Steven Gage

I asked an investor (who’s built $1,000,000,000 worth of real estate in his career) the common denominator amongst the best developers. 

His answer may surprise you. His answer: 
↳failure.

In his experience, failure is the best teacher. 
Meaning the best developers often have failed. 
The trick is being able to mitigate the failure. 
• When they fail to catch an issue in due diligence.  
• When they fail to coordinate material on time.
• When they fail to identify a new law change.
• When they fail to manage their team well. 
• When they fail to stay below budget. 
↳How do they respond?

The best developers respond well to failure. 
They accept failure. They identify a solution. 
They move on.

Here’s 3 questions to ask every developer to understand their relationship with failure.

1) When’s the last time your team failed? 
2) Have you ever lost money on a deal? 
3) What’s a recent SOP you installed? 
↳Why’d you add the SOP?

Listen for their response & how they respond. 
Do they dodge the question? Or own it? 
What’s their tone?

How you “feel” after their answers will tell you a lot.

P.S. Was this helpful? If so, share why!
What other questions would you add?

My wife and I have 2 kids.

And if there’s one thing I hope I’ve taught them, it’s this:

Character is everything.

• In business.
• In relationships.
• In how you show up when no one’s watching.

I tell them:

→ Keep your word. Every time.
→ Aim for win-win deals. Always.
→ Choose the work you love. Life’s too short not to.

But no matter what?

Faith and family come first.

That’s the foundation I want them to build on.

What values do you try to pass on to your kids?

My wife and I have 2 kids.

And if there’s 1 decision that impacts their life the most, it’s this:

The spouse they choose.

If you want to fail in life.
Pick a spouse who spends more money than you make.
If you want to fail in life.
Pick a spouse who doesn’t believe in you.
If you want to fail in life.
Pick a spouse who doesn’t lift you up.

If you want to succeed in life?
Pick a spouse who does the opposite of the above list.

If you’re going to achieve your dreams,
If you’re going to build a life you want.
If you’re going to succeed.

The greatest differentiator is your spouse.

If my wife and I can hope for anything for our kids?

It’s that they choose a spouse that loves them well.

& cheers them on in their pursuits.

What values do you try to pass on to your kids?

I knew a developer who built a $5,000,000 strip mall.

Brand new. & it still flopped.

- Vacant units. 
- Poor traction. 
- Sold at a loss.

Why did it flop?

In my opinion?

The developer didn’t do the proper due diligence.

Development is tricky. It’s nuanced.

You have to “read the room.”

You’ve got to know the site. 
You’ve got to know the city. 
You’ve got to know what each of them need.

As a limited partner, it’s hard to know what the city needs. 
As a limited partner, it’s hard to know what the site needs.

Here’s 3 questions to ask every developer before investing:

1. How’d you conclude this asset-type for this project? 
2. How’d you identify this tract of land for this project? 
3. How’d you pick this level of finish for this project?

You want to see market research. 
You want to see local surveys. 
You want to be overwhelmed.

If you aren’t overwhelmed by the research?

PASS.

P.S. What’s your fear of investing in a development?

We’ve developed $300,000,000 worth of real estate.

Here’s a capital structure we used for several deals:

• Investors receive 100% of invested capital. 
• Then, receive an 8% preferred return on investment. 
• 20% of profits until 14% return on capital. 
• After the 14% return is reached, 
• A 10%/90% split on the remaining profit.

Otherwise known as a waterfall split.

We received some questions about the structure when I last posted about this, & I wanted to speak a bit about it today.

1. “The structure seems to favor the developer.”

- I can understand the perception, but here’s the reasoning: 
- Our investors understand the inherent risk of developing.
- The structure is meant to create downside protection. 
↳ BEFORE the GP participates in any upside returns, 
↳ 100% of invested capital is returned to investors, 
↳ & LP’s receive an 8% preferred return.

This structure prioritizes investor capital and stable returns first. We only participated meaningfully once we’ve delivered both your principal and a strong preferred return.

After that, we earn our upside through performance.

Not fees.

