CI 68 – Unintended Consequences with Ed Conard

Ed Conard, author Unintended ConsequencesEd Conard, economist, and founding partner of Bain Capital, alongside Mitt Romney, joins Jason Hartman in this episode of Commercial Investing Center. Jason and Ed dive into his New York Times Bestselling book Unintended Consequences: Why Everything You’ve Been Told About the Economy is Wrong, along with his soon to be released book, The Upside of Inequality: How Good Intentions Undermine the Middle Class. The two discuss CEO pay, the growing technology sector, and the impact regulations have on competition.

Key Takeaways:

[1:28] Ed discusses his time at Bain Capital with Mitt Romney, when they experienced enormous growth.

[3:30] Bain Capital gave clients the opportunity to invest in capital investment and management supervision related opportunities.

[5:07] Bain Capital also provided a higher risk strategy, so they could capitalize on investment opportunities of undervalued assets.

[7:21] The Upside of Inequality tackles the productivity of the American worker

[12:18] The US economy is picking up, and Fortune 400 companies continue to turn over, suggesting companies aren’t just negotiating for a bigger piece of the pie

[14:47] People may find it hard to believe, but CEO pay may not be as ludicrous as it appears

[19:36] Compared to other sectors of the economy, tech companies pay less taxes and have much looser regulation

[21:22] Tech sector profitability has been amazing

[22:23] The economy is squeezing the profitability out of most other sectors.

[24:45] The way to grow in today’s economic landscape is to have trained talent and the willingness to take a risk


CI 67 – Franklin Street’s Andrew Wright’s Outlook for the Office, Retail, Industrial, and Multi-Family Real Estate

Andrew Wright, Franklin StreetJason Hartman interviews Franklin Street’s CEO and Managing Partner, Andrew Wright. Under Andrew’s leadership, Franklin Street has won several awards, including Best Places to Work by the Tampa Bay Times and the Tampa Bay Business Journal.

Andrew has had a personal involvement in more than $1 billion in real estate and finance transactions, and is also well versed in distressed real estate, having resolved more than $800 million in debt since 2009.

Jason and Andrew discuss the current state of US real estate market, particularly the multi-family and mixed use sectors, and where the value might be moving forward.

Key Takeaways:

[1:35] Trump’s potential impact on real estate markets

[4:59] The impact online shopping has had on retail centers

[8:31] The changing demand for the warehouse and delivery industries because of the internet

[12:54] Andrew’s take on if we’re closer to a boom or bust right now

[17:03] A market by market analysis on what cap rates Andrew’s currently seeing

[19:08] What types of investments Andrew is excited about today


CI 66 – Commercial Real Estate Investing for Doctors, Dentists, and Professionals with Buck Joffrey

Buck Joffrey, Wealth FormulaJason Hartman talks with Dr Buck Joffrey, a surgeon, real estate investor, and entrepreneur. Buck runs Wealth Formual, the podcast and company, which helps professionals like himself invest their money in prudent fashion. Buck and Jason discuss investing in commercial assets, why the work style of professionals sometimes lead to bad investing decisions, and alternative investments you likely aren’t considering.

Key Takeaways:

[1:55] Why doctors and other professionals might be bad investors

[6:57] Buck’s investing beliefs

[9:50] Single family houses aren’t his forte, but Buck loves real estate

[14:35] How Buck goes about structuring his commercial real estate deals

[17:30] Cap rates are getting squeezed now

[20:10] Buck is involved in a huge hotel deal in Belize, and why he also invests in things like oil and gas drilling, which he knows little about.

[24:20] Investing in life settlements

Wealth Formula Podcast

CI 49 – Investing in Distressed Assets with American Home Recovery Fund’s Marc Gold

Marc Gold, American Home Recovery FundMarc is the founding partner and managing director of both the American Home Recovery Fund and NoteWerx, the note portfolio management cloud ware.

Marc brings over 20 years of senior management and transactional experience in the paper business of mortgage banking and real estate. Marc co-founded American Home Recovery Fund, a multi-million dollar private equity multi-fund, whose primary mission is to purchase NPLs and modify the current borrowers. With the expansion and success of the fund’s business, AHRF developed their own note portfolio management platform, but when it became clear that their software filled a huge void in the note space, NoteWerx was born and turned into its own business channel.

Marc also serves as president of American Home Veterans, a non-profit organization in formation to convert distressed housing assets into donation homes and provides sustainable housing for our nation’s disabled veterans.

Key Takeaways:

[2:08] The American Home Recovery Fund aims to keep people in their homes, but doesn’t shy away from buying distressed assets.

[5:03] Why investors who used to be specialists are now starting to invest in new territory

[7:33] Why banks giving out mortgages, then promptly selling them

[9:32] Why the housing collapse didn’t make the banks get their act together when it comes to lending

[11:34] What’s still available out there for investors?

[15:02] Middle America has great deals still available

[17:49] Where Marc sees the overall market trending

[19:24] The impact of Dodd-Frank revisions on Marc’s business

Websites Mentioned: