Welcome to another episode of Spur Equity’s Spur Your Wealth podcast! In this episode, we delve into the world of K. Trevor Thomson divulges investment insights. He discusses the ideal deal structure of a 70/30 split with a 7% pref return and incentives over a 17-18% IRR. Through a personal anecdote, Thomson underscores the significance of team dynamics and genuine connections, both in person and online, particularly post-COVID. Hosts Param and Rav Singh concur with the crucial role of the right networking strategy in successful investing. Transparency during adversities, the importance of diversification, and the mindset of real estate as a long game form the crux of the conversation.
The episode navigates through the challenges and strategies of current market conditions. Listeners are advised to seek stable investments with conservative underwriting and are cautioned to maintain investment diversity. Thomson closes with an open invitation to connect on LinkedIn, while the hosts encourage applying knowledge to action for financial success. They invite audience engagement and participation through their podcast network.
KEY POINTS FROM THE EPISODE:
1. Importance of sound investment structure: K Trevor Thomson underscores the necessity for deals with a preferable 70/30 split and a 7% prep payment, emphasizing a waterfall provision for returns exceeding a 17-18% IRR.
2. Value of networking and personal connections: Thomson champions the approach of meaningful networking at events, championing connections and reciprocity, and outlines his own transition during COVID emphasizing social media engagement.
3. Investment strategy insights: Through the episode, there are discussions about prudent investment principles like cautious underwriting, transparency from sponsors, the significance of betting on the right people, and Trevor’s own experience with profitable investments.
4. Diversification and long-term perspective: Trevor discusses diversifying investments and avoiding overconcentration in one asset class, reinforcing that real estate is a long-term play with compounding returns over quick gains.
5. Practical advice for real estate investing: For newer investors, the podcast provides guidance on what to look for in deals, highlighting fixed-rate debt, market knowledge, and the importance of investing in deals led by experienced and stable teams.
CONTACT YOUR HOSTS:
LinkedIn: @spurequity
Website: www.spurequity.com
CONTACT TODAY’S GUEST:
Website: https://massive.capital/
Youtube: youtube.com/c/KTrevorThompson
