holmes
2.4K posts
Doesn't look like we're doing an interview 😆
Chad Griffiths@ChadGriffiths
Open invitation to @BeardyBrandon to join me for a podcast interview. We’ll livestream the conversation and you’ll have the opportunity to fully share your side of the story without interruption or misrepresentation. The invitation is open anytime. Let me know!
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@AnthonyVicino This is why gurus shouldn’t front as operators. Us guys that actually do this have to respect the craft and account for real life scenarios, not pump courses to poor people. This is why the distain for the gurus
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Dunking on people (especially "gurus") for admitting their mistakes is why most people (especially "gurus") never admit their mistakes.
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@sweatystartup Course selling gurus need to be called out when this happens. This hurts everyday people, meanwhile the guru made tons of money with the courses
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All the grave dancers on the people losing money in real estate need to read this.
Sahil Bloom@SahilBloom
Everyone needs to read this... The Crab Mentality (a visual thread)
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@TheRealEstateG6 It’s why I don’t engage too much on X. Tons of self important self righteous people shitting on people like Brandon and Jacob who are a MASSIVE NET benefit to real estate.
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@PaceJordanMorby @BeardyBrandon May be same woman I know.
Lost tens of millions and tried to move her assets offshore.
Probably lost 3500-4000 units and all LP capital.
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I’d like to give Brandon Turner sincere credit for this post on IG.
He fully owned up to the loss of LP capital publicly.
Explained his responsibility, which is the most important, along with the market factors the affected the downfall of this deal.
This is exactly how a sponsor should transparently communicate when something like this happens.
It doesn’t make the loss of capital easier, but I have true respect for people that take ownership.
The guru class has butchered the handling of their errors over the past 5 years.
Brandon is the first one I’ve seen to step forward and address it.
Credit where credit is due.
Bravo.
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I'll say this as someone with experience in acquiring several billion dollars of multifamily:
If you don't understand how floating rate debt and rate caps work, you really aren't ready to act in a GP capacity. (His comment here proves he didn't understand).
If you don't understand how investing in a market with rents up 40% might affect the future returns you think you're getting and then shrug it off: "hey, I couldn't underwrite a 7% cap could I?!" you're really not ready to act as a GP.
I hope that he's plugging as much of the gap with his own money as possible and definitely refunding his fees. I'm sure he's been aware of issues at this property for some time so hopefully he's been waiving the AM fee for some time.
If you're an LP here's my advice: If you feel like you're in a marketing funnel, that's not the right GP for you.
Brandon Turner@BeardyBrandon
Hey dude- thank you for the post. Wow, lots of comments. Yes, definitely some damage control in the post (as my investors and partners already knew all the information, so clearly this was for the public), but only because the Internet started going wild with a lot of misinformation about what was happening. So I definitely wanted to try and control some of that. The narrative was “Brandon Turner lost 100% of all his investors money in all his deals.” I’m mean I’ve been seeing fake rumors like that for years online, there’s not a lot a person can do. And I’ve already addressed a couple hundred comments over on Instagram, mostly the same stuff, but I’ll say a few things: 1.) yes it was adjustable rate, but we had a rate cap on it. For those unaware, that is basically like Insurance against the rate going up. So it can turn adjustable into fixed. And it worked. However, but I did not realize and I don’t think anyone realized… is that if rates did go up, you have to re-buy rate cap insurance and the cost went like 100x. Plus, there were limits. No one expected us to blow past those limits. So definitely I wish I would’ve known that before and I would not have likely done it. 2.) but this is the interesting thing about real estate. Or any investment, no matter what. If you underwrite everything, every line item, to the most insane unprecedented estimate, you would never invest in anything ever. You would live in total fear all the time. So for example, if the average cap rate was a four, I might underwrite to a five, but I would never underwrite to a seven. And I might assume rents aren’t going to do 5% per year, but I might say worst case is zero. But in Austin, for example, we’ve seen Rents drop 30%. Geeze. So on one hand, it’s easy to look back and say that we should not have bought the deal. And I agree. Maybe I got caught up in the frenzy of buying. But also- every line item went up to unprecedented levels. Our underwriting, even when I look at it now, wasn’t crazy. It was conservative. Just … wrong. Anyway, appreciate you. Thanks for sharing.
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@ChadGriffiths Since i’ve no fund management experience let me buy a massive complex with adjustable rate debt and we’ll all get rich!
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2 quick steps to becoming a millionaire:
Step 1: start with $16M
Step 2: invest it with this guy
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@sweatystartup @ChadGriffiths why would you comment this on this post?
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@khzny @ChadGriffiths @ADeermount I mean the Beardybrandon IG handle wasn’t enough of a red flag? Operators matter. Questions…
1. What’s the track record?
2. How much did the GP take in capital? 10%?
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@TheLongInvest Couldn't agree more. Will bring down the space sector
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$AMZN
Market Valuation: $2.8T
Revenue: $742B
SpaceX
IPO Valuation: $2T
Revenue: $18.7B
Let me tell you how this IPO goes
Strong pop followed by a crash.
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@aperez3830 @SCHDaccumulator i totally agree they’re the salt of the earth
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@wholmesst @SCHDaccumulator Good for you but you have to understand we need regular ass workers in this country and there's a way for them to achieve it through hard work and discipline.
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My uncle told me he maxed out his 401k since he was 34…
He’s 59 and a multimillionaire now 🤯
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@SCHDaccumulator if he’s happy then i’m happy but it’s super doable by 40. i was a multi millionaire at 24 through real estate
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@wholmesst Being a multimillionaire at 59 is extremely impressive.
Don’t let the bubble that is FinX convince you otherwise
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I make $200k, she makes $40K.
How should we split our $3K rent?
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