Commercial Real Estate Debt 02:01 The New Lending Landscape 03:28 Opportunities in Private Lending 07:06 Future Outlook and Conclusion Hosted on Acast. See acast.com/privacy for more information.
11:50Real Estate Headwinds, PE Tailwinds: The Apollo-Bridge Deal
Apollo's Strategic Acquisition: Bridge Investment Group In this episode, we delve into Apollo's recent acquisition of Bridge Investment Group for $1.5 billion, a strategic move involving the purchase of a real estate specialist known for its asset management capabilities. The discussion covers why this transaction occurred and its implications for the private equity and GP stakes investing worlds. The acquisition, which includes 50 billion in assets under management, highlights how Apollo can leverage Bridge's expertise in real estate and fundraising, driving future growth and diversifying their revenue streams. Additionally, it explores the contrasting challenges faced by public versus private equity firms and the advantages Apollo gains from this deal. 00:00 Big News in Private Equity: Apollo's Acquisition of Bridge Investment Group 00:38 Transaction Details and Financial Implications 01:24 Strategic Benefits for Apollo and Bridge 04:41 Challenges and Opportunities in Real Estate 06:58 GP Stakes Investing Insights 09:35 Conclusion and Key Takeaways Hosted on Acast. See acast.com/privacy for more information.
10:18Trump's Impact on Alternative Investments
Feel free to email Evergreen Capital at: info@evergreencap.com www.evergreencap.com The Impact of the Trump Administration on Alternative Investments This episode discusses how the Trump administration's policies are expected to impact alternative investments, particularly private equity and real estate. We examine potential benefits such as lower corporate taxes, the carried interest tax loophole, reduced regulations, and the excitement within the investment community post-election. We also consider possible challenges, including tariffs and their effect on consumer pricing and interest rates. The episode concludes with a focus on growth-oriented American policies and the outlook for increased MNA activity and IPOs in the coming years. 00:00 Introduction: The Trump Administration's Impact on Alternative Investments 00:21 Post-Election Optimism in the Investment World 01:29 Private Equity: Benefits Under the Trump Administration 04:51 Private Equity: Potential Drawbacks and Tariffs 06:16 Real Estate: Trump's Influence and Interest Rates 07:05 Real Estate: Tax Policies and Opportunity Zones 08:59 Real Estate: Regulatory Changes and Market Impact 10:45 Conclusion: Growth-Focused Policies and Future Outlook Hosted on Acast. See acast.com/privacy for more information.
12:18Investing Is A Game Of Survival
info@evergreencap.com www.evergreencap.com Mastering Alternative Investments with Evergreen Capital's Brad Johnson In this episode of Roger Becker of Street Smart Success, interviews Brad. They delve into a range of alternative investment topics, emphasizing Brad's core investing principles. Brad briefly shares his background, including his journey from a career in real estate and private equity to establishing Evergreen Capital. He explains how his company focuses on durable investments with significant cash flow elements. The conversation covers various alternative asset classes, including real estate, private credit, and private equity strategies like GP stakes. Johnson provides insights into the allocation strategies for individuals looking for capital preservation and growth. He stresses the importance of avoiding over-leveraging and focusing on downside protection. The episode offers valuable lessons for investors interested in diversifying their portfolios with alternative assets. 00:00 Introduction to the Episode 00:48 Meet Brad Johnson: Real Estate and Alternative Investments 01:45 Brad's Journey: From Real Estate to Mobile Home Parks 03:55 The Challenges and Rewards of Mobile Home Park Investments 06:46 Transition to Evergreen Capital and Investment Philosophy 09:04 The Role of Alternative Investments in Portfolios 15:58 Understanding Private Credit and Debt 20:36 Client Strategies and Asset Allocation 23:37 Investor-Friendly Alternatives 23:58 Investment Minimums and Retail Investors 24:47 Future of Alternative Assets 25:48 Fee Structures and Fund Preferences 28:13 GP Stakes and Private Equity 36:03 Real Estate and Inflation Concerns 40:23 Key Lessons in Investing 41:46 Personal Insights and Conclusion Hosted on Acast. See acast.com/privacy for more information.
43:08Want to Own an NFL Team?
