If you've been following me for
any given period of time, you

know, one of my favorite things
to discuss is this idea of the

founders investment theory. The
founders investment theory or

sometimes we call it the fit is
the bedrock for what

syndications and funds need to
do in order to set themselves up

in the right manner, to think
about their investments in the

right manner. And to present
those investment opportunities

to the, to their investors in
this video, is a blast from the

past. But this is probably the
best work that I've done in

describing founder investment
theory. I think it covers all

the bases on why it is so
incredibly important to make

sure that you've identified your
own founder investment theory, I

know you'll find it useful. The
founder investment theory is the

most important thing that you
can do. And think about for your

syndication or fund. So enjoy
this video.

The founder investment theory is
so important for what we do. It

is really the heart and soul. It
gives us guidance, it gives us

guidance on what we need to do
guidance on what properties we

should be looking at, gives us
an idea on how we can talk to

our investors. And it even gives
us an idea on how to better

serve our investors and
ultimately ourselves at the same

time. So that is why it is so
important. It is it's what we

do. So let's go through founder
investment theory. And we're

going to go through it in a
slightly different way today. So

I want to go through it through
the lens of what exactly we mean

by these different complex,
these different models and

strategies, and how we can
really leverage those different

strategies to really be better
served. So let's go ahead and

get started. We're going to
switch over to the whiteboard.

All right, looks like we are
there. So before I drew this

diagram look like this. We had
development, we had stabilized

add value. We had value, value
add, I'm sorry. We had

undervalued. And we had
cashflow. These are the four

main types of strategies that
exist in any developer in any

property, real estate deal. So
what I want to do is I want to

expand each of those and really
kind of dive into each and talk

about what we mean by each. So
let's go ahead and just gonna

actually, let's go ahead and
clear the board. That way we can

start really, really fresh. And
let's start with let's start

with how we earn the money that
we do. What are those things and

the I've talked about these
before, and these are the value

add opportunities. But this
really comes down to how we make

money. How we make money.
There's two ways that we make

money, right. And there's two
ways in every investment that we

make money and one is cashflow.

And the other is appreciation

they're very, very linked and
that they're very, very linked.

So and this is cashflow of the
investment. And this is the

appreciation of what it would be
today. And so it all boils down

to our idea that value equals
noi over cap rate or we could

really look at it as Our cash
flow

equals our value times our cap
rate. Or we could look at it as.

And this this value here, if
that is a value of if, if value,

if appreciation is you have to
bear with me on this one. I

didn't draw this one out. So
we're going live appreciation is

the delta, the change in value?
Which means that, that it would

be the change in and a Y over
the change in cap rate. Right,

so that that would be the the
change that's there. Is that

right? Would it be the change in
Capri? Now, this actually

wouldn't be the correct term,
this would be the this will be

over the new cap rate.

Right, so that would be the
change of value. So let's go

with that idea. So all we're
trying to do, all we're trying

to do is we're playing with this
algorithm here, or this

algorithm, it doesn't
particularly matter for our

purposes. So we're playing with
that. And that's how we get our

getting money. So let's start
with, let's start with on the

very bottom of this diagram, we
have cash flow properties.

Now cash flow property, all
we're what we're trying to do is

we're trying to, we're going to
hold these properties for a very

long time, we are going to put
money into our pocket of our

investor.

As regularly and as consistently
as possible, these are not

complex deals, they're long
folds. And so we're trying to

just put money in their pocket,
and eventually we'll sell it

with appreciation. And so that's
because we've got the value

equals the NOI over cap rate.
And so as noi goes up just over

time, so if you own a property,
that's big, you're paying

regular rents, and maybe you're
getting maybe it's an apartment

building in a really good area,
and you're getting rent growth

of 5% every single year. Maybe
that is that is driving up the

appreciating appreciating value.
So when you take that same noi.

So the when you take that noi of
x, and you add to it that

increased noi

then Then what you're actually
doing is you're you're loading

up this equation, so that this
number is really, really big.

