The FORT Podcast: “The Real Estate God”
On this episode, Chris talks with the anonymous “Real Estate God” (www.Twitter.com/TheRealEstateG6) about how and why he launched his online persona to tweet about Real Estate. They also discuss his experience working in Private Equity in San Francisco, the future of the office, retail, and hotels post-COVID, and the appeal of multi-family as an asset class.
Finally, they talk about The System, an online course released by The Real Estate God to help both RE newbies and seasoned veterans attain true wealth through real estate. Enjoy!
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(02:06) – The Real Estate God’s Background and How He Got to Where He is Today
(02:35) – How did you go about creating your online persona?
(03:22) – Can you describe the type of work being done at the PE firm you’re working for?
(04:24) – What type of office are you investing in?
(05:15) – How do you source deals?
(05:49) – Can you describe from your perspective how office, retail, and hotels were affected in 2020 and their future looking forward?
(10:36) – What type of retail do you play in?
(11:17) – What’s going on in San Francisco from your perspective?
(14:39) – Are you worried about the tech jobs leaving SF due to WFH?
(15:25) – Why is the government so restrictive there in regards to office?
(17:34) – What’s the leasing activity like in SF right now?
(19:08) – Are employees allowed in the offices in SF right now?
(19:38) – What’s keeping you in SF?
(20:39) – Can you walk us through a recent office deal in this office environment?
(22:53) – Can you describe the seller’s mindset in this situation?
(23:42) – The Methodology of Underwriting an Office Deal
(25:36) – How do you think about mitigating the risk of TI (Tenant Improvement) exposure?
(26:46) – Are the capital markets in office starting to open up?
(27:24) – Is there any tech or software that’s emerging in office?
(27:56) – Can you define Creative Office Building from your point of view?
(28:14) – Are the buildings coming with this ‘creative’ look or are you making a lot of those changes?
(29:01) – Why is multi-family an appealing asset class to you?
(31:14) – How did your idea for The System come together? How did you go about putting it in motion?
(33:36) – What do the two structures look like if it’s an IRR hurdle vs. a Multiple hurdle? Why is Multiple better?
(36:24) – Can you summarize your view in your course on how you think someone can turn $50,000 into $1 Million?
(43:06) – How did you go about developing your table of contents for the course?
(44:06) – What was the thesis for the course?
(45:08) – Have there been any cool testimonials or outcomes from those who have bought your course?
(45:40) – Are most of the people buying your course brand new to real estate or is it a seasoned person looking to get more educated?
(46:20) – Changing the Future of Education
(49:34) – How did you find your mentor? How would you advise listeners on finding someone who can change their life through mentorship?
Questions from Twitter:
(54:06) – Mindset & Callicrates
(55:39) – Do the people you work with know that you’re The Real Estate God?
(56:11) – Is there something that’s keeping you from starting your own firm?
Episode Summary
The Real Estate God, an entity who has chosen to dwell partially in anonymity, utilizes social media platforms, notably Twitter, not merely as a channel for disseminating wisdom in investments and property dealings but also as a strategic tool to potentially hedge against the temporal financial gaps intrinsic to the real estate industry.
Unlike the immediate gratification or dismay often witnessed in the stock market, real estate investment is delineated as a meticulous, long-term endeavor, where returns are typically not instantaneous and are often realized in a more gradual manner over extended periods. This perception, held and propagated by The Real Estate God, underscores a pivotal principle within the industry: patience intertwined with strategic planning and execution.
In delineating the nuances of real estate, the dialogue traverses through the essentiality of understanding market cycles, recognizing opportunities, and the judicious allocation of resources, ensuring that investments are not merely timely but are also rooted in comprehensive research and analysis. The Real Estate God, notwithstanding the enveloping mystery, reveals a strategic approach to property investment, where the identification and utilization of opportunities, especially amidst market fluctuations, become paramount.
The conversation subtly weaves through the challenges and perils that accompany the lucrative allure of the real estate domain. With market conditions that can pivot with economic, social, and even unforeseen pandemic-induced shifts, the discussion accentuates the imperative nature of adaptability and foresight in navigating through the invariably turbulent waters of property investment and management. It is within this context that the discourse elucidates the significance of diversification, not merely in a portfolio but also in skillsets, ensuring that an investor is not left beleaguered amidst unanticipated market shifts.
Technology, notably, is not left untouched in this exploration. Its integration into real estate operations, management, and investment strategies is dissected, offering listeners a glimpse into the confluence of traditional investment wisdom and contemporary technological advancements. The Real Estate God and Chris Powers, while reflecting upon the incorporation of technology, pivot away from perceiving it as an isolated tool, instead, embracing it as an enabler that enhances, accelerates, and optimizes decision-making processes, operational workflows, and strategic implementations within the real estate milieu.
The dialogue also ventures into the realms of risk management and mitigation, particularly within the context of property investments. The Real Estate God, while acknowledging the inherent risks, propounds a philosophy of balanced risk-taking, where due diligence, comprehensive research, and a keen understanding of both macro and micro-economic variables become integral to ensuring that risks are not merely managed but are also intelligently leveraged.
As the conversation spirals towards market dynamics, the interplay between supply and demand, particularly within specific geographical locales and property types, is meticulously explored. The Real Estate God underscores the significance of understanding not merely the current market conditions but also anticipating potential future shifts, thereby ensuring that investments are resilient, sustainable, and are capable of weathering through various market cycles.
A particularly insightful segment of the dialogue encompasses a discourse on capital allocation and financing strategies within real estate investments. The conversation, while acknowledging the conventional avenues, also explores alternative and innovative financing mechanisms, providing investors with a panoramic view of the various pathways through which property investments can be actualized and propelled.