Success isn’t just about accumulating wealth. It’s about building a life with flexibility, purpose, and optionality.

I’m Dr. Dylan Reach, founder of Expedition Equity, a private investment firm focused on helping professionals build long-term wealth through private markets.

My background as an optometrist and business owner shaped how I think about investing. In medicine and business alike, discipline matters, incentives matter, and long-term thinking consistently outperforms short-term speculation.

After acquiring and scaling multiple businesses, I began allocating capital into private real estate and alternative investments. What started with a single property evolved into a diversified portfolio spanning real estate, private equity, and income-producing assets across multiple strategies.

At Expedition Equity, we focus on:

Capital preservation first

Cash flow where appropriate

Thoughtful growth over full market cycles

Most of the people I work with are busy professionals — physicians, business owners, and executives — who want their capital working efficiently without making investing a second job.

I use this platform to share perspectives on private markets, capital allocation, and building wealth in a way that supports an intentional life — not one that consumes it.

I live in Woodstock, Georgia with my wife and four children. Family, health, and giving back are central to how I define success, both personally and professionally.

https://www.ExpeditionEquity.com

Dylan Reach

Marinas are one of the most overlooked real asset classes.

Waterfront land is finite.
Permitting is restrictive.
Demand is growing.

And revenue is diversified:
		🚤 Slips
		🚤 Fuel
		🚤 Storage
		🚤 Maintenance

Scarcity plus recurring income is a powerful combination.

Private Market Investor | Long-Term Capital Allocation | Founder, Expedition Equity | Optometrist

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I have a strong view on affordable housing investing:
If the strategy relies on forcing people out, it is not impact. It is extraction.

The most sustainable returns come from:
	• Operational improvements
	• Better management
	• Lower expenses through efficiency
	• Reduced vacancy through resident retention
	• Long term financing and thoughtful upgrades

Stability for residents often creates stability for investors.

That is what alignment looks like.

Some people do not think about self storage as an investment.
Until they notice how often they use it.

-- Moving between homes.
-- Downsizing.
-- Starting a business.
-- College students between semesters.
-- Contractors storing equipment.

Life creates storage demand.

That is what makes self storage such an interesting asset class.

It quietly sits at the intersection of several major trends:
	Population mobility
	Smaller living spaces
	Growth in small businesses
	E-commerce inventory needs

Unlike many real estate sectors, self storage typically has:
Short term leases
Flexible pricing
Low operational complexity

Operators can adjust rents quickly as demand changes, which provides resilience across different economic environments.

The result is an asset class built around everyday behavior.

People accumulate things.

Businesses accumulate equipment and inventory.

Life changes create temporary storage needs.

And when demand is constant, well located facilities tend to perform consistently.

Sometimes the best investments are not the ones making headlines.
They are the ones quietly solving everyday problems.

Think of liquidity like packing for a trip.

The things you will need during the flight go in your carry on.
Easy access. No hassle.

The things you will not need until you arrive can go in the checked bag.
Investing works the same way.

Some capital should stay liquid and accessible. That is your carry on.

Other capital can be allocated to opportunities that take longer to access.
Private investments are often the “checked bag” money.

They are not meant for immediate access, but in exchange investors may gain access to better pricing, stronger terms, and opportunities that do not show up in public markets.

The mistake is not investing in illiquid assets.

The mistake is putting money you might need soon into investments designed for the long term.

Cash value life insurance works best when paired with growth-oriented assets.

While private real estate, business ownership, or private credit focus on returns, cash value provides liquidity, stability, and tax efficiency.

Together, they reduce pressure and improve flexibility.

If you are curious how this pairing works in practice, I am happy to explain.

If you are investing for growth but not thinking about tax mitigation, you may be leaving a lot on the table.

One strategy many investors overlook is properly structured cash value life insurance.

For the right person, it can provide:
	• Tax deferred growth
	• Tax advantaged access to liquidity
	• Portfolio flexibility outside of market volatility
	• Estate and asset protection benefits

This is not about replacing traditional investments. It is about adding another tool for long term wealth planning.

The key is structure:
overfunded, designed for cash accumulation,
and coordinated with your broader tax strategy.

