The Alternative Investor

Today’s episode may not be about the happiest of topics — but it’s definitely a necessity. So today, we’re discussing all things retrade. We’re going to explain the ins and outs, give some examples, explain how we handle them, and give you some advice and key takeaways with negotiating.

At the end of the day, we hope you don’t have to have these types of conversations too often — but when you do, we want to make sure you’re well equipped going into them and have a successful outcome!

Key Takeaways:

[:11] If you like the podcast, be sure to leave us a 5-star itunes review!

[1:01] About today’s episode.

[1:20] What is a retrade?

[2:10] Brad gives an example of a retrade conversation he has had recently.

[6:06] I give an example of a retrade in the private equity world.

[9:58] Brad gives us his general strategy, and how he typically handles a retrade.

[14:55] My strategy for handling a retrade, and some of our other tips and tricks.

[17:05] Some of the differences between retradring in private equity, and real estate.

[18:04] Some more retrade strategies.

[18:45] Reflecting back on old retrade deals, and our final pieces of advice.

For More on The Alternative Investor, Check Out:

TheAlternativeInvestorShow.com

Hosted on Acast. See acast.com/privacy for more information.

When I was on the other side of private equity (i.e. operating businesses), I always thought those in investing were out there counting money, doing deals, and going home at 4 p.m. … but now that I’m doing deals, I realize the reality is a lot different.

So in today’s episode, Brad and I are talking about some of the surprising and counterintuitive aspects of being in private equity and real estate private equity. There’s some misconceptions out there about how “unsexy” it can really be. 

First Brad kicks it off by telling us about some of the surprising things he has learned (having run his own real estate private equity fund), and then we take a look into the surprising aspects I've discovered working in private equity. We also discuss how much art tends to go into making deals versus science and how learning how to make these deals is kind of like building up a muscle!

Key Takeaways:

[:11] About today’s episode: surprising aspects of private equity.

[:52] Brad talks about some of the surprising (or counterintuitive) sides of private equity in real estate for him.

[7:37] Brad’s advice on if you’re looking to get into private equity, and how long it took for him to get his first deal in the industry.

[8:45] Brad gives some more surprising aspects of private equity.

[11:38] One of the surprising aspects I’ve discovered while working in private equity: how much art goes into it versus science.

[12:40] Brad explains how, similarly, “art” plays into real estate.

[14:05] How looking at deals is like building a muscle.

[18:33] Our last surprising aspect of private equity: taxes and regulatory aspects.

[23:49] How the private principal applies to real estate private equity.

For More on The Alternative Investor, Check Out:

TheAlternativeInvestorShow.com

Hosted on Acast. See acast.com/privacy for more information.

In today’s episode we thought it would be fun if we did something a little bit different! We want to share with you some of our favorite tools that we use in our jobs everyday — from software and technology, to resources and newsletters.

A lot of these tools can be used in many different industries and we hope we can help streamline some of what you do everyday by sharing a few of our most-used tools and giving you the inside deets on how much they cost per month, our favorite attributes and features about each one, and how we utilize them within our business.

Key Takeaways:

[:11] About today’s episode: our favorite everyday tools.

[:33] A quick refresher on what it is that we do day-to-day.

[1:33] Brad kicks it off with the most important software he uses in his day job.

[3:00] Brad’s favorite software, tools, tips, and tricks that uses in real estate.

[18:54] My favorite software and tools that I use in private equity.

Mentioned in this Episode:

Rent Manager

Juniper Square

Dropbox

Google Earth

Microsoft Excel

Squarespace

Upwork

Fiverr

Mailchimp

Bond

Magic

Grasshopper

Burner

Unbounce

Salesforce

Reply.io

LinkedIn Sales Navigator

Clearbit

G Suite

Google Sheets

Crunchbase

Axios Newsletter

Stratechery Newsletter

For More on The Alternative Investor, Check Out:

TheAlternativeInvestorShow.com

Hosted on Acast. See acast.com/privacy for more information.

Today’s show is going to be all about asset prices and what we’ve been seeing lately. Don’t lose hope — it’s not all bad! Things may seem expensive right now (and are expensive!) but there are some things you can do to to ensure you’re investing in worthwhile assets! 

In this episode, Brad and I go over what we’re seeing right now in terms of pricing in both the real estate and private equity side of things, how sometimes a deal may look really expensive when it is actually an incredible deal, and some of the “tricks” to figuring out what makes a worthwhile asset vs. one that is not worth your time.

Key Takeaways:

[1:01] About today’s show!

[1:17] What Brad is seeing right now in terms of pricing in real estate.

[4:46] Remember when Facebook bought Instagram? Seems like they overpaid, until you look back on the deal.

[6:03] Why the Instagram/Facebook deal worked out and how to do the same for yourself.

[7:13] Taking a quick look at the private equity side.

[7:42] The “tricks” to figuring out the worthwhile assets vs. the not worthwhile.

