In this video, I’m going to show you how to find the best in the industry to invest in Real Estate.
Learn what to look for when finding your perfect investment partner.
Transcripts:
Omar Khan 00:00
Everybody I understand it’s so fixated on returns and risk and this and that. And in my experience, least what I tell us look. If there’s an experienced operator, any question you ask they probably heard this before, like a million times. What you’re really trying to do? In my opinion, at least because I invest in other people’s deals. That’s what I’m trying to do is what’s really trying to understand is screening the person for values and competence, basically. So, let’s put it this way. If the person is very honest but a complete idiot. You don’t want to be with that person because their honesty is useless. I mean, they don’t know what to do. Right. I mean, your money is at stake. Or conversely, if the person is extremely competent, they’re world-class at what they do. But they’re a very dishonest person. Right. Well, you also don’t want to be in that situation because you don’t want to be with the smartest group in the world. So, as an investor, it’s a lot of these people who get hung up on the numbers or it’s a 15% IRR, 17% IRR. But a lot of this comes down to basically a qualitative analysis. Like, is this person that I’m hopefully looking to get my money to? Do I feel this person will be a good steward of my capital? Look, In reality, the difference between a 15% or 16% IRR in total dollars, it’s not that much. It’s really not that different. But it is a big difference between somebody taking your money and burning it into the ground or losing it huge, or not. That’s what you’re really focusing on. So, if you’ve got say, whatever out of the 100% of the time, you’re gonna set a date to assess an investment or person, I would literally spend 99.999% on the team or the people. And don’t worry as much about the actual return. And the deal because if the people and the team are competent, experienced and the right people for you, the rest will take care of itself.
Chris Bounds 01:39
Huge. Yeah. And that’s been a theme with the guests coming on today. And this just popped in my head. Another analogy, a doctor. So a doctor, that’s very honest but incompetent. Are you allowing them to do open heart surgery?
Omar Khan 01:51
Oh, no.
Chris Bounds 01:52
No, but if they’re very competent, but they’ve got a whole stack of unethical charges on them, are you gonna let them operate?
Omar Khan 02:00
No.
Chris Bounds 02:00
Oh, you got to have both.
Omar Khan 02:02
Look, it’s the same thing. Whatever we do in our lives. Right. Like, you’re talking about this doctor example. There are countless examples of professionals and vendors we use in our own lives. The same criteria has to be applied to these sorts of situations. It’s just because it’s real estate or I don’t know what business private business doesn’t the criteria doesn’t change just because somebody wears a nice suit and has a tie on.
Chris Bounds 02:21
Yeah. Return of capital over the actual returns of the capital.