Have you explored where cash value life insurance fits into your capital stack?

A 1031 exchange does not have to mean buying another property and becoming a landlord again.

Many investors are using exchanges to move from active to passive.

➡️ Same tax deferral.
➡️ Less management.
➡️ More focus on portfolio design.

Sometimes the best upgrade is getting your time back.

Are you ready to switch from active management to passive investing? Let's discuss the options before you exchange another property for more of your time.

Most investors have a stock portfolio.

Very few have a private portfolio.

A private portfolio is built differently:
     • Income first
     • Real assets for durability
     • Growth through business ownership
     • Tax efficiency through structure

Public markets are liquid. Private markets are intentional.

The goal is not complexity.
It is control.

If you want to explore private markets and diversifying your portfolio, reach out to schedule a call.

Some of the most compelling investment opportunities are not startups.
They are businesses that already work.

Profitable companies with loyal customers.

Owners who built something meaningful over decades.

Strong local reputations and steady cash flow.

The challenge is that many of these owners are reaching retirement, and the next chapter for their business is not always clear.

That is where investment capital can play a powerful role.

By acquiring strong businesses and pairing them with experienced operators, investors can focus on improving systems, expanding operations, and unlocking growth that the original owner may not have had the time or resources to pursue.

The goal is not to reinvent the business.

It is to take something good and make it even better.

Sometimes the best investments are not about discovering something new.

They are about recognizing value that is already there.

When investors say they want “cash flow,” what they usually mean is predictable, repeatable distributions.

Our Income Fund is built around short-duration small business financing.

Capital is typically deployed for 6 to 12 months.

Businesses repay daily or weekly via automatic debit.

Target payback multiples range from 1.2x to 1.4x.

This structure creates something many portfolios lack: speed.

Approximately 14 to 15 percent of deployed capital returns monthly. That means the portfolio can be repositioned within 6 to 7 months if needed.

No leverage.
No capital calls.
No single asset concentration.

Short duration plus diversification is a powerful combination in uncertain markets.

If you want consistent income, look past the headline return and ask:
	What keeps the checks coming when life gets messy?

I look for:
	- Multiple layers of demand, not one customer type
	- Professional operations, not hero management
	- Reserves for surprises, not optimism
	- Financing that can survive higher rates
	- A plan for vacancies, maintenance, and downturns

Cash flow is a strategy.

But risk management is the product.

For years, investors chased growth.

Now many are rediscovering income.

Private credit offers:
𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝘂𝗮𝗹 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄
S𝗵𝗼𝗿𝘁𝗲𝗿 𝗱𝘂𝗿𝗮𝘁𝗶𝗼𝗻
L𝗲𝘀𝘀 𝗰𝗼𝗿𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻 𝘁𝗼 𝗽𝘂𝗯𝗹𝗶𝗰 𝗺𝗮𝗿𝗸𝗲𝘁𝘀

In uncertain environments, income becomes the anchor.

A strategy we think about often:

	One side: stable income and downside protection.
	The other: long term growth and asymmetric upside.

Not everything should be aggressive.

Not everything should be conservative.

Balance is the edge.

When I first started thinking seriously about investing, it was not about charts, returns, or financial strategies.

It was about time.

I remember realizing that most of us are taught to trade our time for money.

Work the hours. Earn the paycheck. Repeat next week. Repeat next year.

There is nothing wrong with hard work. In fact, it is where most wealth journeys begin.

But at some point a question shows up:

What happens when you want your time back?

That is where investing changes the conversation.

Every dollar invested is a small worker you hire.

One that can go out and produce income without needing your hours attached to it.

At first the impact feels small.

A little income here. A small distribution there.

But over time something powerful starts to happen.

Those investments begin funding things your job used to fund.
Family trips.
Flexibility in your schedule.
Opportunities you would have once had to say no to.

Eventually the goal shifts again.

It is no longer just about buying back your own time.

It becomes about creating a foundation your family can build on.
Investing becomes legacy.
Assets that produce income.
Businesses that continue operating.
Real estate that increases in value.

You start thinking not just about the next year, but the next generation.

