Salvator Buscemi is the author of Making the Yield, a managing partner in Dandrew Partners and runs the Oasis Fractionalized Real Estate Equity. Mortgage Brokers took to the streets to get funding for homes in pre-foreclosure and that was the start of the real estate crisis. Investing with short money people (those who invest $50,000 and under) can be costly to the entire deal. Jason and Salvator agree on most things and being cynical is the best way to be in business.

Key Takeaways:

[1:48] Hard money lending uncovered
[5:32] No exit strategy on Sub-prime loans
[6:30] Funds to buy other funds
[7:59] Inexperienced fund managers
[11:50] 10 commandments of investing
[13:15] The rack rate secret
[15:28] Operator should be local to the asset
[19:00] Crowdfunding
[20:40] Short money?
[23:59] Federal Reserve’s no yield environment
[27:25] Massive interventions by Govt’s and Central Banks
[30:50] Resume of Bernie Madoff and others
[32:45] It’s all political
[34:20] Golden Age of Real Estate
[35:15] Intimate money management
[37:16] Fund Manager should skin in the game
[40:00] Where are you in the capital structure?
[42:52] Makingtheyield.com, 1st 20 are free

Tweetables:
“When you give them a blank check that’s when fund managers fail.”
“It’s easy to swing for the fences when you have someone else’s money in which to do it.”
“The operating agreement is really a pre-nuptial. Nobody reads it until the divorce.”
“Cynical is the mindset you need to have today to be a successful investor.”

Mentions In This Episode:

Dandrew Partners
Oasis Fractionalized Real Estate Equity
Making The Yield – Book
Caliber
jasonhartman.com/store