Being a translator
I was inspired listening to Outlive audible book.
The writer said that he wants to be the translator to translate these medical findings to the audience.
It’s so important, I think, the job of the translator.
In the world of fund managers, we are the translators of the investing world. We can talk to everyday people by their language but we also speak “investing” since we’re deep in it and know how deals work.
Most common real estate investors do not know how syndication works. There are just about 20,000 syndicators in the US. It’s such a small number of people who are doing all of these “blue sky filings”.
A year ago, I did not even speak this language at all.
Normal people just understand stocks, means buying shares in these public companies.
Imagine if they’re not on the stock market yet, but you can still invest in them, buy their shares, then it means you own some private equity in these businesses.
Syndication is to invest in these shares of the real estate business’ private equity.
It’s investing in businesses.
These businesses own and operate apartments (real estate) to collect rent.
With each apartment deal, we invest in each individual deal of the real estate business.
The business model is so easy to understand, it worked for the past thousands of years and will work for the next thousands of year.
But the make or break thing about a business is the operator of that business.
That’s why whenever I look at a deal, it’s so important to me to look at: who is running this business? what’s their philosophy on how to make money out of this? have they done things like this before? what have been done and what was the results of past deals?
If all of those questions answered then I look at the deal to see whether I am comfortable with the deal details and underwriting.
At the end of the day, my job for the next 10 years is to curate the alphas among operators and put my money and my investors money into their businesses.
One of our big partners recently did a webinar that every investor should watch, it’s in the below link:
If you think I can bring some clarity by translating some of the things I know to you, reach out, I love the job of being a translator!