Email: info@evergreencap.com Durable Alternative Investments www.evergreencap.com Private Equity and the NFL: A New Frontier in Pro Sports Investment This video discusses the recent development of the NFL allowing private equity firms to buy minority interests in its teams, marking the entry of professional sports into the alternative investment space. Historically limited to billionaires, pro sports investments are now accessible to high net worth investors, with the NFL's sizable media rights and diverse revenue streams making it an attractive asset class. The speaker shares excitement about the potential for direct NFL deals and the expansion of pro sports investments in investor portfolios. 00:00 Introduction to Pro Sports as an Investment 00:32 NFL's New Private Equity Investment Opportunity 01:14 The Appeal of Pro Sports Investments 01:28 The Financial Dynamics of Pro Sports 04:46 The Future of Pro Sports Investments 05:23 Personal Insights and Conclusion Hosted on Acast. See acast.com/privacy for more information.
6:28Mobile Home Park Investing (With a Heart)
Email: info@evergreencap.com What works in mobile home park investing today. In this episode, Brad Johnson, managing partner of Evergreen, delves into the intricacies of mobile home park investments. Drawing from his extensive experience, Brad discusses the evolution of the market over the past decade, highlighting both the challenges and opportunities in today's landscape. He emphasizes sustainable rent increases, strategic operational approaches, and the need for proper capital allocation. Brad provides insights on techniques that work, such as incremental property improvements, creative transactions, and thoughtful management, comparing successful operations to precision military tactics. He also covers the importance of market conviction, unique deal flow strategies, and the complexities of total overhauls and infill strategies. Whether you're an emerging investor or a seasoned operator, Brad's advice offers valuable lessons on navigating this increasingly institutional asset class. 00:00 Introduction to Evergreen and Mobile Home Park Investments 01:18 Challenges in the Mobile Home Park Space 03:30 Common Mistakes in Mobile Home Park Investments 07:16 Effective Strategies for Mobile Home Park Operations 10:28 Advanced Tactics for Driving Alpha 17:41 Creative Deal Structures and Market Insights 26:45 Why Now? Mobile Home Park Investing Hosted on Acast. See acast.com/privacy for more information.
27:45Raising Private Capital in Tough Times
Email: info@evergreencap.com Mastering Fundraising: Tips and Strategies from a Decade of Experience In this episode, the speaker shares insights and strategies for successful fundraising, gleaned from over a decade of experience. The session covers four main steps to secure funding, understand what high-net-worth investors seek, maintain legal and compliance standards, and build trust with prospective investors. Key points include the importance of focusing on a niche for easier market entry, dedicating efforts to one marketing channel, sharing your journey with investors, and providing transparent and professional documentation. The speaker also discusses the distinctions between accredited and ultra-wealthy investors, common mistakes to avoid, and how to use friends and family funding smartly. The episode concludes with thoughts on the broader benefits of mastering fundraising, such as financial security and new career opportunities. 00:00 Introduction to Fundraising Insights 00:11 Four Steps to Successful Fundraising 00:16 Understanding Investor Expectations 00:48 Choosing Your Investment Niche 03:00 Focusing Your Fundraising Approach 04:28 Sharing Your Investment Journey 06:16 Building Trust with Investors 08:24 Engaging High Net Worth Individuals 11:20 Common Fundraising Mistakes 13:20 Q&A Session 20:38 Final Thoughts and Advice Hosted on Acast. See acast.com/privacy for more information.
22:45Understanding Private Credit
Private Credit is a favored asset class among ultra high net worth investors. Due to its much higher return and reduced risk profile, we believe it should replace a large percentage of bond allocations in investor portfolios. This episode covers a few of the basics to set the foundation for later podcasts that will go deeper into the weeds on Private Credit investing. Private credit has existed since the early 2000s but is relatively new to many investors. The concept involves making large-scale loans to companies that can't obtain credit from traditional banks. This need emerged post-financial crisis when banks faced stricter regulations. Private credit offers benefits like high monthly returns with lower risk compared to bonds or stocks. The script explains vital terms such as capital structure, preferred equity, mezzanine debt, senior secured debt, call protection, and covenants, illustrating their roles in making private credit a safer investment. 00:00 Introduction to Private Credit 00:18 The Rise of Private Credit Post-Financial Crisis 01:41 Understanding Capital Structure 03:24 Key Terms in Private Credit 06:01 Conclusion and Final Thoughts Hosted on Acast. See acast.com/privacy for more information.
6:32What is GP Stakes Investing?
Access GP Stakes Research: https://evergreencapital.ck.page/a03f9580fe GP Stakes investing is Brad's favorite alternative investment asset class - learn why in this episode. Evergreen Capital www.evergreencap.com info@evergreencap.com Hosted on Acast. See acast.com/privacy for more information.
