032: Investment Grade Deals and Speculative Opportunities

We specialize in providing flexible short-term hard money and transactional loans for real estate projects. We also invest in equity of strong real estate projects with proper leverage and strong sponsors.

032: Investment Grade Deals and Speculative Opportunities

 

Today’s episode is a joint presentation and episode of Dentist Freedom Blueprint Podcast and Big Mike Fund Podcast. Dr. David Phelps and I discuss a collaboration we have between the Tempo Fund Management Group and the Freedom Founders mastermind.

I share my presentation about alternative deals and speculative deals. We hope to educate you on the pros and cons of investment grade deals and speculative opportunities. It is also important to work with a group like David’s Freedom Founders to weed out the bad deals and limit the risk in a deal. Of course, we want you to steer toward investment grade deals but there are good speculative deals and you need to know how to recognize the difference.

There is a lot of good information in this episode and David is a great presentation partner. So, please join us for this Big Mike Fund Podcast and Dentist Freedom Blueprint Podcast.

MINUTES MARKERS

00:00 — Introduction to the Big Mike Fund Podcast.

00:22 — Welcome to the Big Mike Fund Podcast.

00:27 — Welcome to the Dentist Freedom Blueprint Podcast.

00:42 — Our joint episode about due diligence and deal selection.

01:40 — Our current collaboration and how we met.

04:55 — How to leverage others’ specialties and expertise.

06:22 — What are alternative investments?

07:00 — A brief overview of today’s episode.

08:35 — The beginning of my presentation.

09:16 — The difference between investment grade deals and speculative deals.

10:56 — Who is Dr. David Phelps?

11:40 — The beginnings of the Freedom Founder mastermind.

12:10 — A little about me.

14:07 — David’s book and how to get it.

15:12 — Pros and cons of investing in syndicated real estate.

21:26 — Pros and cons of individual deals and funds.

23:24 — The difference between a syndication deal and a fund.

24:41– Investing vs. Speculating

28:44 — The 4 Deal Quadrants.

35:30 — What does downside protection mean?

38:51 — Downside Protection vs. Wall Street

39:25 — All projects have risks.

40:30 — Typical risk adjustment based on the Deal Quadrants.

45:55 — The role of the market in deal risk.

48:11 — Backend appreciation in a deal and the cash flow.

49:23 — The mixed results of investment grade growth focused deals.

50:43 — An overview of the speculative sector and cash flow expectations.

52:35 — The ways cash flow works in syndicated deals.

01:02:00 — A brief explanation of underwriting and what to consider.

01:03:26 — How to install controls into a deal.

01:07:55 — How to recognize a fair deal.

01:17:10 — Examples of bad deals I’ve seen.

01:20:28 — A recap of today’s topic.

01:21:14 — Freedom Founders and David’s book.

01:21:37 — My contact information.

01:22:09 — Thank you for joining us for this episode and presentations.

01:23:03 — Outro to the Big Mike Fund Podcast.

RESOURCES

Big Mike Fund

Real Estate Investment Fund: How to Choose a SMART Real Estate Investing Fund: Top 10 Biggest Mistakes To Avoid Before Investing Into a Real Estate Fund (Private Money, REITS, Equity, Structure, Tax) by Mike Zlotnik

Tempo Funding Management Group

Freedom Founders

From High Income to High Net Worth for Dentists by Dr. David Phelps

Apply for an Invitation to the Freedom Founder community

Dentist Freedom Blueprint Podcast