In today’s podcast episode we interview Joel Block, President and CEO of Bullseye Capital. Joel’s company is the nation’s preeminent real estate syndication training provider, helping real estate brokers, other real estate professionals and investors acquire the skills to pool resources so that they can build wealth by controlling growing portfolios of real property. Today’s topics are focused on the markets in the eyes of the GPs, significance of keeping your GP’s wallets as deep as possible and Joel’s tips for limited partners.
GPs Should Think For the Long Term
General Partners are the ones responsible for looking out for deals in the markets, and are involved in the operational side of things. Joel discussed that GPs should be out for the long haul because the game is a marathon and not a sprint. So, keeping their Limited Partners for a long period of time is the key for successful investment returns because some GPs try to juice every single aspect of the deal which ‘causes Limited Partners to back away from deals which is not favorable for GPs in the long run.
Keeping Your GPs' Wallets as Deep as Possible
Contrary to the saying that Limited Partners hate to see their GPs’ wallets become thick and fat, it should be the other way around. Instead, LPs should allow their GPs to have deep pockets. Why? Because in case of unfortunate events in the operational side of things, GPs will be able to bounce back and recover. It is not in the best interest of LPs for their GPs to declare insolvency because first and foremost they are the ones involved in running the show. And even if there is a substitute GP. That said GP would not have any reason at all to rescue the failing deal just because there is no economic reason for him or her to do so.
Joel's Market Outlook & Tips for Limited Partners
Joel emphasized that deals are almost always everywhere in the markets. But given the fact that the market condition is actually not doing that great, LPs need the following things to be in their checklist.
- A GP with insider knowledge who really knows what is going on.
- A GP who has situational knowledge and is aware to be able to figure out the best performing properties.
- A GP who is of assistance and has the experience to weather the storms of declining prices and maximize the returns on escalating prices.
- A GP who is able to articulate and execute their strategies for different market conditions.
Who is Joel Block?
Joel addresses business organizations, sharing his insights and expertise from 30 years in the venture capital and hedge fund businesses. His fast paced, entertaining, but life-changing material amazes audiences because of Joel’s ability to impart complex concepts in the simplest ways using analogies and stories. Audience reactions range from roaring laughter to pure amazement as Joel opens minds to new concepts and better ways of running businesses and making money.
Joel also hosts conferences to assist others in acquiring the skills needed to syndicate properties. As the nation's preeminent real estate syndication training provider, he helps real estate brokers, financiers and investors acquire the skills to pool resources so that they can build wealth by controlling growing portfolios of real property.
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