10:36The Alternative Investor 2.0
Evergreen Capital www.evergreencap.com info@evergreencap.com Hosted on Acast. See acast.com/privacy for more information.
3:25Grayson is Finally Buying a Company!
Today is an incredibly big day! Grayson may be closing on a huge deal tonight. It’s been a long time coming but it’s finally happening! He quit his last job about 3+ years ago and since then he’s been looking to buy a business and has gone through about 5000 different companies, sorted through many different websites, and talked to lots of different owners — but it was all worth it, because he’s finally found one that he loves and is super excited about. He’s completed all of the purchase agreement documents and soon… all will be finalized! So today’s episode is going to provide as a recap for what Grayson has been up to for the last couple of years. Hopefully it will serve as both inspiration — but also as a cautionary tale for those of you who want to get out there and buy your own deal! Today we’re going to be sharing the good, the bad, and the ugly. So tune in to learn some of the ins and outs of buying your first deal! Key Takeaways: [:11] All about today’s episode! [3:18] So what is Grayson buying?! [6:33] How Grayson and his partner found this deal. [7:58] What does the transition look like after purchasing this deal? [10:34] What Grayson learned from being an investor! [15:30] The importance of balancing investing and operations. [19:03] What’s next for the podcast? Topics we’ll be focusing on in future episodes. [20:58] Opening it up to you! What would you like to hear from us next? Email us! Mentioned in this Episode: Performio.co Brad@EvergreenCap.com Grayson@StablesPartners.com For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! Hosted on Acast. See acast.com/privacy for more information.
25:19How to Hire a Broker
et’s say you find yourself in the fortunate position to have a wonderful asset that you’ve operated for a number of years — whether it’s real estate or an operating business — and you’re ready to sell it. And now, you’re faced with the decision of how to actually sell it. Do you hire a banker or a broker? And if so, how do you go about finding a good one? Today we’re answering both of these questions and filling you in on all of the juicy details of hiring a broker! Key Takeaways: [:11] About today’s episode. [:48] Should you hire a banker or a broker? And what is the difference between the two? [6:02] Why don’t people hire a banker or a broker? [8:49] How much does a decent banker or broker cost? [11:51] How to find and identify a good broker! Mentioned in this Episode: Broker Lehman formula For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! Hosted on Acast. See acast.com/privacy for more information.
22:16We Talk about a Purchase Agreement
After 2 ½ years of looking for a software business to buy with my partner, I think we’re finally getting towards the end! And at the end of the due diligence process when you’re going to buy a company… you’ve got to sign a purchase agreement. This purchase agreement is the big contract; it’s the document that lays out all the final terms and conditions. And when it’s signed, the money is wired — and it’s official: you own the company. So because this is all so timely for us, today we’re going to be talking all about purchase agreements! In fact, we’ll be going through the actual 57-page document I received for this software business to explain each section to give you all an idea of what to expect when it comes to negotiating your first purchase and sale agreement! Key Takeaways: [:11] About today’s episode on purchase agreements! [2:22] We begin looking at the 57-page purchase agreement word doc, starting with an overview of the table of contents and section 1, the glossary. [5:09] Reviewing section 2: the purchase and sale of parent shares. [9:40] Reviewing the following three sections that cover representations and warranties — first up, those concerning the company. [16:30] Next up, we take a look at the sections covering representations and warranties of the sellers. [17:55] Taking a look at the representations and warranties concerning the buyer. [18:58] Reviewing the section that covers the additional agreements. [19:52] Checking out section 7: identification and related matters. [23:03] Wrapping up the podcast with some final points about purchase and sale agreements! [24:54] What should you be focusing on when negotiating these documents? [28:14] Thanks for tuning in! Mentioned in this Episode: Purchase and Sale Agreement For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! Hosted on Acast. See acast.com/privacy for more information.
28:52What is a Cap Rate?
Today is going to be our all-encompassing, definitive episode all about on cap rates! What are they? How they are used? What’s the whole deal here? Tune in to find out! We discuss how they relate to interest rates, what they indicate, what they’re useful for, what they’re used for on a day-to-day basis in real estate investing, and how you should be thinking about cap rates if you’re thinking about getting into the real estate investing world. We also give several examples of how to find the cap rate! Key Takeaways: [:11] About today’s episode. [1:01] What is a cap rate? [2:59] A quick example of how to find the cap rate and what it indicates. [4:51] How cap rates relate to interest rates. [7:52] What cap rates come down to and what’s important to remember. [10:51] The useful thing about cap rates! [11:29] How those in real estate use cap rates on a day-to-day basis. [14:24] A range of where cap rates fall now. [16:27] How you should be thinking about cap rates if you’re thinking about getting into the real estate investing world. Mentioned in this Episode: Cap Rate For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! Hosted on Acast. See acast.com/privacy for more information.
