Investing and Partnership Opportunities

Investment Philosophy

There are 4 basic sources of investment portfolio outperformance:

  1. Timing – Purchasing an asset before its market value goes up in value (or shorting something before its market value goes down in value)
  2. Allocation – Overweighting asset classes that are undervalued and underweighting asset classes that are overvalued
  3. Selection – Selecting the assets within an asset class that are poised for the highest forward returns (or shorting the assets that are poised for decreases in value)
  4. PRICING – BUYING SOMETHING FOR LESS THAN ITS CURRENT MARKET VALUE (or selling something for more than its current market value)

Consistently doing numbers 1, 2 or 3 (above) is nearly impossible and anyone who says they can accomplish any of these should be thoroughly scrutinized before being trusted! Even if an investment manager has a track record that demonstrates the ability to capitalize on numbers 1, 2 or 3, past performance is no guarantee of future returns (it is often, however, a guarantee of higher fees). Case in point: click here.

I believe achieving number 4 (above) is much easier to accomplish and it can be done with greater certainty and consistency especially in illiquid markets. In illiquid markets, there are often disconnects between transaction prices and market prices. Emotions and non-economic objectives lead people to transact at prices that may not reflect market value.

Why Invest in Land?

There are many asset classes where purchases can be made below current market value. In my experience the spreads available in real estate and land, in particular, are often among the largest. It is possible to consistently buy land for 10%-40% of its market value. It is also possible to sell land for prices well above market value when owner financing is offered.

Why Partner?

The main trade-offs to having the ability to purchase land at such large spreads below current market value are that land values can be highly volatile and land can be extremely illiquid (time to sell is often measured in months and in some cases years not seconds, minutes or days). There are other risks too including, but not limited to local economic exposure, changes in the path of urban development, natural disasters, zoning/land use changes, HOA rule changes, etc. Thus it is important to understand or partner with someone who understands these risks and to mitigate them when possible.

For those who have experience in real estate ownership/investing, it may be difficult to regularly source attractive opportunities, effectively evaluate opportunities, scientifically consider all of the factors and risks involved with purchasing and selling the property, market the property to the right audiences, provide potential buyers with a professional shopping experience, etc. Having more hands and eyes involved in the process can often result in better returns with less overall effort.

If you would like to Partner with me…

The first step is to establish contact and confirm that we have compatible goals. The next step is to evaluate deals that might make sense to partner on and to establish the parameters of the deal and the partnership. The final step is to go in together on the selected deal and manage it with the the partnership’s goals in mind.

If you are interested in partnering on a deal, please provide your name and email address below and describe any real estate experience you have.

About Me:
I have spent my career in finance and real estate. I am currently the owner of Deed Ventures LLC, a real estate investment company founded in 2016. Prior to starting Deed Ventures LLC, I helped to build the multibillion dollar real estate/private equity business at PIMCO – working on marketing, reporting, operations and negotiating financing deals. Before working at PIMCO I built risk and asset allocation models at Harvard’s Endowment. Throughout my career, I have been integrally involved in many real estate and financing deals totaling billions of dollars.

Education:
Harvard Business School: MBA
Brigham Young University: BS – Managment