Curious to hear your thoughts on the capital structure.

Comment below with other structures you’ve seen.

$5,000,000,000+.

That’s how much “flex warehouse” inventory is being built right now.

Yet, so many investors haven’t heard of the asset-class.

Here’s what you need to know:

1) The niche is filling a massive need.

- These spaces are small-bay industrial properties. 
- Think warehouse/showroom/office space…
- All in one. 
- With industrial & manufacturing skyrocketing. 
- These “warehouse condos” fill the size gap.

2) The opportunity.

- There’s a large need for warehouse space, BUT
- The typical industrial warehouse is too big. 
- So smaller warehouse condos fill it. 
- Some as little as 1,250 SF.

These assets provide real opportunities for the growing small business sector to be in a warehouse unit.

Pictured is our most recent warehouse condo development.

18-units. 12 of which were sold before we were done.

Have you heard of warehouse flex spaces?

I’ve invested in over $350,000,000 worth of real estate. 
Since 1997, I’ve invested through 2 real estate cycles. 
Here’s what I attribute to me still being here: 
As a developer, 
I build what I believe is the best building for the site. 
Based on my understanding of the community. 
Based on my understanding of the market. 
Based on my understanding of the city. 
I build the best building for the site. 
You can do this in 2 ways:

1. Buy in a location you know a specific building is needed. 
- here’s what I mean. 
- you resolve to build a specific type of building. 
- let's say a flex-space warehouse. 
- you find the best land in the city you want to build in for flex-space.  
- You identify the best land for that asset. 
- You buy that land. 
- & build the flex-space warehouse.

2. Buy a good piece of land, in a good location. 
- research what would be the best building for the land. 
- then build that building.

As a developer, or as a passive investor, this is so simple. 
But I cannot tell you how many mess this up. 
Keep it simple. 
& you give yourself the best chance to win as an investor. 
Do you agree it’s really that simple?

We bought 80 acres in Franktown, CO for $7,000,000. 
Our original plan was to build 200 production homes. 
Then we did a little more digging…

Original Plan: Build 200 production homes. 
• 6-8 different design models, 3-4 different colors.
• 18-32 different types of homes to sell.

Final Plan: 19 luxury, custom homes.

Here were the top 3 reasons we made the shift: 
1. The median income for a resident in Franktown: 
↳$250,000+

2. The median new home sale price in Franktown: 
↳$1,600,000 to $1,800,000.

3. The 80 acres we bought has incredible views. 
• We felt the lot was best utilized with more open space. 
• People moved to this town to be away from the city. 
↳to be in nature
• We kept 50%+ of the land open space. 
• This showcased the fantastic views.
• & preserved the trees of the area.

We ended up selling all 19 luxury homes for over $42,000,000 in total.

Distributing over $3,000,000 back to investors.

Cuban owned 33% of broadcast.com.
Zuckerberg owns 13% of Meta.
Bezos owns 9% of Amazon.
Musk owns 17% of Tesla.

These billionaires understand what most don’t.

You don’t need to own 100% of something to make money.

You just need to choose the right vehicle.

For me, that vehicle is real estate.

For my investors?

Same thing.

I operate. They provide capital.

We need each other to grow wealth.

P.S. If you learned something. Comment below!

If you already knew,

Comment when you had the realization!

I’ve built & sold $300,000,000+ worth of real estate.

I did all that without:

- Without cold plunging every morning.
- Without giving up having some fun.
- Without journaling every morning.
- Without reading a book a week.
- Without 1000s of connections.
- Without waiting to have kids.
- Without giving up alcohol.
- Without waiting to marry.
- Without social media.
- Without giving up TV.

Here’s what you need:

- A business that provides value to people. 
- A system to provide that value at scale. 
- Sell that value for more than it costs.

That’s what builds wealth.

Curious to learn more about how we partner with investors to build real estate?

DM “Vision” to schedule an introduction call.

I’ve invested in a $48,000,000 retail center.

I’ve invested in a $21,600,000 warehouse.

I’ve invested in a $18mm mixed-use build.