And probably your cap rate is
fairly stable and it's not

changing much. That's really
what is going on underneath the

hood of what's there. So in
order to make good money on

these properties, what do we
have to do? Well, they're always

going to be in prime locations
and they're going to be in we're

going to be basically banking on
rent escalate on escalations,

but we always increase our noi.
So I try to increase it. We need

to increase our income and lower
our expenses. So this is what

we're trying to do. So our
income is increasing naturally,

because of rent escalations, or
this type of strategy.

You'll be looking for other
opportunities. But really,

that's what you're banking on,
this is an audit a very hands on

way to increase the value. And
then you're going to lower the

expenses. But again, this isn't
really built into the system for

a cash flow strategy. You're
really just banking on these

rent rent escalations that are
very good. And you're hoping

that that's that cap rate stays
say stays safe, stable, right.

So that's all you're trying to
do is just your count. So the

your driver here. So let's write
that down. So the driver of your

proposition of this strategy
driver

is rent escalations. That's what
you're trying to do. What you're

trying to do for let's go up the
stairs up to here

is, is this is also a longer
play. But you're really looking

at this value add component. And
so you're ultimately looking for

the increase in value to go up
and you're doing that primarily

for this kind of property.
You're primarily doing it again

from income

and, and not really from
changing your expenses, or from

changing the cap rate. So where
does that? Where does that

change in income come from? With
this, we've got it really coming

down to a couple of different
strategies that work. So we're

looking for expiring leases,
right.

That's what we're we're looking
for here and below market rents.

So which tells us basically what
our strategy is, so we're doing

that by by looking for, for
releasing either to existing

tenants or to new tenants is one
way to do it. Or we could also

as a major play here, we've
talked about this before talk

about re measuring.

So what we're talking about
about re measuring re measuring

is the strategy where you take a
property that's already

generating income, and you re
measure that whole space. And

measurement standards tend to be
in almost every lease I've seen

in every state is based around
the Building Owners and Managers

Association. So the standards
that they use change over a

period of time. And because it's
the Building Owners and Managers

Association, they want the space
to be as big as possible. So

it's no longer just measuring
the inside of the space while

the wall figuring out what the
square footage is. It's now

there are some exterior spaces
that count because of overhangs,

things like that. There are
other ways to measure it that

really increase the square
footage and I've seen this

increased by 10 20% Given and
give, that's a huge amount. So

if you're getting two bucks a
month, let's do it on a year,

I'd say you're getting $24 a
square foot on, on rent, and

you're increasing it by 20%.
Let's look at it. So for that

same space, you're getting
$28.80. So you're getting you're

getting that 20% More TASH, same
cap rate. So what's the

difference in the amount of
money that's there, so that per

square foot you've just added

and let's say it's at the
building is at a six cap you've

just added $80 per square foot
of value just by re measuring

now, so on a 10,000 square foot
building, you've now got

$800,000 more cash that you've
magically created out of

nothing. So that's pretty
amazing. So it works great. And

it's a great strategy here. So
let's put in what the driver is

here.

So our driver is increased

rent dollars over the term. So
do you see the distinction

there's, there's a nuance here
between the driver for

stabilized add value and the
driver for cash flow properties.