Wealth is not built overnight. It is built decision by decision, investment by investment.

But the most meaningful part is not the numbers.
It is the freedom those numbers create for the people you care about most.

That is when investing stops being about money.

And starts being about life.

Some of the strongest returns in private markets come from backing operators, not tickers.

Entrepreneur funds focus on acquiring and scaling real businesses, often in essential industries.

These are companies with customers, cash flow, and leadership teams already in place.

What makes them compelling is not speculation. It is execution.

Entrepreneur funds can provide:
	&gt; Cash flow as businesses mature
	&gt; Equity growth through operational improvement
	&gt; Asymmetric upside through consolidation and scale

In a balanced portfolio, these funds often sit in the growth and upside bucket.

They complement income-producing assets and add exposure to value creation that public markets cannot replicate.

You are not betting on headlines.
You are partnering with people building real businesses.

Tax mitigation is not just for the ultra wealthy.

It is for anyone serious about compounding.

Real estate depreciation.
Oil and gas deductions.
Business ownership credits.

These are incentives built into the system.

Less tax drag means more capital staying invested.

That is how wealth compounds faster.

A few years ago I drove through the middle of the country and stopped in a town most people would never notice from the highway.

It looked quiet at first. A few warehouses, rail lines running along the edge of town, trucks moving in and out of loading bays. Nothing flashy.

But when you start paying attention, you realize places like this are the backbone of the economy.

Inside those buildings were distributors moving parts to manufacturers. Food suppliers shipping to grocery chains. Equipment suppliers sending materials to construction crews hundreds of miles away.

That one industrial corridor quietly connected farmers, factories, retailers, and consumers across multiple states.

This is why centrally located industrial development can be such a powerful investment.

When a warehouse sits in the middle of a major transportation network, it becomes more than just a building. It becomes infrastructure.

Products move faster. Shipping costs drop. Supply chains become more reliable. Local jobs are created. Small businesses gain access to national markets.

And because the demand for logistics space continues to grow while supply in key corridors remains limited, these assets tend to benefit from durable long term fundamentals.

Industrial development is not always exciting to look at.

But it plays a critical role in keeping the American economy moving.

Sometimes the best investments are not the ones everyone is talking about.

They are the ones quietly serving the country every single day.

When people hear “growth investing,” they often think about startups and new technology.

But one of the most durable growth strategies looks very different.

Buying profitable small businesses.

Across the country there are thousands of companies with real revenue, real customers, and proven business models.

With the right capital and leadership, these businesses can grow significantly through:
• Operational improvements
• Better systems and management
• Strategic acquisitions
• Expanded markets or services

Investors are not betting on an idea.

They are investing in businesses that already generate cash flow and then helping them scale.

In many ways, it is one of the most straightforward paths to value creation in private markets.

✔️ Find a great business.
✔️ Add the right operators.
✔️ Make it better.

Liquidity is one of the most misunderstood concepts in investing.

Many investors focus on how quickly they can sell an asset rather than how their portfolio generates cash flow.

Income funds like Kudo are designed to provide ongoing monthly distributions, while land funds prioritize long-term appreciation with minimal operational complexity.

Each serves a different purpose, and both can coexist in a well-designed portfolio.

If you want help thinking through liquidity beyond “buy and sell,” I am happy to review it with you.

Appreciation is great.

Cash flow is freedom.

Income producing investments create optionality:
	• Reinvest
	• Diversify
	• Reduce reliance on a paycheck
	• Stay patient through volatility

That is why we focus so heavily on private credit and real assets.

Compounding works best when cash flow fuels it.

Senior Construction Project Manager @ VareCo

My company is Investor Acquisitions. 

In short, I help real estate executives attract LP investors. 

What I've found is the best operators in real estate often neglect marketing. 

Marketing is important enough to wish you were better but not important enough to take it on on your own. 

Put another way: If operations fall apart? 
You don't have a business to market. 
If marketing falls apart? 
You've survived this long without it. 

However, there's a catch 22 to this approach to marketing. 

The modern real estate sponsor, broker & lender needs marketing. 

They need to be known. 