We’ve invested in these assets with our own capital, investor private equity, and local banking relationships.

Here’s 2 tips I recommend every LP follow:

1) Don’t take risks you don’t know.

- Jon Gray of Blackstone has an amazing quote for this: 
- “You don’t get outsized returns without taking risk,” 
- “but we take risk we understand.”

LESSON:

As an LP, your job is to understand the risk you’re taking. 
Then make a decision based on what you know. 
Getting the process right is your goal. 
Not the outcome right.

2) Don’t invest in products not needed.

- Invest in projects with a proven need in the community. 
- What do I mean by this? 
- The GP should prove to you the asset is in demand.

LESSON:

As an LP, have the GP prove to you their asset is needed. 
So if you’re investing in an apartment development. 
What research shows this asset is needed? 
Don’t invest if you’re not convinced.

P.S. What would you add to the list?

I’ve developed $350,000,000 worth of real estate. Throughout my career, I’ve used different capital structures for our investments. 
Here’s the evolutions of capital structures I’ve used:

1) This was the structure that started it all: 50/50 Equity Split

• Capital Investors: Bring all the funds. 
• Me: Find deals, execute the plan.

This is how I started my career. 
Every deal. Every time.

2) This was the structure for my first syndication: Waterfall Split.

• Investors receive 100% of invested capital. 
• Then, receive an 8% return on investment. 
• 20% of profits until 14% return on capital. 
• After the 14% return is reached, 
• A 10%/90% split on the remaining profit.

3) This is the structure we use most often now: 2nd Position Loan

• This is our more recent capital structure we’ve used. 
↳In fact, a deal we’re raising for now is like this. 
• We secure a construction loan w/ a lending partner. 
• Then investors fund a subordinate 2nd position. 
• Typically receiving 12% on their investment.

Here’s why we’ve made the transition:

• With higher risks in development these days,
↳More costs, insurance, taxes, etc. 
• The second position loan creates a safer investment. 

I am curious to hear your experience with investment structures.

Anything unique?

I’ve developed $300,000,000 worth of real estate.

Here’s my exact strategy I deploy with every deal:

1) Find the right land (location)
- This may seem self explanatory. But the land makes the deal. 
- Especially if you don’t intend to hold an investment long term. 
- As a limited partner, understand what makes land “good.”
- This takes a level of knowledge beyond the basics. 
2) Build what fits the land. 
- This also may seem self explanatory. 
- But not every type of real estate can work on any given land. 
- If you build an Olympic swimming pool on top of a mountain? 
- You’re not going to get a lot of business up there. 
- As a limited partner, 
- Understand “why” a sponsor will build a specific building. 
- See their research. See their reasoning. 
- If you’re not impressed, don’t invest. 
3) Build it so it lasts. 
- In my nearly 30 years of developing, I’ve built everything: 
- Mixed-use apartments, industrial warehouses.
- Even large, luxury single family homes.
- With every deal, I aim to create wins for everyone. 
- The tenant, The community. The investors. 
- & in order to be able to do this over a long period of time. 
- I need a good reputation. 
- & a good reputation only comes from consistent quality. 

At the end of the day, it’s not necessarily about building the most real estate, rather it’s about choosing the right spots with the most potential.

Picking the location first, & identifying what’s best for it second.

Curious to learn more about our investment philosophy?

DM “Learn” to schedule an introduction call.

I’ve invested in a $48,000,000 retail center build .

I’ve invested in a $21,600,000 warehouse build.

I’ve invested in a $18,000,000 mixed-use build.

We’ve invested in these assets with our own capital, investor private equity, and local banking relationships.

We’ve operated in several asset-classes over the course of 3 decades.

Many investors ask what it’s like to develop.

I usually say something like: “It’s chaos.”

But that can mean a lot of things.

I decided to document my life as a developer over the course of a week.

For context, we have 8 active job sites and 2 in the planning phase.