So where the big driver for cash
flow properties is just the

natural rent escalations that
are taking place. So in

apartment buildings are a great
example. So here in what it sort

of near where where we are,
right now is a is an area called

Van Nuys, you may have heard of
it. It is stocked full of

apartment buildings, I don't
even know how many apartment

buildings there are hundreds and
hundreds of apartment buildings

there. They are a commodity at
that point, because they are all

basically the same, they all
have to charge basically the

same rent, there's nothing
really differentiating one from

another. Other than some maybe
one has a little bit nicer

fixtures than the others. But
we're talking nuance here, if

you go to Van Nuys, you're
looking for just an apartment,

it's all going to be basically
the same cost within a margin of

error. So the all that you're
banking on there are these rent

escalations. So is that natural
rent that's climbing up every

year, in order to to appreciate
your property, it's a great

place to go when as long as the
those escalations are high

enough that it makes sense, when
they're not high, then it then

it doesn't really add
significant value to your

investors. But here in the
stabilized value add, we're

talking about how do we take
those existing rents, they're

gonna, they're gonna escalate as
well, but how do we like really

shove them up in order to
really, really bring them up to

the highest level that they can
be? So that is the nuance that

takes place there. Then we're
talking about

memory, let's go down here and
we'll talk about undervalued

properties

and undervalued properties, what
we're really trying to do here

so remember what an undervalued
property is. It's very low cost

per square foot and a very high
cap

and that's probably because of,
or that could very well be

because of renewing leases.

So here

we're not so much looking at the
NOI as the main driver, what

we're looking at is this cap
rate. Right? Because what

happens when all the leases have
like one year left to term on

them. And it's, you know, it's a
office building or retail

building or industrial building,
the cap rate is just super,

super high value is super, super
low. And so you can buy these

properties for very
inexpensively, maybe they're

selling it now just because they
need to, they need cash for some

reason. Or maybe it's because
they are. They're afraid of

what's going to happen if the
if, if it turns or whatever. But

so you're buying it at this
very, very high Capri. And then

you are counting on doing things
that will decrease that capric

things such as renewing leases.

Now, there's a distinction here
too, between renewing the lease

for an undervalued property, and
renewing a lease for the

stabilized value add in the
stabilized value add you've got,

you've got a very normal vacancy
factor that's going on, leases

just are naturally expiring. And
you're going to be able to

release it without much concern
in a undervalued property,

there's going to be some element
of it, where it is that the

value of that lease, the fact
that it has such little term is

pulling that cap rate, or that
value down, basically pulling

that cap rate up and making it
so it's undervalued in the

marketplace. So maybe it was, I
mean, imagine that you went in

and there was a department store
that's not doing very well and

they've got one year left on the
lease, we have this massive

property, and then you've got
this, you know, barely anything

left on the lease. And that the
fact that it's got so little

term is just dragging that, that
cap rate sky high in order to

crush it. So that's what what is
really going on in these

undervalued properties is that
low low cap rates. And so what

are what are driver is your high
cap rate

actually, well, your your driver
of making money is moving cap

rate down

to where the rest of the market
or a normally positioned

property would be, you're trying
to move it down and that most of

the time comes from renewing
leases.

So our fourth major category is
of course your value add. Now

here, you've got a bunch of
things going on, right so this

could be the what separates it
from the stabilized value app is

it's really not about just
getting the just getting that

increased rent dollars, you're
really trying to get the

increased total dollars coming
in. So what you're trying to do

is you can do any strategy to

you trying to do really any
strategy that raises that noi or

lowers that cap rate at the same
time. And so here this this is

sort of the kitchen sink
approach of what kind of fits in

here. So we definitely have
rent, rent growth and we

definitely have renewing leases
to change that cap rate. You

Make changes. So what I'm trying
to do is I'm trying to increase

the income. And that can be any
of these. So rent square

footage, but that's really rent
isn't it, or adding other

income. Or here's where we
finally see we're trying to

lower our expenses, and lower
them to such a point where

suddenly we've got you know, as
few expenses as possible now,

that could even come in the form
of transferring that risk from a

existing lease structure on to a
new lease structure that has

different terms for paying
operating expenses. So moving

somebody from a modified gross
to a triple net, moving somebody

from a full service gross into a
modified gross, that can all

decrease those operating
expenses, because really, it's

just changing how your pool of
money is. It's not actually

neither of those strategies is
actually lowering your expenses,

it's actually really increasing
your income, and how that comes

in. But it also decreases the
amount of risk that you're

taking. Some of the other
strategies, though, that do

lower expenses would be suddenly
submetering. other energy

sources like solar and or just
lowering your property taxes,

all in an effort to raise your
noi as high as possible. Now,

we're also trying to change our
cap rate.