Social media expedites 2 key aspects of deal making: 
1. Building awareness of you. 
2. Building trust in you. 

My business is taking the hard work of figuring social media out off your hands, & replacing it with all the benefits. 
1. Being trusted and known at scale. 
2. Generating quality leads. 
3. Raising capital/closing deals. 

The fun stuff that comes from being known. 

Whether you're the CEO, an executive team, or a broker, our team at Investor Acquisitions can level up your brand & content on LinkedIn. 

Our business is telling your story.

If this resonates with you, DM "Intro" to schedule an introduction call.

Cole Baker

Rondale Moore passed away today. 
We attended Purdue at the same time. 
The most electric player I've witnessed live. 

My favorite memory ever in college involved Rondale Moore. 

It was October 20, 2018, Purdue University was 3-3 and facing off against the undefeated number 2 team in the country, Ohio State University. 

It was the 4th quarter of the game. 

Terry McLaurin had just scored a touchdown to bring Ohio State within 2 scores with 4:40 to go in the game.  

For context, Purdue isn't that good at football. 
So when we have a lead?
I never really expect Purdue to keep that lead. 

But on 3&7, on the Ohio State 43 yard line, 
Rondale Moore made one of the most spectacular plays I've ever seen in my life. 
Breaking 2 tackles & spinning out of another for a touchdown. 
To all but seal the game for Purdue. 
Absolutely electric. 

I've never experienced the feeling of pure elation quite like I felt that night with Purdue vs. Ohio State. 

& Rondale was a huge part of that night. 

Rondale, you're an inspiration to me. 

Thank you for giving us your all. 

I pray for your family & friends. 
I pray for your soul. 
May God bless you, Rondale Moore.

I help real estate executives attract investors & build their brands | Trusted by 50 Firms | DM “Intro” to schedule a meeting with Investor Acquisitions

I did some door-knocking today. Did 13 doors. 

Here was the script I came up with in the car: 

"Hello my name is Cole Baker, I buy industrial buildings like this one, who can I speak with about submitting an offer to buy the property?"

Most conversations lasted less than a minute. 

Here were the results: 
• 1 firm no. 
• 3 properties didn't answer the door. 
• 3 phone numbers of owners.  
• 1 "come back tomorrow, the owner just left."  
• 5 "here's who to talk with but I don't have contact info." 

I even got a tour of one of the properties from an employee. 

My favorite interaction though was with an owner. 
Larry. 

Larry wasn't looking to sell, but here's what I asked him: 
"Are you looking to buy other buildings?" 

Larry perked up, & emphatically said "yes."

I got his number & will follow up. 

Day 1 in the books. 

About 2.5 hours of walking the streets of Denver. 
About half of that was hyping myself up to do the first knock. 
Then the second. 
But after about 5 I was getting excited about it. 

Means nearly nothing doing it 1 day, but figured I'd share. 
Looking forward to Day 2.

I spoke with an investor who replaced his $450,000/year tech job with a $50,000,000 real estate portfolio. 

Here's how he did it: 

1) He didn't want to rely on a boss

• There was not "accelerating" retirement. 
• He had to put in the time.
• This unsettled him pretty early on. 
• He had the stock options. 
• So he diversified. 

2) He didn't start small. 

• His first deal was a $1,000,000+ 8-unit deal. 
• He took the knowledge from conversations. 
• He took the knowledge from podcasts. 
• He took the knowledge from books. 
• Then...
• He implemented a value-add plan. 
• He remodeled the interior. 
• He updated the exterior. 
• He raised rents. 
• & refinanced. 

He still owns the asset today. 

Builds up the appreciation. 

Collects the cash flow. 

& the best part? 

No longer works a 9-5. 

P.S. What's the first thing you'd do when you achieve financial freedom?

Warren Buffett bought 49% of Berkshire Hathaway for approximately $8.3 million. 

60 years later…

The company is worth $998 Billion. 

Warren Buffett credits most of his early success to a mentor. 

Benjamin Graham. 

Buffett summed up Graham’s influence in 3 ways: 

1. Graham taught Buffett compassion for shareholders.
2. Graham taught Buffett the importance of generosity.
3. Graham taught Buffett the intricacies of investing.