For More on The Alternative Investor, Check Out:

TheAlternativeInvestorShow.com

What Exactly is Adjusted EBITDA? - EP. 21

EBITDA

Fred Wilson

Eddie Lampert’s Plan to Save Sears

Hosted on Acast. See acast.com/privacy for more information.

In today’s episode we’re talking all about qualified opportunity zones — these things are amazing. They’re portions of the country that are economically disadvantaged, and if you invest in those areas you get incredibly favorable tax treatment.

First, we take you through the history of qualified opportunity zones (which has a pretty interesting history in itself!) — then we get to the really exciting part: the incredible tax breaks to be had by investing in these zones and how to go about it. And then, to wrap it all up with a bow, we take you through a real world example to illustrate how it’s done.

Key Takeaways:

[:12] All about today’s episode!

[:55] The history of qualified opportunity zones and how they came about.

[3:31] What an opportunity fund is.

[5:42] What a qualified opportunity zone is.

[7:35] The exciting stuff: the tax benefits from investing in a qualified opportunity zone via an opportunity fund.

[11:51] A quick recap on all the amazing tax benefits.

[12:24] Brad takes us through a real world example.

[16:48] Our final warnings on qualified opportunity zones: make sure it is still a good deal — a bad investment with a good tax treatment is still a bad investment.

[18:57] One last thing you need to remember: you do have to do this through a qualified opportunity fund.

[19:56] Does this all make sense in the private equity world?

[20:41] A final note about qualified opportunity zones on the real estate side.

For More on The Alternative Investor, Check Out:

TheAlternativeInvestorShow.com

Hosted on Acast. See acast.com/privacy for more information.

In this episode, Brad takes us through some of the different types of real estate asset classes and gives us the pros and the cons of each! He also gives us some ideas on what we should think about when investing in each of the types, why some people choose to invest in them (or not), and the risks vs. the rewards. 

From multi-family real estate investing and affordable housing to office buildings, industrial, retail, and hotels — Brad gives us the insider scoop and breaks down what we all need to know about investing in these different types of real estate.

Key Takeaways:

[:30] If you want to get in touch with us or have any suggestions for the show, you can always email us at [email protected] and [email protected].

[1:13] About today’s topic: the different types of real estate asset classes.

[1:57] Brad explains the basics of multi-family real estate investing.

[4:54] Do student housing and affordable housing fall under multi-family?

[6:21] Pros and cons of affordable housing.

[8:36] The difference types of niches in office buildings.

[9:31] The pros and cons with office buildings.

[13:29] Brad explains the industrial asset class.

[16:09] Risk vs. reward for warehouses compared to office and multi-family.

[17:10] Brad breaks down the different types of retail facilities.

[19:22] The pros and cons of retail real estate.

[21:46] Is retail similar to office as in their risks vs. reward?

[22:05] About investing in hotels and the risks involved.

[24:34] Brad reviews some niche asset classes: manufacturing housing, data centers, cell towers, casinos, single family rentals, and medical.

Mentioned in this Episode:

[email protected]

[email protected]

For More on The Alternative Investor, Check Out:

TheAlternativeInvestorShow.com

Hosted on Acast. See acast.com/privacy for more information.

Today we’re talking about how to source off-market deals!

It’s easy enough to go on LoopNet or MLS Deal Finder but anybody can get those deals, so we want to share some solid trade secrets with you all today and help you find those sweet, sweet off-market deals.

In a prior episode, we’ve gone into the differences between off-market and on-market deals, but today we want you to join us to get right into the nitty-gritty of how you can actually find these off-market deals.

Key Takeaways:

[:12] Our topic today: how to source off-market deals.

[:26] What we mean by how to source an off-market deal.

[1:06] What is an off-market deal?

[2:39] Brad talks about how to find off-market deals in a real estate firm.

[14:10] How to find off-market deals on the private equity side.

[21:10] Concluding this week’s episode and where to find more resources!

Mentioned in this Episode:

LoopNet

MLS Deal Finder

First American Title

LinkedIn

Broker Deals VS. Off-Market Deals - EP. 11

For More on The Alternative Investor, Check Out:

TheAlternativeInvestorShow.com

Hosted on Acast. See acast.com/privacy for more information.

Just in case you were wondering if you have what it takes to be an alternative investor, today we thought we’d share with you all of the things — the behaviours, the attitudes, and the skills — that go into sourcing and doing diligence on closing a deal!

There’s a lot of aspects that go into shaping an excellent alternative investor — from qualitative to quantitative skills. You need to be an expert generalist, while also having strong project management skills, lots of optimism, and most importantly: be able to make STUFF happen. In this episode we cover the three major buckets of the skills you need to have, as well as the three specific parts of what goes into making a deal, such as sourcing, diligence, and the closing process. Tune in!

Key Takeaways:

[:11] About our topic today: 

[:55] The first of the three big buckets that fill the skills of what an alternative investor needs to be: an ‘expert generalist.’