So we're also trying to lower
our cap rate. And so there are a

lot of things that affect the
cap rate as well. So cap rate

really is all about positioning.
And so we've got term is

definitely a major factor as we
talked about in the undervalued

properties. But it's also you
know, just how your property is

situated. So it could be your
tenant mix. For example, if you

have a retail center, that is
almost all that's got 10

tenants, and nine of them are
service tenants where it's, you

know, fix your cell phones, your
h&r block, things like that,

that is nowhere near going to be
as low of a cap rate as

something that's like all
restaurants, all restaurants is

always going to have a better
cap rate, because they're just

better tenants, and they pay
more money, there comes out of a

comes as a matter of rent. But
it also comes as just the cash

that's available, when you have
a restaurant that's earning good

money. The rent cost isn't as
major of a factor. You know,

it's between eight and 12%,
normally, of what of their

expenses, where it can be, you
know, 20 to 30% of a service

based business expenses is just
the office, not the best way for

them to choose that. But that
tends to be the oftentimes the

case, I mean, think about the
cost of, of an h&r block, and

how much that out expensive that
rent is just to just in

comparison to their operating
expense, the only other expenses

that they have really is as a as
a franchise is the cost of the

of labor. So it doesn't really,
it doesn't add value to it. So

changing that tenant mix can
definitely decrease the cap

rate, which would be a good
thing. And then just changing

perception. So this could be
refacing, changing the

architecture, making it the new
cool hip building, even if it's

not new and cool just making it
a place that tenants want to go,

because every landlord is
concerned about vacancy. And so

the more sexy that a property
is, the more likely they're

going to be able to release
property and the better the

perception is which lowers the
cap rate, and then it adds that

value. So

So with these

are driver is is both so it's
it's raising noi by more dollars

which can be rent or other
income

lowering expenses

and also let's call it
repositioning

or a lower cap Okay. So you're
really repositioning it for a

lower Capri. Now, the the last
strategy we talked about is

develop and it is us kind of a
special thing, but it actually

is it follows the same general
model. I mean, what are you

trying to do here driver is to
create an noi right, you're

building a space in order to
rent it out and have a cap rate

and the lower the better, right?
So you want to build the best

building you can. So that cap
rate is as good and as appealing

in the marketplace as possible.
If I'm a developer and I've got

a chance to build for say a

let's say let's say I've got two
different facets food companies.

Let's say we've got on one hand
we've got a Carl's Jr, which

generally does very good. And
we've got an Arby's which

generally doesn't do very good.
The Carl's Jr. is going to make

more money, it's going to have a
lower cap rate because the

marketplace appreciates the
Carl's Jr. Much better. So in

that's why it is has that higher
cap rate. So I think this

probably makes sense. Excuse my
allergies today. So we've got a

that is what we're doing, when
we look at at the strategies and

how those different add value
strategies kind of play out or

value add, I would say add value
out of the different value add

strategies play out and then in
in the same strategies because

it's really all the same thing
removing the same kinds of

things in order to create that
value added for our investors.

So, what is the next step of
building out our our founder

investment theory? It is we
start identifying our niche

which is property type

we started thinking about what
our property type is making sure

that we understand what it is we
should know as many things about

it as possible. What how does it
how do the main tenants make

money what are the main ways
that those tenants make money?

What is the the main risks for
those kinds of tenants? What are

the what are the rest of the
terms? What are the vacancies

that occur? What are the lease
types? How many tenants you're

going to be be working out how
hands on is it versus off. And,

for example, if you've got a
apartment building is much, much

more hands on than a warehouse,
you know, you're, you probably

will only show up to the
warehouse once you know to rent.

And that's it, you probably
don't need to go very often on

apartment building, your
property manager is going to be

there many days a month,
visiting the property, visiting

tenants, making sure that things
get improved, or that the

toilets are aren't flushing or
leaking or whatever. So those

are the kinds of things in the
property type. And then we've

got our location you know, how
far away is it from you where is

it located, those are the things
that fall into your niche. The

last category is your risk
profile.

And we talked before about the
spectrum, high risk, medium

risk, low risk and somewhere on
the spectrum is where your

investors like to sit and hear
to is somewhere on this spectrum

is where your is the risk of
your cause is part of the risk.