Buffett credits Graham having been his greatest teacher. 

The greatest investor of our generation credits a mentor as the greatest influence for his success. 

Don’t overthink it. 

Find a mentor.

P.S. Tag your mentor in the comments below! Show 'em some love!

It took 1 year posting on LinkedIn to raise my first $1. 
It took 9 years before I started a profitable business. 
It took 24 years to find the woman I'd marry. 

All the good things we want take time & patience. 

Give yourself the grace to take that time.

I asked a lender (who has originated $23,000,000,000 worth of commercial real estate loans) 3 red flags to avoid in a general partner.

Here's what he said:

𝟭) 𝘼 𝙜𝙚𝙣𝙚𝙧𝙖𝙡 𝙥𝙖𝙧𝙩𝙣𝙚𝙧 (𝙂𝙋) 𝙬𝙞𝙩𝙝 𝙣𝙤 𝙘𝙖𝙥𝙞𝙩𝙖𝙡 𝙞𝙣 𝙩𝙝𝙚 𝙙𝙚𝙖𝙡.

- In his opinion, a GP must provide capital in the deal.
- It’s this simple: If a GP has no capital in the deal,
- They don’t have your best interest in mind.

𝟮) 𝘼 𝙂𝙋 𝙥𝙧𝙤𝙢𝙞𝙨𝙞𝙣𝙜 𝙜𝙧𝙚𝙖𝙩 𝙧𝙚𝙩𝙪𝙧𝙣𝙨 𝙬𝙞𝙩𝙝 𝙣𝙤 𝙚𝙭𝙥𝙚𝙧𝙞𝙚𝙣𝙘𝙚.

- You don’t want to hear what they promise.
- You want to hear what they’ve done.
- If they haven’t done very much, &
- They promise great returns?
- Run.

𝟯) 𝘼 𝙜𝙚𝙣𝙚𝙧𝙖𝙡 𝙥𝙖𝙧𝙩𝙣𝙚𝙧𝙨𝙝𝙞𝙥 𝙬𝙞𝙩𝙝 𝟱+ 𝙥𝙖𝙧𝙩𝙣𝙚𝙧𝙨

- In his opinion, teams shouldn’t exceed 3 GPs.
- When there are too many partners on a team,
- He questions the team’s ability to manage.

There’s no need to take on unnecessary risk.

Dismiss all GPs with these red flags.

P.S. What would you add to the list?

Dave Ramsey was a millionaire by the age of 27.
He owned $4,000,000+ in real estate in 1987. 
The next year? In 1988? He went bankrupt... 
He didn't stay there long though. 
Now? 
His company grosses $300,000,000 a year. 

Here's 2 lessons I've learned studying Dave Ramsey: 

1) Don't let your failures define you. 

• When Dave was bankrupt? He had a wife & kid too. 
• He had $0. No income. & a family to provide for. 
• BUT...
• He didn't let his failure define his story. 
• He got back to work. 

LESSON: 

To be great at anything, you will fail. Many times. 
If you want to build financial freedom?
If you want to build a business? 
Learn to fail. 

2) Sell what you believe in. 

• Dave is controversial for one main reason: 
• He hates debt. 
• A belief formed by the impact of the bankruptcy. 
• It also formed a passion for financial literacy. 
• More specifically, teaching others about it. 
• This passion?
•  It's the foundation of his business. 
• (A $300m per year business)

LESSON: 

Starting a business is really hard. 
But if you want to make it easier?
Believe in what you're selling. 

P.S. Which lesson sticks out most to you? 
P.S.S. What are your thoughts on Dave?

I spoke to an operator who replaced his finance job income with income from a $3,000,000 real estate portfolio. 

Here's how he replaced his W-2 income: 

1) He was fed up with his current role. 

- He had invested in 8-units prior to his discontent. 
- But the discontent motivated him to step up. 
- & the motivation led to 3+ more deals. 

2) He was willing to take lots of risk. 

- At one point, he had $250,000+ in CC debt. 
- Between labor & material costs for projects. 
- He went ALL in building his portfolio. 