Here’s some of what I had to deal with in a single week:

- Speaking with cities about the zoning regulations.
- Walking 8 job sites in 4 different cities.
- Meeting with planning departments.
- (Many) Meetings with architects.
- Meetings with subcontractors.
- Doing paperwork at my desk.
- Meeting with municipalities.
- Meeting with engineers.
- Meeting with investors.
- Reviewing bank draws.
- Reviewing all the debt.

A lot of work & focus goes into each investment.

From the planning, to the "fires" we put out.

We give everything into our work.

P.S. Curious to learn more about our process?

DM “Intro” and we will schedule a call.

We bought a 2 acre parcel of land for $2,000,000. 
2 years later, 
We sold 8 flex warehouse spaces so far for $6,000,000. 
Here’s 4 lessons to takeaway from this build:

1) Regulations change often, are your sponsors paying attention?

• In this case, we got caught. Between the project’s initial approval under the previous owner and my purchase, the Town of Parker had updated its regulations.

• This oversight added some time and complexity to the deal. This taught us the value of staying ahead of local policy.

• & we’ve improved our SOPs because of this specific incident.

2) Upon acquisition, the land still needed to be worked on in a few specific areas before we could start.

• Although it was nearly ready, this highlighted the importance of due diligence in the acquisition process.

• & we’ve improved our SOPs because of this specific incident.

3) Despite the 2 hiccups, we completed our project on time & on budget, with each of the 8 condos sold within 90 days of completion.

• We’d done our research into flex-warehouse space, & identified Parker, CO as a location with a major need for this asset.

• Research backed decision making on what asset to choose is a necessity!

4) We acquired this property from a developer that had largely completed the planning & permitting process.

• This allowed us to avoid holding the asset an additional year, & expedited the disposition of the asset.

I recently spoke with an investor (who’s invested $10,000,000 into real estate in 2025) about our retail projects.

Here’s why they liked retail real estate in today’s market:

For investors, retail offers stability.

Here’s the 2 specific factors they mentioned that really stuck out:

1. Retail’s resilience in a Post-COVID world

• Retail has evolved.
• It’s no longer “big box or bust.”
• Consumers want experiences. 
• Food. Fitness. Service-based businesses. 
• Those tenants aren’t easily replaced by e-commerce.
• The result?
• Steady, in-person demand from businesses that thrive on foot traffic and convenience.

2.Income Diversity & Stability

• A well-built retail center has multiple tenants.
• Each with staggered lease terms.
• This creates diversified income streams.
• And when combined with built-in rental escalators?
• Investors gain consistent cash flow insulated from short-term market swings.

I’m curious, what’s your take on retail in 2025?

Are you looking at it?

If not, what asset type has your attention?

We built a $16,000,000 mixed-use deal in 2025. 
14 retail suites. 4 residential condos. 
100% leased 45 days into owning the LAND.

I invested in the deal with my own capital, alongside passive investors, and lending relationships.

Here’s 2 lessons from the deal LPs need to steal: 

1. Understand the compensation structure you invest in
• This investment was structured as a 2nd position loan. 
• Investors received 12% on their money. 
• Distributed after the refinance. 
• We bought the property in 2024. 100% built in ‘25. 
• Our investors made money no matter the success of the deal. 
• & with development, particularly in this market. 
• That’s valuable. 
• We’ve sold 2 of 4 condos since last year. Not great, 
• But our investors were compensated anyway. 
• That’s the power of the capital structure. 

2. Understand the market you are investing in. 
• We built this property in Frisco, CO. 
• Frisco is a town of 3,000 people. 
• YET, 
• It services millions of people during the winter. 
• It’s a popular town to stay in during ski season. 
• It’s less than 10 minutes from Breckenridge. 
• Understanding the dynamics is important. 
• As an LP, 
• Understand why people in the market want your asset. 
• Understand why the market would be good for this asset. 
• Understand how the market will grow in the future. 
• If you can understand these dynamics, 
• & more specifically, 
• How these dynamics affect the investment, 
• You’re on a good track.

P.S. This picture is of my & my wife in one of the condos!