So development tends to be high
risk. cash flow properties tend

to be low risk, stabilized value
add tends to be medium risk.

Value Add tends to be medium
risk. And the undervalued

properties tends to be low risk.
So you see what happens here is

that on this continuum, between
high risk and low risk, we've

also got the complexity of the
strategy, the more complex the

strategy, the higher the risk is
going to be. It's just the

natural part of what is there.
And so that is also part of the

risk profile. If you've got a
bunch of low risk people, and

you're doing development, it's
probably not going to work out

very well. If you've got a bunch
of high risk, high rollers who

like taking big, big chances,
doing this deal where you're

buying this, this four Plex in,
in Beverly Hills at a 3.5 cap

and you're just waiting for
rents to increase naturally.

They're not going to go for it.
It's it's boring, and it's not

going to happen. So it's this
risk profile. I think I told the

story of I may not have told it
to y'all. So when I was putting

a deal together, I went and
there was a prominent doctor who

I thought for sure was going to
invest in the project. And I

wanted to I thought, okay,
there's no way that I can't get,

say $300,000 from this guy, he's
got a ton of money. I know he's

sitting on cash right now
without anything to do. And he,

he doesn't have, he doesn't have
anything to go in it. And he

likes me, he knows me and trusts
me. This was before I came up

with founder investment theory.
And before I came up with this

idea of a risk profile. So I had
lunch with this doctor. And so I

said, Dr. S, here's this
property, I'm syndicating I've

got all this stuff. And then
it's a great property, it's

gonna make a ton of money and
it's gonna make a ton of money

because we're buying it at a,
you know, at a low cost. We're

going to wait for it to
appreciate over five years and

it looks like we're gonna get a
nice 17% Actually, I think that

one was actually 50 We're gonna
get a nice 15% IRR. The tenant

is safe. They're not going to do
they're not going anywhere. It's

really going to be superduper
you're gonna love it. And he

said he looked at me and he was
like, Yeah, it sounds like a

good deal, but it's not for me.
And I was shocked because it was

like well, why I mean if you can
make if you got cash just

sitting around. Why would you
not take a deal like this where

it's a good thing you know? 15%
is a good return on a property

with such low risk, I mean, it
was 15%. Oops. It was 15% in

risk, but it actually was like
fairly low risk profile. In

reality, it really sat here.
Well, normally, if you're paying

15%, it was higher. And he said,
Tilden, I've got three pools of

money that I that I use, okay.
And this will explain why yours

isn't a good fit. So I have this
category of money. And this is

where a large portion of my
money is, is, is pooled. So I've

got is very large pool and I it
is super low risk. It's money

that you know that a great
recession could come that money

is really not going anywhere
we're talking, it's in like long

term bonds, and it really is
just going to sit there, and

it's going to sit there forever.
And it's my money that well,

when everything goes to hell in
a handbasket. I know that

money's there, and I'm going to
be very, very comfortable, even

if the worst thing happens. So
it's very, very low risk

planning. Now I've got a
category of money, that's maybe

that's about a little bit
smaller than my low risk

category. But it's, it's a
fairly substantial size. And

this is my income money. And my
income money basically pays for

my standard of living so that I
make sure that I've got, you

know that I've got money coming
in for the rest of my life, and

I don't have to work or I don't
have to really do anything, I

get to go on trips, I get to
spend money, and my income

money, it pays me, you know, one
to $2 million a year. And it's

it's very comfortable. No, I'm
I'm extremely comfortable. And

I've got a great lifestyle. And
I don't really have to worry

about it. So the bulk of it is
my income. And I said, Okay,

well, that's two of them. But
you know, I know that you put

money into other into other
projects, and you put money into

some businesses, and you've told
me about some of these

investments that you've made in
these venture capital things

that you've been doing. He said,
Yeah, that is my full around

money, or play money. My play
money, I'm not even really

expecting to get that money
back. You know, if I do, I

expect to get like a 50% return
or more. But my really my play

money is there so that I can
have fun, right? I enjoy

investing. I like it, it's fun
to do. And I like experimenting

and seeing what happens. I like
finding these these people who

need money than just the capital
to do these crazy things. And

when they pay off, they're gonna
pay off big time. But if they

don't pay off, well, ultimately,
it'll kind of evens out, because

five of them won't pay off, but
one will and it will do great.