SIDE NOTE: 

This was back in 2019, 2020, 2021 where interest rates were low. He had 3-4 credit cards giving him 0% interest for an entire 12 months! WILD!

3) He leveraged the BRRRR method. 

- At the time, he wasn't utilizing any mentors. 
- Just podcasts, books and good ole action. 
- After each renovation, he'd refinance. 
- & redeploy the capital. 

I wouldn't recommend taking on that kind of credit card debt. 

But one thing was very clear speaking with him: 

He would do anything to make it happen. 

P.S. To what lengths would you go for financial freedom?

I knocked on 10 more doors today. 
Yesterday, it took 2.5 hours to do 13 doors. 
Today, it took me an hour & 15 minutes to do 10.  

Here were the "objective" results from today: 
• 2 firm "no's" from building owners who's own businesses were in the building.
• 2 businesses who rent, but who's key people in the know weren't around.
• 2 phone numbers of business owners who know the building owner.
• 4 properties no one was at I'll circle back to.

Here were the "subjective" results from today: 
• I noticed a measured improvement around the anxiety I felt yesterday about door knocking. 
• I was genuinely excited about the opportunity to meet people. 
• For the first time in a long time, 
• I noticed myself counting the small wins rather than focusing on losses or rather than focusing on the ultimate win I didn't have. 
• It's day 2, there's plenty of challenges to come. 
• But I'm feeling good about knowing that I am doing the work I need to do. 
• Which is also new to me. 

Day 2 in the books. Looking forward to Day 3.

I spoke to a GP who’s acquired $300,000,000 of CRE.
The last 10 years, 
He’s acquired every deal below 30% LTV. 
Here’s why:

In his career, the GP has acquired over 100 properties. 
During the GFC, 10 of his deals lost money. 

Here’s the exact reasoning he gave why:

- 9/10 of the assets were not his usual niche asset-type.
- 9/10 of the assets were not his usual business plan.  
- 3/10 of the assets were not his typical market. 

In other words:

- He tried to do deals he wasn’t familiar with.
- At the exact wrong time in the market.
- with investor capital. 
- He & his investors paid for that. 

LESSON:

- This goes for both limited partners and GPs. 
- Invest in assets & business plans you know. 
- Jon Gray of Blackstone put it this way: 
- “You don’t outsized returns without taking risk.”
- “But we take risk we understand.”
- Debt will amplify that risk. 

P.S. Did this lesson resonate with you? 
If so, comment below why it do! ⬇️

I spoke to an investor who owns a ~$250,000 SFR. 

The catch?

He & his wife are JV's with family members. 
He & his wife want to sell the SFR. 
Family wants to keep it. 

The way the deal is structured, they can't just sell the property...

They're stuck. 

This is a major downside to the JV structure. 

Here's 3 tips to avoid this in future deals: 

1) Identify the long term plan for each JV member. 
2) Have your attorney draft clear exit provisions.
3) Create an exit plan aligned w/ expectations. 

BONUS: 

4) Don't ever do deals with family???

Will this guarantee you avoid issue?
No. 
But it will provide options.

Curious to hear your experiences with JVs. 

Have you experienced something similar?

𝘛𝘩𝘪𝘴 𝘪𝘴 𝘯𝘰𝘵 𝘭𝘦𝘨𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦; 𝘢𝘭𝘸𝘢𝘺𝘴 𝘴𝘦𝘦𝘬 𝘨𝘶𝘪𝘥𝘢𝘯𝘤𝘦 𝘧𝘳𝘰𝘮 𝘢 𝘲𝘶𝘢𝘭𝘪𝘧𝘪𝘦𝘥 𝘢𝘵𝘵𝘰𝘳𝘯𝘦𝘺 𝘣𝘦𝘧𝘰𝘳𝘦 𝘧𝘪𝘯𝘢𝘭𝘪𝘻𝘪𝘯𝘨 𝘢𝘯𝘺 𝘥𝘰𝘤𝘶𝘮𝘦𝘯𝘵𝘴.

$400,000,000 in transaction volume as a broker. 
30,000+ followers on LinkedIn. 
0 leads. 