18:31Investors Need Love Too
In this episode we’re going to be talking about investor relations — i.e. staying in touch with your investors and maintaining good relationships with them. Investors are people too, y’know! Just like your friends or spouse, they want to be kept in the loop and know what’s going on. They’ve given you money to go out and do a job… But they don’t want to just give you the money and be left in the dark; they want to know what’s going on! Tune in to learn more about what goes into a typical investor update, how often you should send one out, and the many benefits that come with it! Key Takeaways: [:20] What is investor relations? [1:10] The hard part about investor relations. [3:32] What is in a typical investor update? And how often should you send them out? How long are they? [12:50] Should you reach out to your investors outside of the formal updates? [15:22] Summarizing our key points about investor relations! Mentioned in this Episode: Investor Relations Howard Marks Warren Buffett For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! Hosted on Acast. See acast.com/privacy for more information.
19:06How to Read a K-1
Today’s episode is all about taxes! Specifically, we’re going to be talking about K-1s. A K-1 is a tax form that you get from private investment (typically an LLC.) on an investment you’ve made. This is the tax form you’re going to get yearly from that sponsor so you can pay your taxes on that income. If you’re ever going to be making investments in alternative assets, most likely you’re going to be getting a K-1. Be sure to tune in to get all the basis on what exactly a K-1 is, how they work, the key pieces of information within them, their benefits, and our tips! Key Takeaways: [:12] About today’s episode! [:48] What is a K-1? [3:54] The key pieces of information in the K-1; covering box 1 and 2 of the K-1. [10:21] Discussing box 19 of the K-1: the distribution (the actual cash flow you receive that year from your investment.) [13:07] Discussing box L: the partner’s capital account analysis (which keeps track of your basis in the investment.) [14:53] Working through an example to illustrate how a K-1 works. [15:26] When do you get a K-1? How should investors investing in alternative assets be thinking about K-1s? And are they a huge headache or are they pretty straight forward? [16:44] Our tip for if you’re receiving many K-1s. [18:41] The bottom line of K-1s! [19:12] How to go about doing your K-1s. Mentioned in this Episode: K-1 Pass-Through Entity For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! Hosted on Acast. See acast.com/privacy for more information.
20:28Productivity Porn
Productivity and how you get things done on a day-to-day basis is an ever-present issue for most everyone — including those in investing and alternative investing. There’s lots to do on a daily basis and you’ve got lots to juggle, so we want to help you make sure that you’re focusing on the right things to truly maximize your productivity! Tune in to learn more about how to prioritize the right tasks, manage your calendar and emails, maximize your productivity, and how to accomplish all your goals during your work day. Key Takeaways: [:12] About today’s discussion. [1:47] Mind, body, and wellness — how to get your mind and body in check to maximise your productivity. [5:55] How we prioritize throughout the day. [10:16] Getting stuff done — our tips, tricks, and tools for accomplishing your goals during the day. [18:00] How to manage your calendar and emails. [24:15] Where we think we can most improve productivity-wise during our work days. [26:30] Email us your favorite productivity tips and we’ll read them out on a future episode! Mentioned in this Episode: Getting Things Done (David Allen) Grayson@StablesPartners.com For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! Hosted on Acast. See acast.com/privacy for more information.
27:45How to Raise Debt for a Real Estate Project
We’ve talked about finding deals, sourcing deals, putting a pitch deck together, raising money, and all that stuff — but we haven’t yet talked about how to go about raising debt for a real estate project. So today, we’re going to outline how to get debt from the more conventional (or traditional) sources. We’ll be covering: seller financing, regional banks, agencies that are representing Fannie and Freddie, and large commercial mortgage-backed security loans. Pull up a chair and join us for this real estate-centered conversation on raising debt! Key Takeaways: [:12] Reading our favorite funny review from the last couple of weeks! [1:45] About today’s episode. [2:25] The first step to raising debt for a real estate project: obtaining a loan. [8:11] If you’re just looking to borrow money for a deal, how much should you care about the structure of the loan? [10:16] What information is a balance sheet lender or regional lender going to need to know in order to make a decision about whether or not they’re going to lend you money? [14:24] So which loan should you take — an agency loan or a CMBS? [18:18] How do you know if you’re getting a CMBS loan? And what do these types of lenders look like? [19:32] How big does a deal have to be to qualify for a CMBS loan? [20:05] Where do the big costs come in with a CMBS loan? [21:31] Summarizing the four sources of debt mentioned in this week’s episode and giving some final, additional pieces of information. [23:04] In conclusion: our take on what the best options are. Mentioned in this Episode: Balance Sheet Lender Fannie Mae and Freddie Mac Bellwether CMBS CDO For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! Hosted on Acast. See acast.com/privacy for more information.