That's my play money. And my
play money isn't very big. And I

said well, okay, but this, this
is one of those product

properties to this was one of
those projects where, you know,

it's really got going to do that
it's gonna, you know, it's, it's

something where you get to be a
part of it, and it's gonna be

fun. And he's shook his head
kind of smiled and said, Now,

it's not say, it's, it's not
play money, it's got, it's got a

50% I'm looking for a 50%
minimum return, you're talking

about 15%. That's terrible. And
this is like 15% In five years,

I'm gonna get that money back.
You know, if maybe if it was

like, six months, I do something
like that, but but been in five

years, that's five years that I
don't have that money to put him

in things that are a lot more
fun than your project. So it's

not play money. And I said,
Okay, well, you know, it's got

to, it's going to be paying out
dividends. And, and it fits that

right. So it should be an
income, it should be income

money. They said, now, you just
told me that the real money is

made on the appreciation of the
property because you're buying

it for a low cost, and you're
gonna sell it in five years for

an increased cost when the rent
bump cups. You know, the the

amount that it's getting right
now on the income, you know, is

maybe 4%. So it's not not
interested in 4% I need to get

much better than that in order
to live off. This is the money I

live off. So it's not income.
And we all know that it's real

estate. So there's no way this
thing's low rents. It just is

it's just a property. It's
backed by a good tenant, but you

know anything good to happen.
You know, they're not assigned

as the US government, it's not
low risk. So although your

project sounds interesting, it's
not anything that fits into one

of my three categories of play
money, income money or low risk.

So you see what I did there? I
went Dr. S, thinking that, just

from the viewpoint of, I've got
a really strong sound investment

that should make a lot of money,
and was really good. And I went

into the meeting thinking that
investors make a decision based

on is this seem like a
reasonably logical way in order

to spend money? But that's not
the way that investors actually

think the investors think first
stuff? Well, first, they want to

know, does it make sense? Right,
they want to know that the deal

makes sense, they can kind of
understand it,

but most of it at least. So
we've got this idea of does it

make sense. And they do need to
know that. But the making sense,

is just a small piece of the
puzzle. Because most of what how

they make the decision is
underneath the water. This is

all logic. And this is all
emotion. And if you come at it

from looking at just as an
investment itself, just like one

thing, saying, Does this one
thing makes sense. But there are

a lot of other one things out
there. That makes sense. But

when you can hit off these kinds
of things, and identify where

does their natural risk profile
lead them? Where do they like to

sit? You know, then you're
talking about all this stuff

down here, all the emotion that
it can make sure that it feels

comfortable to them. And when
you've got a strategy that they

can kind of pick and understand.
But it gives them something more

than just kind of like, okay,
that I understand it, it gives

them an idea of something that
they feel like they want to be a

part of. Now, sometimes people
want to feel like they can be

part of a value add project,
because they're taking a

building that's been dilapidated
and ugly, and they're being part

of that whole thing that read
reimagines it and makes it

awesome. And they feel like
that's my building, they can

point to it and say, Yeah, well,
you should have seen it before.

Right? That's an emotional
thing. It may make sense, in a

logical portion. But not only
does that in order to make sure

that they feel secure about it
as an emotional driver. And the

same thing goes for this cash
flow properties, right. So here,

you've got investors who are
afraid of all the things that

could happen, they want
something very secure, they want

something very safe, and they
want something Well, boy, those

properties have always been
good, they're always going to

increase at that same level. And
it gives them that sense of

comfort. And so if you bring
those same people and try and

tell them how you can't lose on
this development deal, of

course, it's risky and a risk,
it's all out there something

you're appealing to the wrong
person, because they don't have

the emotions to drive it. And
then you've got the you know,

and there's the same can be said
for the undervalued properties.