We bought a 2 acre parcel of land for $2,000,000. 
2 years later, 
We sold 8 flex warehouse spaces so far for $6,000,000. 
Here’s 4 lessons to takeaway from this build:

1) Regulations change often, are your sponsors paying attention?

• In this case, we got caught. Between the project’s initial approval under the previous owner and my purchase, the Town of Parker had updated its regulations.

• This oversight added some time and complexity to the deal. This taught us the value of staying ahead of local policy.

• & we’ve improved our SOPs because of this specific incident.

2) Upon acquisition, the land still needed to be worked on in a few specific areas before we could start.

• Although it was nearly ready, this highlighted the importance of due diligence in the acquisition process.

• & we’ve improved our SOPs because of this specific incident.

3) Despite the 2 hiccups, we completed our project on time & on budget, with each of the 8 condos sold within 90 days of completion.

• We’d done our research into flex-warehouse space, & identified Parker, CO as a location with a major need for this asset.

• Research backed decision making on what asset to choose is a necessity!

4) We acquired this property from a developer that had largely completed the planning & permitting process.

• This allowed us to avoid holding the asset an additional year, & expedited the disposition of the asset.

I’ve invested in a $48,000,000 retail center.

I’ve invested in a $21,600,000 warehouse.

I’ve invested in a $18mm mixed-use build.

I invested in these assets as the principal sponsor of the investments investing with my own capital, investor private equity, and local banking relationships.

Most LP’s investing in real estate development neglect to really educated themselves on the construction process.

Educating yourself on how construction works can help you identify quality sponsors.

Here are 3 sneaky traps to look out for on every project:

1. Value Engineering vs. “Value Engineering”

• Cutting scope, if done poorly, will gut NOI. 
• Swap out quality flooring & casework,
• Swap out quality windows & doors,
• and the building performs worse.

The result?

Lower rents, higher maintenance, and faster turnover cost more than the “savings” ever justified.

2. ADA Oversight

• One inch off on a doorway clearance. 
• or a 3/4 inch off on a toilet offset. 
• Either can trigger full rework.

ADA compliance is a legal and financial mandate. 
Miss it, 
and you’re facing demolition, delays, and liability.

3. Material Storage = Silent Sabotage

• Flooring stacked without climate control.
• Marble slabs stored outdoors.
• HVAC units left in the rain.

The result? 
On multimillion-dollar projects, poor storage can mean six figures in rework before installation even begins.

Most investors assume the danger is in design or financing.

In reality, the budget killers hide in execution details.

P.S. Do you agree?

My wife & I have 2 kids. 
One is headed to college, the other is out and working. 
If there’s anything we hope they took from us, it’s this,
• Life is too short not to pursue your dreams.

No one has exemplified that better in our family more than my wife.

With 2 kids at home, 
• She started an e-commerce business. 
• “Hot Tot.”
• A children’s hair-care product line. 
• She went all in on the business. 
• She built an online presence. 
• She was was on Shark Tank
• AND won a partnership with Mark Cuban. 
• Living out her dream in real time.

It’s moments in our lives when we’re forced to make a decision,

Focus on family. 
Or
Focus on work.

& I think my wife lived out well pursuing each.

Which to me,

Is an incredible testimony to her love for our kids.

& an incredible testimony to pursue your dreams.

P.S. What are you teaching your kids in 2026?

My last development sold for $34,200,000.

Here’s 7 lessons I learned along the way:

(That can hopefully help you invest too)

1) Understand what the land needs to be most valuable BEFORE choosing the type of asset-type to build on the land.

2) Marry someone who believes in you. Marriage is the single greatest variable of success you will make.

3) Know the inputs & outputs of your business. This will help you scale while maintaining your margins.

4) Prioritize the skill of making money before prioritizing the skill of preserving your money.

5) If you want to get bigger, get better. Better leads to growth. Bigger leads to bloat.

6) Focus your energy on a singular focus, then expand as you grow in expertise.

7) Invest in appreciating assets until you are set financially. Then buy the Ferrari.

Which lesson stuck out the most to you?

I invested in a $42,000,000 19-home luxury community.

