How Do You Pick an Investment Theme? – EP.17


How to Narrow Down and Choose an Investment Theme That Best Resonates With You

In today’s episode, we address a recent listener’s question on how to identify or pick out an investment theme. We think of investment themes as something that can help you narrow down (what seems like) an infinite list of opportunities into something more manageable and actionable.

Not only does a theme help narrow down your own list of investment opportunities — it helps differentiate you in the minds of brokers and bankers when they see deals. A theme can be an asset class, a business model, a trend, or macro trend that’s occurring in the economy.

Today we go through just some of those ways you can pick a theme to help you stand out in a sea of investors.

Key Takeaways:

[:11] Today we answer a listener question from someone who asks, “How do I identify an investment theme?”

[:52] How we think of an investment theme and why they can be so beneficial.

[5:29] Why you won’t be taken seriously if you don’t narrow your criteria.

[7:31] How to pick a theme that resonates with you.

[11:33] When you think about a theme, think about the macro trends in the world.

[13:00] How to do multiple deals within real estate while having an overarching theme to your investments.

[18:19] Summarizing our key points.

How To Think About Risk – EP. 16


Risk is an often misunderstood and poorly communicated concept. This episode covers how we think about and evaluate risk factors in real estate and private equity investments.

Risk is going to be a part of every single investment decision that is ever made and there’s no such thing as a risk-free investment. So hopefully, in this episode, we can provide some tools and a framework to help you think about risk and overcome any hesitance you may have. Brad and I discuss risk from the academics’ perspective, real estate, and private equity side; as well as risk deal killers, and general risks that factor into any investment.

Key Takeaways:

[:10] About our topic of discussion today.

[1:51] How the academics think about and talk about risk.

[9:43] How we think about risk (in real estate and private equity.)

[12:26] How Brad looks at to evaluate real estate risk.

[14:42] More factors that go into risk analysis in real estate.

[17:28] Are there any risk deal killers? What risks would kill the deal?

[20:51] How I think about risk in private equity.

Mentioned in this Episode:

The University of Chicago

Modern Portfolio Theory (by Harry Markowitz)

University of California San Diego

Standard Deviation 


Due Diligence

Base Case

Downside Risk

Market Risk

What Price to Pay For An Investment? – EP.15


Today we’re going to talk about how to figure out how much to pay for an asset. When you’re buying an asset, price is the most important variable you’ll be looking at — probably not the only variable — but definitely the most important!

Arguably, you should be spending 90% of your time answering the question: what is this asset worth? So today Brad and I cover — from real estate to private equity — how to know how much to pay and which factors you should consider.

Listen in to learn how to appropriately price assets!

Key Takeaways:

[:13] Our topic of discussion today: how much to pay for an asset.

[1:52] Brad walks us through how much to pay for an asset in the real estate world.

[4:58] A real estate example for figuring out how much to pay for an office property.

[9:03] How the exit price factors in to how much you’ll pay.

[11:17] How much to pay for an asset in the private equity world.

[15:04] Summarizing our key takeaways.

Mentioned in this Episode:


Cap rate

Unlevered vs levered

Warren Buffett

What is an Accredited Investor? – EP. 14


Today we’re talking about accredited investors. To become an accredited investor you have to meet the SCC’s income and net worth requirements (such as needing to have $200k of income in the last 2 years if you’re single, $300k if you’re married, or $1 million in net worth not including your home.)

So why would you want to become an accredited investor? Or how? And if you became an accredited investor, what opportunities open up to you? How do you verify that you’re accredited? Brad and I answer all these questions this episode — as well as giving you an update on the latest changes the government has made in regards to accredited investors!

Key Takeaways:

[:12] About our topic today: accredited investors.

[:26] Brad’s experience dealing with accredited investors.

[4:02] What is an accredited investor?

[8:15] Why does it matter that you’re an accredited investor? What opens up to you?

[10:42] How to become an accredited investor.

[12:20] All the ways to verify that you’re accredited.

[14:57] The latest update on what the government thinks about accredited investors.

Mentioned in this Episode:


The Carlyle Group


Jor Law at Verify Investor (Linkedin)

Verify Investor

Financial Industry Regulatory Authority (FINRA)

What is Preferred Equity? – EP. 13


What Preferred Equity is, How It Differs from Common Equity, and Why It is Used


Today’s episode is all about preferred equity — so we’re going to try and keep it light and fun.

Firstly, we talk about what equity is and how preferred equity differs from it — then, we get into common reasons for using preferred equity in a real estate or private equity deal. We also give some examples of the differences between it and common equity and explain why, more and more, we’re seeing preferred equity in deals.

Preferred equity may not be sexy — but it can be sexy when the payments are coming to you.

Key Takeaways:

[:13] About our topic today: preferred equity.

[:55] What is equity?

[1:40] The two types of capital: debt and equity.

[2:29] An example of common equity in a real estate project.

[3:49] What is preferred equity?

[4:30] An example of preferred equity in a real estate project.

[6:42] Why do we typically see preferred equity in deals?

[8:00] Another reason for preferred equity.

[9:16] Expect to see preferred equity in your future deals and do more research on the topic!

Mentioned in this Episode:

Capital Stack

Preferred Equity