And for the for the stabilize at
Valley, we'll just use the

undervalued properties as an
example. You've got an

undervalued property, you're
going to this person and you're

saying, Look, we're gonna get
we've got this building for a

real steal, we've got a bargain
here. This thing is worth pet is

worth much, much more than the
pennies on the dollar that it's

selling for. This thing is going
at such a low rate and it's

going to it's going to be a
real, real great deal. This

appeals to your bargain hunters.
This is a great property. And

the the logical part of it is
really kind of small. I mean,

you've met these people, right?
You met people who are so in

love with finding bargains that
you tell them that it's 50% off,

and they don't even look at the
price tag at that point. And

that's 50% off it must be a
great deal. And so you're

driving to this emotional spark.
This is why fear exists. This is

what it does, because it every
piece of it from strategy to

niche. And then we're talking
about property type, to

location. And the risk profile
all feeds is serves this

emotional part, before it even
comes close to serving the

logical part. So we can serve
that. And it still makes sense,

because this is why we do the
underwriting, right. So we do

the logical part. That's why we
present good logical part, we

have nice underwriting. So it
all makes sense. But the whole

story behind it is just to get
to that emotional side, because

once they've made the decision
emotionally, they'll do whatever

it takes to make that decision
logically. And fit is the only

way to really get at it in a way
that makes sense to somebody

where they can feel okay, doing
it, you're trying to give the

logical part of them permission
to say, okay, to the emote

emotional part, or look at it.
In the converse, you're trying

to do whatever you can, so that
the emotional feels okay, so

that the logic can just pick up
the slack and pull up and the

rest of the way there, that is
founder investment theory and

why it is so powerful. All
right, so we're gonna do a

little bit shorter talk today,
because we've talked a lot, and

I think we've really dived in,
good, here's what I want to have

happen. I want people to really
spend some time thinking about

this, because Boughner
investment theory is not a light

topic, it's not something there
just because I think it's

important to find the values of
your company, and anything like

that. It is because this is how
you convince investors, this is

how you choose Properties. And
this ultimately, is how you

yourself are comfortable with
it, too. I mean, if you were one

of these very, very low risk
people and you were doing

development deals, you had a
very short life, you're gonna be

stressed out and freaked out all
the time. Or if you're just

doing these various, these cash
flow deals, and then but you're

really like this crazy developer
at heart, you are going to be

bored out of your mind. So
answering the question of

founder investment theory is
where you start. So think it

through how do you do it for
yourself. And then for once

you've decided that, now you
know how to start talking to

investors, and how you can start
lining up to their emotional

side, but you also know how to
start looking for properties.

Because now you know, okay, I
need something that's value add.

And so I'm looking for these
kinds of things. I know this is

my niche, I know this is my this
is my location, this is where I

want things to be. And you can
start having that conversation

with brokers and start building
out your listings and LoopNet

and Craxi and wherever else
you're looking the MLS and

making sure that it all lines
up. I know you'll find that

useful. Again, it's about found
our investment theory.

Everything boils down to that
that is what is will make you

successful as a as a syndication
or as a fun if you're thinking

about that that fit every time.
It's putting yourself into the

right mind of your investor. Now
this version of the fit, this

was actually put together for
people that I would coach on how

to get started in real estate
syndication. So it's obviously

real estate centric, but it
applies across the industry.

It's an across asset classes. So
it's that idea of fit that you

have to be thinking of in order
to be successful in this

business. My name is Tilden
Moschetti. I am a syndication

attorney with the Moschetti
Syndication Law Group. If we can

help you with your Regulation D
Rule 506(b) or 506(c) offering,

please don't hesitate to give us
a call, whether it's real

estate, you're raising money for
a business, whatever it is, we

can help you put that together.
We can talk about that your fit,

strategize about that all in the
context of making your your

syndication or fund both
investable through using the fit

as well as compliant with the
rules of the SEC. And the state

regulators.