I invested in a $21,600,000 flex-warehouse space.

I invested in a $48,000,000 retail center.

With each of these assets we invested alongside our passive investors, lending relationships & our own capital.

Some feedback we received from investors 5 years back completely shifted how we raise capital.

Like most operators, we used to raise equity. 
However, 
As construction prices increased across the board. 
Development became more expensive. 
Investors wanted more consistency. 
So we made a change.

Here’s the typical capital structure we deploy today:

• Investors invest in our deals as in a second position loan.
• The bank brings the first position loan. 
• Our company brings equity. 
• & investors collect a 12% return on their investment.

This straightforward approach ensures investors know exactly what they’ll earn based on their investment.

Keeping the process smooth and transparent for all involved.

What are your thoughts on the capital structure we use?

P.S. We’re nearly under contract on our next project. 
If you’d be interested in learn more about the deal, 
DM “Interested” & we’ll schedule an intro call.

I’ve invested in a $48,000,000 retail center.

I’ve invested in a $21,600,000 warehouse.

I’ve invested in a $18mm mixed-use build.

We’ve invested in these assets with our own capital, investor private equity, and local banking relationships.

Here’s a capital structure we used for several deals:

• Investors receive an 8% preferred return on investment. 
• Up until they receive 100% of invested capital. 
• Then, 
• Investors receive 20% of profits until 14% return. 
• After the 14% return is reached, 
• A 10%/90% split on the remaining profit.

Otherwise known as a waterfall split.

We received some questions about the structure when I last posted about this, & I wanted to speak a bit about it today.

1. “The structure seems to favor the developer.”

- I can understand the perception, but here’s the reasoning: 
- Our investors understand the inherent risk of developing.
- The structure is meant to create downside protection. 
↳ BEFORE the GP participates in any upside returns, 
↳ 100% of invested capital is returned to investors, 
↳ & LP’s receive an 8% preferred return.

This structure prioritizes investor capital and stable returns first. We only participated meaningfully once we’ve delivered both your principal and a strong preferred return.

After that, we earn our upside through performance.

Not fees.

Curious to hear your thoughts on the capital structure.

Comment below with other structures you’ve seen.

My wife & I have 2 kids.

If there’s 1 trait we want them to take with them into adulthood, it's this:

Generosity.

My wife & I have had the opportunity to both run businesses.

My wife was on the consumer product side.

(She is a Shark Tank alumnus)

(She’s a rockstar isn’t she?)

Me on the development & real estate side.

If there’s anything we’ve learned in our time as business owners,

• It’s that generosity with your resources,
• & generosity with your time, 
• Keep you grounded.

In the hustle & bustle of entrepreneurship:

• Marriage,
• Parenting, 
• & giving back,

Have been the “Big Rocks” that kept my wife & I focused on what matters most.

Curious to hear your thoughts on this post.

P.S. What are you focused on teaching your kids in 2025?

We’re buying a $1,000,000 parcel to build a $5,990,000 luxury home. 
Here’s the breakdown of the expected returns.

1) We’re raising capital for a 2nd position loan. 
2) Investors will collect a 12% preferred return. 
3) Investors will collect a 1.5% post sale bonus. 
4) Investors will receive 100% of their capital back. 
↳before sponsors collect a promote. 
5) The term length of the investment is 18 months.

Here’s a breakdown of our track record: 
1) We’ve built 200+ luxury homes in total. 
2) We built, & exited 19 luxury homes in 2025. 
↳We sold those 19 homes for $49,000,000 in total. 
↳We distributed $3,000,000 to investors. 
3) We’ve built $350,000,000 developments over 35 years. 
4) We’ve managed 30+ syndications in our history.

We’re raising the capital as a 506(c) offering. 
**for accredited investors only**
We’re raising $1,000,000 with a min. of $100K.
If you’re interested in investing, 
DM “Interested” to schedule an introduction call. 
Or click the link below: 
https://lnkd.in/gT6WYYcA

P.S. Pictured are 3 luxury homes we completed last year.

