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