26:43The Three Most Important Investment Metrics
We’re getting technical today — so fasten your seatbelts, buckle up, take an extra sip of coffee and get ready for today’s show. We’re going to be diving into the topic of the three most important investment metric:; NPV (Net Present Value), IRR (Internal Rate of Return), and MOIC (Multiple on Invested Capital.) These metrics are incredibly valuable because, at the end of the day, these are the measures that help investors know how much money they’re going to get back in their pockets after investing in your deal. We hope you’ll join us today to learn about these three important metrics! Key Takeaways: [:12] About today’s topic! [:41] What do NPV, IRR, and MOIC stand for? [1:54] What is NPV? What does it indicate? [5:48] What is IRR? How does NPV and IRR compare? [9:08] What is MOIC? What does it indicate? [10:11] Key takeaways of IRR, NPV, and MOIC — and what investors are looking for. Mentioned in this Episode: NPV IRR MOIC Excel XIRR For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! Hosted on Acast. See acast.com/privacy for more information.
15:39What Should Go In Your Private Equity Pitch Deck
We’ve talked about sourcing and analyzing deals — but, we’ve yet to really get into the details of what goes into the pitch deck. The pitch deck is the document you’re going to send out to your investors to let them know about the deal, market it to them, and give them the opportunity to make a decision. So today we’re going to talk about when you’re going to go out and buy a business, what should be in your deal deck. Brad also plays the role of a potential investor, and gives his take on each section in terms of what he would want to see to feel confident in investing. Key Takeaways: [:12] About today’s topic. [:50] Where to start with creating your pitch deck. [1:33] The first pieces of information you should include in your pitch deck. [4:22] How to provide an effective overview of your business in the pitch deck. And what investors are looking for. [8:26] The next section you should include in your pitch deck: an industry overview and a look at the market. [10:07] The meat of your deck: the financial analysis section. And the key metrics investors look at. And the key scenarios you should include in your deck. [15:00] The next section: a summary of key opportunities and risks. [18:08] The last section: the post-acquisition plan. [22:09] Summarizing our key points. Mentioned in this Episode: Word Powerpoint Keynote For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! Hosted on Acast. See acast.com/privacy for more information.
24:05We Talk To A Guy With An Innovative Apartment Investment Strategy
This week on the show, we’ve invite on a real estate expert: Moses Kagan! Moses is a partner of Adaptive Realty — a property management company in Los Angeles. Adaptive Realty has a unique strategy with apartment buildings; instead of simply buying buildings and repainting and upgrading appliances, they do huge, wholesale renovations. They vacate all the tenants and completely redesign the properties. This enables them to double the rent whereas most apartment value ad folks incrementally increase the rent 20-30% after renovations. It’s a very unique strategy, and in this episode, we’re going to get into all of the juicy details on how Moses has pulled this strategy off. We talk about how he originally fell into the industry 10 years ago, how he survived the early lean years of being a real estate entrepreneur, the mistakes he’s made along the way (including selling way too early for his first few deals), and finally, his graduation from short-term funds to more long-term permanent equity vehicles (where he can renovate the properties and hold them indefinitely). Today’s episode was incredibly insightful and we hope you have as much fun listening to it as we had recording it! Key Takeaways: [:11] About this week’s episode with Moses Kagan. [1:10] Welcoming Moses to the podcast! [1:41] Moses explains what they do at his company, Adaptive Realty. [4:55] Moses tells the story of how he got started (before starting Adaptive Realty) and some of his early experiences in buying real estate. [22:02] How Moses originally got funding, and how they got people to leave the apartment so they could renovate. [23:52] How they renovated the buildings to beat out the competition. [25:25] Moses talks about the possible percentage increase for rent in these renovated apartments. [26:52] Moses explains their second apartment deal, whether or not they were making money at this point in time, and how they made that second deal. [29:05] Their strategy over the next couple of years for buying buildings [29:19] Moses talks about what they did after having to liquidate all their buildings, starting back at “square one.” [34:19] The steps Moses took when trying to rebuild: starting a blog, discovering that the best deals were the fixer-uppers, and ultimately, the creation of Adaptive Realty. [44:09] After raising their first fund, Moses explains his next steps. [48:37] What Moses recommends to anyone who is starting out in this business. [49:24] How Moses and his partner continued to build Adaptive Realty. [55:15] Moses discusses some of the challenges with their business model and the way their business has grown. [1:00:22] Moses speaks about their progress towards more permanent equity. [1:02:20] Moses’ advice to those new in this business. [1:06:15] Where to find Moses online. Mentioned in this Episode: Adaptive Realty Moses Kagan (LinkedIn) Moses Kagan’s Blog The Alternative Investor EP.38 — “We Talk to a Guy Who Bought a Business with an SBA Loan” For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! Hosted on Acast. See acast.com/privacy for more information.
