March 15th, 2011 13:55 EST
The signature line from one of my favorite movies, Law Abiding Citizen, is "you can`t fight fate". I`m not a fatalistic person and certainly don`t subscribe to that philosophy when it comes to living my life. But, I do believe that we all make our own luck and that luck can be something that we control depending on how we lay out the cards.
My business philosophies are pretty clear. And I am especially firm on the viewpoint that to succeed when you raise money and do deals, you must do deals with people who are in a similar ballpark as yourself. Minor leaguers don`t play with major leaguers. Giant companies typically don`t do business with small ones unless there`s some incredible overriding reason to ignore those rules. In real estate, it`s exceedingly rare that those rules ever change.
For that reason, I always caution the attendees of our Deal Making Symposium and Syndication Seminar program, to do business with individual accredited investors and to avoid doing business with whales. Whales can include: ultra high net worth individuals or they can be private institutions, hedge funds, equity funds, etc. The reason is simple. Always ask yourself what do they need me for "? If you have something that they cannot access, then you`ll be in a position to call the shots.
In technology, if you invent something extraordinary, even the biggest companies will give you what you want. But in real estate a deal`s a deal and it`s rare that you have something that is that over the top.
I got a call this morning from an old friend. He is well aware of my philosophy about dealing with whales and he sent me an e-mail and said to me that he`s working out a giant deal with a hedge fund. Unfortunately, they`re grinding him terribly. They`re moving slow. They`ve knocked his participation down by 60% and they`re not allowing him to call the shots.
I reminded him that big guys would rather make you an employee because they don`t really have any need to treat you like a partner, especially a partner with a large share. He conceded that this is exactly what is going on and that he should have taken my advice more seriously.
I strongly encourage everyone who is doing deals, to think very carefully about what ballpark you play in. Make sure you do business with people who are in a similar ballpark and more importantly, ask when it comes to partner, investors or others "what do they need me for?" The better the answer, the better the deal that you`re going to strike and the more satisfied with the outcome you`re going to be.
If you have an opinion or thought on this topic, please write a comment on my blog on the form provided. Let us know what you think and if my thoughts resonate with yours. Our followers enjoy reading what others think. Send a link to this article to one or more of your friends and get them to become one of our subscribers. This will help us expand our circle of influence and allow us to share this and other great material with your friends. Thank you for being one of our loyal readers. We appreciate you and we are rooting for your success.
Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenue and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker, advisor and astute investor. Joel is President & CEO of Bullseye Capital (www.bullseyecap.com), a full-service real estate company that supports owners and buyers of real estate assets with brokerage, leasing, property management, and mortgage services. Joel is also the founder of the Bullseye Capital Real Property Opportunity Fund, LLC (www.BullseyeCapFund.com).
The company also provides investment opportunities to accredited investors. A leader in real estate syndication, the company invests in properties and offers seminars to assist others in acquiring the skills needed to raise syndicate capital to acquire properties. Imagine knowing how to pool funds to purchase any real estate investment, whether it is for single family, multi-family, commercial, or another kind of investment property. For full information, go to www.syndicatefast.com.