[2:46] The second: being a ‘professional cat herder.’

[4:38] Our third bucket: make ‘stuff’ happen.

[5:54] The three specific parts of what goes into doing a deal: sourcing (find the deal), diligence (analysis and doing the work), and the closing process (getting the deal over the finish line).

[6:24] Firstly: the skills, behaviours, and attitudes that go into sourcing a deal.

[8:38] Secondly: the diligence side and its related skills, behaviours, and attitudes.

[13:06] Thirdly: the skills involved in getting the deal closed!

For More on The Alternative Investor, Check Out:

TheAlternativeInvestorShow.com

Hosted on Acast. See acast.com/privacy for more information.

Today we’re going to talk about Adjusted EBITDA — or in Brad’s world, Adjusted NOI; Net Operating Income. So what is it? First off, it depends who the player is. Are they legit? 

It’s a super critical number and important to get right — so tune in for today’s short and sweet episode all about Adjusted EBITDA!

Key Takeaways:

[:13] About our topic today: Adjusted EBITDA!

[:22] What is Adjusted EBITDA?

[2:42] A simple example of Adjusted EBITDA.

[3:32] Non-valid Adjustments in the real estate world to Net Operating Income (NOI).

[5:23] Valid Adjustments Brad has seen in the real estate world.

[9:35] A couple examples of valid Adjustments we see in the private equity world.

[13:00] Wrapping up today’s episode!

For More on The Alternative Investor, Check Out:

TheAlternativeInvestorShow.com

Hosted on Acast. See acast.com/privacy for more information.

Today on The Alternative Investor we have our first guest on the show: Brent Beshore! Brent is the CEO and founder of Adventur.es — a private equity firm in Columbia, Missouri. Adventur.es has a unique investment approach: they seek boring businesses. They explain this perfectly themselves: 

“Boring businesses endure because they consistently solve a meaningful problem and were patiently built over decades,” “Truth be told, our responsibility is not just to seek and sustain boring businesses, but to be boring ourselves. Boring is reliable, faithful, and predictable. Boring is sustainable. We are committed to doing what we say we would, when we said we’d do it.”

This episode, Brent, Brad, and I discuss the workings of Brent’s firm, how they go about securing deals, their due diligence process, what deals they look for, and how he deals with a variety of situations within the firm. He also gives his views on growth, what industries he won’t touch, and what he thinks about current asset pricing.

Adventur.es has some pretty contrary views and approaches to traditional private equity firms so it was an extremely interesting interview that we recommend you all tune in to this week!

Key Takeaways:

[:10] Our guest, Brent Beshore, introduces himself and tells us a little about his background and how he got to where he is today.

[2:28] How Brent started up his private equity firm, Adventur.es, and what they’re all about.

[8:09] About the makeup of Aventur.es’ portfolio: what kind of companies they currently have, what they like, and what they’re looking for.

[11:05] How did Adventur.es get comfortable with some of the more cyclical deals (especially with the pool companies).

[14:14] Does Brent believe that volatility does not equate to risk?

[17:11] How do they have the liberty with their fund where they can hold a deal indefinitely?

[18:58] Are they reinvesting dividends each year?

[19:55] Do they have discretion?

[20:16] Does Brent find that the sellers they buy deals from generally involve competitive bidding?

[24:40] How Brent keeps a sense of urgency in their operation (without the pressure of the 3-5 year time frame a traditional private equity firm generally has with businesses).

[27:37] In most cases, is Brent dealing with the CEO who’s selling the business with a management team stepping up or is he hiring other operators to come in?

[29:21] When the owner is not staying around, and a new management team is stepping up how does Brent keep those people incentivized?

[31:05] Brent’s process of finding deals.

[34:30] If a broker sent Brent a deal he would normally want to buy, but it’s part of a bigger process with multiple firms bidding on it, does he step out?

[37:52] Brent gives us a back-of-the-envelope approach to how he thinks about what is an attractive business for Adventur.es.

[42:31] How Brent thinks about due diligence and the major things that kill a deal.

[46:53] In their due diligence process, how much time is spent within the company internally and how much is spent thinking about the market and external factors?

[50:31] About Brent’s meeting with Warren Buffett.

[52:04] What kind of multiples is Brent seeing in business right now? And how does he think about what’s the best multiple to pick?

[55:11] How much is too much customer concentration?

[57:05] How much does Brent care about growth? 

[58:24] Are there any industries Brent wouldn’t touch?

[59:48] How does Brent think about current asset pricing?

[1:03:22] Where to find more of Brent’s content and Adventur.es online.

Mentioned in this Episode:

Adventur.es

Brent Beshore’s LinkedIn

The Oracle of Omaha

For More on The Alternative Investor, Check Out:

TheAlternativeInvestorShow.com

Hosted on Acast. See acast.com/privacy for more information.