1:07:08You Just Bought Real Estate, Now What? - EP.39
We’ve spent a lot of time on this podcast telling you how to find alternative investments — how to buy them, how to raise money for them, and more — but we haven’t talked a lot about what to do after you close. It’s really no exaggeration to say that a lot of stuff happens after closing — so today, we’re going to get into everything you need to know about what happens after you buy a real estate property! We talk property managers, important steps to take before closing, what you should do immediately after closing, how to go about improving or changing up things in the property, how quickly you should roll out these changes, and more. We hope you’ll join us! Key Takeaways: [:12] About today’s episode! [1:04] What should you do immediately after buying real estate? [6:50] Do you have a property manager set up before you close? And what is the property manager’s role? And what kind of revenue do you need to be taking in per year to be able to support a property manager or property management company? And what percentage of the total rent do they take? [10:10] Should you use the building’s existing property manager? [10:47] Other things you need to make sure you’re doing once you’ve acquired a real estate property. [14:00] More important details to remember after acquiring a real estate property. [14:57] How to go about improving or changing things up in the property. [15:41] How quickly should you roll out changes? Should you give people time to settle in to the new ownership? [18:50] How to make renters excited about change. [20:44] If you had to raise capital to purchase this building and have investors, what should you do immediately after closing? [21:55] Wrapping up this week’s topic. [23:55] We’d really appreciate if you could leave us a nice review on iTunes! For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! Hosted on Acast. See acast.com/privacy for more information.
24:55We Talk to a Guy Who Bought a Business with an SBA Loan - EP.38
Just as this title says, we talk to guy who bought a business with an SBA loan! Nick Haschka is an entrepreneur and investor who lives in the San Francisco Bay Area, with his wife and two kids. He owns a small business called The Wright Gardner, which is a plantscaping business (where they help companies maintain beautiful plants around the office). He purchased The Wright Gardner along with two other folks he’s in business with using an SBA 7(a) loan. Neither Brad or I have used an SBA 7(a) loan to purchase a business so we thought it would be a great idea to invite on someone who has! And, if you haven’t already, be sure to check out our other episode on SBA loans — episode 35: “How to Buy a $2 Million Business for $200K.” Key Takeaways: [:12] About today’s interview with Nick Haschka. [1:23] Welcoming Nick to the show! [2:30] How Nick landed in the business of buying other businesses. [6:17] Why did Nick decide to go with the SBA 7(a) loan rather than using a search fund model. [7:54] How Nick found out about SBA loans. [9:44] Why Nick moved on from McKinsey and wanted to switch up his career. [10:49] Nick speaks about his (and his partners) process of buying a small business. [16:13] About The Wright Gardner, previous owner, and employees; and how Nick found it. [19:03] How long it took for Nick to lock down the deal with The Wright Gardner. [19:35] Nick shares some details and metrics of the deal. [23:30] The process of getting an SBA loan for The Wright Gardner. [25:45] Nick talks about the personal guarantees he signed for the business. [29:15] Did this one business get Nick to his $90k/year goal? [30:49] How Nick and his business partners split up the ownership and responsibilities. [31:24] Add-ons Nick was looking for to support the objectives of the business. [32:43] Have they done any tuck-in or bolt-on add-ons? [34:32] Nick talks about his business growth in the two years since he bought The Wright Gardner. [35:45] Are Nick and his partners actively looking for outside deals, or is this going to be a platform for them (where they’re going to continue to bolt-on plantscaping businesses)? [37:15] Did Nick (and his partners) fund his businesses (following The Wright Gardner) out of the cash flow of The Wright Gardner? [38:03] Is Nick at the scale where he can be less involved in the business day-to-day or is it still his full-time job? [39:04] Looking back on everything, is Nick glad he did everything the way he did? [41:55] Where to find Nick online. [42:09] Nick’s parting words of wisdom. Mentioned in this Episode: The Alternative Investor on iTunes The Wright Gardner Nick Haschka (LinkedIn) Nick’s email: nick@cubinvestments.com McKinsey & Company BizBuySell (California) Contractors State License Board For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.