A (now) client approached me with a question: 
• "Can you improve my LinkedIn results?"
• "I get 15K impressions each week."
• "I post content every single day."
• "I already have a following."
• "But I don't get leads." 
• "What do I do?"

In the last few weeks alone, this same client set 35 meetings from 100K+ impressions. 

Only 12 weeks into working together. 

Even cooler? 

As a broker, he has 10,000's of people seeing the deals he's selling each week. 

(Talk about a competitive advantage for his clients selling a deal)

Here's the exact post schedule we use for his content: 

M: Deal Breakdown Post
T : Asset-Type Education Post
W: Promotional Post for an Active Deal
T : Famous Person Post
F : Personal Post/Deal Breakdown
S: Weekly Update Post
S: Personal Post. 

P.S. Was this helpful? Comment below with what was most helpful.

I asked an accountant (who managed the books for a sponsor with $200,000,000 in AUM) the best way an LP can identify a quality sponsor. 

What he told me actually blew me away: 

1) Ask the GP what % of their income from their investment firm is from acquisition fees. 

• If the GP answers over 50%, do not invest. 
• This GP is too reliant on acquiring real estate for their income.  
• & it's an indication they don't have sound operations. 
• You want the asset management fees, promotes, & other income to far out way compensation from acquisition fees. 

2) Ask the GP what their payroll is. 

• If the GP doesn't know the answer, run. 
• You track what you care about. 
• If they don't know their overhead cost, 
• & don't know the cost of their labor. 
• They don't care about the deal. 

3) Ask the GP what % of asset management fees they collect across their portfolio. 

• When an investment is in distress, the first bit of compensation to be turned off is the asset management fees. 
• If a sponsor owns 20 properties, & is collecting asset management fees from 95% of them? 
• That's a great indication the deals are being run well. 

I'm curious to hear your thoughts on these questions. 

P.S. I help limited partners place equity into real estate. 

If you're a limited partner & this resonated, let's talk.

I asked an investor (who owns $10,000,000 worth of mobile home parks) why they chose the asset class. 

Here's what she had to say: 

• Depreciation.
• A low basis.
• Cash flow.

1) depreciation

• The value of traditional real estate is in the structure. 
• With residential real estate, 
• The depreciation schedule is 27.5 years. 
• Within commercial real estate, 
• The depreciation schedule is 39 years. 
• For mobile home parks, it's a totally different asset. 
• Almost none of the value is in its structures. 
• Rather much of the value is in roads, utility lines, clubhouses, lighting, fencing, electrical, pads. 
• All items that have "shorter" lives in the eyes of the law. 

2) A low basis. 

• Everything is better when you buy at a low basis. 
• You have flexibility through market downturns.
• You have lower breakeven occupancy.
• Debt is cheaper.

3) Cash flow. 

• Especially if you structure the site in the correct manor. 
• Think renting the pad sites. 
• Rather than the mobile homes themselves. 
• Cash flow is what creates freedom. 
• & many investors want that. 

P.S. What's your opinion on invest in MHPs? 
I'm much more curious after the conversation with this operator.

I spoke to an investor with $120,000,000 in AUM. 
He raised $2,400,000 in equity this month alone. 
Is the "slump" over?

I've heard a lot of chatter about a lack of capital.
I've heard a lot of chatter about down markets.
I've heard a lot of chatter about a recession.

Yet, plenty of people out there are doing deals.

3 trends I'm seeing in CRE right now:  

1. Cash flow is king for accredited investors.

• I'm seeing more deals get funded with 1 focus. 
• Not value-add. Not development.
• Cash flow.

2. Development is king for family offices.

• The conversations I have with capital allocators. 
• RIAs, family offices, etc. 
• A lot of them are focused on developments. 
• I feel like this is contrary to the news. 
• Are you seeing the same thing? 

3. First time investors want to operate. 

• I've heard this a lot from experienced operators. 
• But I'm starting to experience it for myself now. 
• People who haven't invested in CRE before? 
• They want to buy, buy, buy. 

Curious to hear what's going on in your market? 

What trends seem to be bucking the news?

or what trends seem to be sticking?

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