I’ve developed $350,000,000 worth of real estate.

I can boil my strategy down into 2 key points: 
1. Find the right land. 
2. Build what fits. 
Here’s a breakdown of those 2 points:

1. Find the right land. 
• Real estate’s value can be summed up in 3 words. 
• Location. Location. Location. 
• You hear it all the time, but here’s what this means: 
• When the local market inevitably hits a correction, 
• People still need real estate, 
• But they often buy only in the best locations. 
• This is why we concentrate our efforts in 1 state, 
• Colorado. 
• Because we know where the best land is, 
• & cater our focus to those areas.

2. Build what fits. 
• Next, just because we may buy the right land. 
• Doesn’t mean we can build anything there. 
• We have to cater the build to the community. 
• This is critical. You must get this right. 
• Even with a new build, 
• If the community doesn't want it or need it? 
• The investment won’t do well.

P.S. We’re currently raising capital for a luxury home build.
If you’re curious to learn more about our investment. 
Comment or DM “Invest” to schedule a call.

Our last flex-warehouse project sold for $6,000,000.

Here’s 7 lessons I’ve learned from building this asset class, and scaling Vision Development along the way:

1. The best projects start with the market in mind. You can’t just build and hope it leases. You have to know the unmet demand of the community & build according to the demand.

2. As an LP, the alignment of your risk tolerance with the capital structure & business plan is almost as important as the track record of the GP. 

3. A flex-warehouse is proof that you don’t need complexity to create value. Simplicity is a profitable business model.

4. As an LP, you must understand the development you invest in is only as good as the team you invest with.

5. The business is the tenant. As an LP, invest with GPs who understand what business they are in.

6. Family & faith come first. What you work for is more important than what you work on.

7. The profit is in the small details.

Which lesson stands out most to you?

I’ve invested in a $48,000,000 retail center.

I’ve invested in a $21,600,000 warehouse.

I’ve invested in a $18mm mixed-use build.

We’ve invested in these assets with our own capital, investor private equity, and local banking relationships.

Here’s 2 tips I recommend every LP follow:

1) Understand why you trust the sponsor you invest with. 
• Warren Buffett puts it this way: 
• “Risk comes from not knowing what you’re doing.”
• In the context of investing with a sponsor, 
• It means knowing why you trust them. 
• Is it their track record? 
• Is it their team? 
• Is it them? 
• Knowing why you’ve made a decision is an underrated reason to determine if you are making the right decisions with your investing.

2) Understand why a sponsor is building an investment. 
• Just because a building is new & shiny, 
• Doesn’t mean it will succeed as an investment. 
• The main reason investments fail: 
• the area doesn’t need what the building provides. 
• Ask the sponsor: 
• “Why are you building this asset in this location?”
• They need to have an educated answer for you. 
• Be overwhelmed by their research. 
• It’s the foundation for all great investments.

P.S. Was this helpful? Which tip was the most helpful?

I’ve invested in a $48,000,000 retail center.

I’ve invested in a $21,600,000 warehouse.

I’ve invested in a $18mm mixed-use build.

I’ve invested in these assets with our own capital, investor private credit, and local banking relationships.

Here are 2 tips I recommend every LP follow:

1) Are there escalation clauses in the GPs contracts?

- We built a $19mm subdivision in Cherry Creek, CO. 
- We broke ground in late 2019. Then COVID hit. 
- Lumber prices went through the roof. 
- We absorbed the costs. 
- But we should have negotiated that with the supplier.

LESSON: 
As an LP, you must understand the risks to your return. 
Then have the arsenal of questions to back it up. 
This knowledge will mitigate your risk.

2) Does the GP have multiple suppliers for material?

- We built a $16mm mixed-use building in Frisco, CO.
- Our main supplier couldn’t get us our material. 
- We pivoted, which allowed us to finish. 
- Both on time & on budget.

LESSON: 
As an LP, time is money. & when it comes to material? 
That may be the biggest culprit to holding up a deal. 
Does your GP have sufficient contacts?

P.S. What would you add to the list?