43:50Should You Get an MBA? - EP.37
We often get emailed by 25-35 year olds interested in getting into private equity, venture capital, or real estate private equity, wondering if it’s worth it or not to go get an MBA. Both Brad and I have our MBAs (which serve us well) — but there are definitely pros and cons to getting an MBA. So we thought it’d be a good idea to address this question and get into all the juicy details of why you should (or should not) get it, some of the pros and cons to both of the options, and the other possible pathways you can take. We also share our own experiences in earning our MBAs and how they have benefited us in our own careers. Key Takeaways: [:12] Reading a review that made us laugh from our iTunes page. [1:28] If you give us a 5-stars and leave a funny review on iTunes we’ll read it next episode and send you a prize! [2:22] About today’s show. [4:09] Do we have our MBAs? [4:56] Some of the pros and cons of why, or why not, you should get an MBA. [9:11] How we benefited from getting our MBAs. [16:52] Some of the cons of earning our MBAs and potential cons that could arise. [19:06] When you should take the opportunity or time to get your MBA and when you shouldn’t. [20:24] How getting an MBA aided in our confidence and expectations. [21:58] A few more points on maybe why you shouldn’t get an MBA. [22:44] Should you get an MBA if you want to break into private equity or venture capital? What are the other pathways? [28:15] Summarizing our main points on whether or not you should your MBA! Mentioned in this Episode: The Alternative Investor on iTunes Master of Business Administration (MBA) For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.
29:12Investing in Alternative Assets via Retirement Accounts - EP. 36
Use a self directed IRA to make private investments for higher returns Hosted on Acast. See acast.com/privacy for more information.
17:37How to Buy a $2 Million Business for $200K - EP.35
Today’s going to be a fun episode because we’re really excited to talk about today’s topic: SBA loans. If you think you need $1 million to get started in buying a company then this episode is for you. You don’t always need to have the capital or the rich uncle — there’s another way. In this episode we’re outlining everything you need to know about SBA loans — specifically the SBA 7(a) loan — and how you can go from dreaming about owning a business to owning one worth millions, yourself. Key Takeaways: [:13] If you’ve been enjoying the show we’d really appreciate you leaving a review on our iTunes page! [1:00] About today’s show! [2:33] What an SBA loan is. [7:50] Do these loans have fixed or variable interest rates? [9:07] A few of the caveats to getting an SBA loan. [13:21] Why you may not want to go to 90% loan to value. [14:36] Another important caveat if your business depends on the location that it’s at. [16:54] Giving an example of a real business scenario using an SBA loan. [19:07] Who SBA loans are good for and who they’re not good for. Mentioned in this Episode: The Alternative Investor on iTunes SBA Loan SBA 7(a) Loan Wells Fargo Grayson@StablesPartners.com For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.
21:52To Hold or to Sell? That is the Question - EP.34
In this episode, we’ll take you below the surface for a much deeper analysis on all the variables you need to take a look at before closing the deal. Key Takeaways: [:13] You’ve been running a great piece of real estate for the last two years and then suddenly you get a fantastic unsolicited offer… so, what do you do? [1:06] Brad walks us through how he thinks about a hold vs. sell analysis. [4:23] Brad outlines some more variables to think about in the hold vs. sell analysis. [5:59] What happens if you think you can grow the asset and sell it for 3x your investment, but it takes another 3 years? [8:08] After factoring in all the risks, and still feeling 100% confident you will achieve a positive outcome, should you take the deal? What else should you take a look at? [9:47] The third piece of information that is important to factor into a hold vs. sell analysis: what can you do with the money you’ll be making? And what happens if you’ve brought in investors? [12:16] So, what do you do? Is there a right answer? [13:25] Another important thing to think about beyond the numbers. [15:48] Recapping the main points of this episode. Mentioned in this Episode: Internal Rate of Return (IRR) For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.
