Podcast #90 – Fundamentals – Scaling up through raising money with Victor Menasce

2010 – Moved from Tech job

Quickly scaled up his business and ran out of money

Infill = urban setting

greenfield = land up

Started with JVs by small residential projects and expanded to apartments

It’s not about the deal… It’s about the team

Someone told him to focus on raising money

Fundraise or Deal Operator

MFH is resilient to cycles but most of the larger projects have too many offers on one property… You don’t want to be the winning offer

Use interest rate reserve as another line item in the budget

Demand for class A is not there for what is built

Find where the line is in a city and move the line

Don’t ask about a general city, ask about a few block radius

Student housing – look at the local market for overbuilt from university (look at bedroom alignments)

Unclear about military housing near bases which is like having one employer

Tax abatements offered on government stimulus for possibly 10 years

Non-resident owner might not be eligible for FEMA assistance

SFH property has all your cash in the deal

2008 was a banking crisis, not a real estate crisis

Does not have paper assets because his old CEO lied to the public and realized that the small investor has no control