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Home > Invest Like a Boss > 125: Vetting Real Estate Deals Terms, with Omar Khan
Podcast: Invest Like a Boss
Episode:

125: Vetting Real Estate Deals Terms, with Omar Khan

Category: Business
Duration: 01:23:11
Publish Date: 2019-07-30 04:12:16
Description:

Omar Khan’s global experience has been leveraged across commercial real estate and capital markets. He has advised on over $3.7 billion of capital financing and M&A transactions. Being a seasoned professional in capital markets (capital financing, M&A, sell-side equity research), strategic planning and operations has provided him with a unique perspective. 

In this episode, Omar will discuss why every potential investor should read and understand the PPM. Find out ways to leverage property tax advantages that will bring down your tax bracket. Learn how real money is made in real estate private equity while investing in deals where there is an alignment of interest with the sponsors.

 

Links:

Where we are:

  • Sam Marks - Tampa, Florida
  • Johnny FD - Tbilisi, Georgia

 

Discussed:

Recommended:

  • ArtofFX– Start with just a $10,000 account (reduced from $25,000)
  • Fundrise– Start with only $1,000 into their REIT funds (non-accredited investors OK)
  • Betterment– Get up to 1 year managed free
  • PeerStreet– Get a 1% yield bump on your first loan
  • Wealthfront– get your first $15,000 managed free

 

Time Stamps:

  • 01:14 - A brief wine history and traveling Georgia, the country
  • 07:05 - What is PPM used for?
  • 16:05 - What it takes to put together a PPM
  • 19:12 - “Everybody thinks their a genius because in a bull market everybody confuses luck with brains.” - Omar Khan
  • 24:32 - Private Placement Memorandum: The Sophisticated Investor’s Guide
  • 29:52 - How becoming a real estate agent will cut your taxes in half
  • 39:55 - A standard and fair depreciation clause
  • 41:03 - “Have low fees and a high equity structure so you get compensated for performance.” - Omar Khan
  • 49:15 - Class of limited partners and equity split best practices
  • 57:43 - The depreciation method used - Cost segregation
  • 1:04:40 - Foreign earned income exclusion & other taxes advantages
  • 1:16:53 - The risk of not reading the PPM

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