17:05What is a Covered Land Play? - EP.33
oday’s episode is about Covered Land Plays! A Covered Land Play is when you buy a property based on the existing use of that asset… but, what you’re really buying for is the land (in the hopes that someday it’s going to be redeveloped by you, or, perhaps the next buyer.) It has limited downside, because of the current cash flow, with big upside — so it makes for a very interesting investment strategy. In this episode, we’ll cover everything you need to do about Covered Land Plays; what they are, why you might want to use it as one of your next investment strategies, who they’re perfect for, some examples, and how to go about pursuing one. Key Takeaways: [:14] Some background on today’s episode. [:57] About today’s topic. [1:21] An overview of what a Covered Land Play is. [1:50] An example of a Covered Land Play. [2:58] Who a Covered Land Play would be particularly useful for. [4:16] If the strategy doesn’t pan out, are you at least still making a good investment? [5:23] Can you mess up this strategy? [6:18] Some of Brad’s projects that are considered Covered Land Plays. [7:02] Why all investments that involve land and a business are not considered a Covered Land Play. [9:09] An example of what a fantastic Covered Land Play investment could be. [10:49] Some more examples of potential fantastic Covered Land Play investments and some of the potential risks. [15:00] How to go about pursuing a Covered Land Play deal, and some final thoughts on the downsides and upsides! For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.
17:27Don't Be Fooled By EBITDA - EP. 32
Today we’re talking about an incredibly important topic: the dangers of mistaking EBITDA with Cash Flow. It’s so tempting when you’re looking at a lot of these small businesses to buy and you see this metric called EBITDA and you think, “Hey, this is how much cash I’m going to have distributed at the end of the year to my investors.” But looks can be deceiving. So in this episode, we want to explain to you why this is so crucial when evaluating businesses, red flags to look out for, and how to resolve this potential conflict. We also give some examples on why exactly it is so important not to mistakes EBITDA with Cash Flow and how depreciation and amortization can get you into trouble. Key Takeaways: [:46] About today’s topic. [1:36] What EBITDA is. [2:21] An example of how EBITDA comes into play when buying a small business. [4:47] Another example of why it is crucial to not mistake EBITDA with Cash Flow. [6:49] Another way depreciation and amortization can get you into trouble. [9:11] How to resolve this potential conflict: look at the Cash Flow statement! [11:18] Bottom line: be very careful when you’re evaluating a small business and you’re just looking at the EBITDA. [11:38] Particular businesses you want to be especially careful of. [12:06] What are some red flags? Mentioned in this Episode: EBITDA Cash Flow CPA PNL For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.
13:41What is a Search Fund? - EP.31
In this week’s episode, Brad and I discuss search funds! We explain what a search fund is (and who’s funding them), the four main steps, how they originally got started, who they’re great for, and why you should use one. We also talk about how my partner and I founded our firm, Stables Partners; the process of acquiring companies through search funds; and the general, broader community around search funds. We hope you join us for today’s episode! Key Takeaways: [:11] About our topic today: search funds! [:30] What is a search fund? And who is funding them? [2:58] The four steps to a search fund: fundraise, search, find, and sell. [8:30] How did search funds originally start? [9:34] Who a search fund is great for. [12:53] How my partner and I founded our firm, Stables Partners. [14:16] Why, or why not, you should have a partner. [15:55] The community around search funds. [18:15] The process of acquiring companies through search funds. [22:23] How many of my deals were off-market? [23:55] Why use a search fund? Mentioned in this Episode: Search Fund Pacific Lake Partners Trilogy Search Partners Search Fund Partners Stanford - Center for Entrepreneurial Studies - Search Funds Stables Partners Grayson@StablesPartners.com For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.
30:05How to Raise 10 Million Dollars - EP.30
In today’s episode we answer one of the questions that we probably get most frequently from people looking to break into the industry, and that is: ‘Once I’ve found the deal, how do I make it happen?’ Using the example of discovering a $10 million deal and looking at it from both the private equity side and real estate side, we take you through the steps on how to secure it, raise the necessary funds, as well as some additional tips to ensure you’re as prepared as possible! Key Takeaways: [:11] About today’s topic. [1:35] The first step you should take after finding that $10 million deal: get all your materials in order (a teaser, financial model, and a deck)! [6:15] What should be in your deck. [8:09] Documents you definitely will want to have (especially when going to people you don’t know): a PPM and subscription agreement. [12:14] How to initially raise funds to afford your deal — and the pros and cons of going to your friends and family first. [16:58] How to raise funds outside of your personal network. [28:38] Some more additional tips for securing deals. [30:48] What to expect and be prepared to answer when asking for money. Mentioned in this Episode: Upwork Private Placement Memorandum (PPM) For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com Hosted on Acast. See acast.com/privacy for more information.
35:44