How To Draft An Investment Thesis | Devin Elder's Advice for LP Investors

Grow Your Cashflow Podcast

Do you see a lot of deals, but you’re not sure which one is right for you?

You either jump on deals too early or you have the case of analysis paralysis.

I used to have this myself. I felt overwhelmed with what to invest in, I didn’t know what questions to ask each fund manager, and I didn’t feel like I had control over my financial future.

That all changed when I created a personal investment thesis.

In this episode of the Grow Your Cashflow Podcast, I interviewed Devin Elder @ DJE Texas Management Group to talk about the the art of crafting a personal investment thesis that you’ll actually use. In this episode we cover:

• How to craft & create an investment thesis for financial freedom
• How to play the games that wealthy people play
• What 3 things to expect out of your fund manager when you invest
• And so much more…

// About The Guests:

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Devin Elder is the Founder & CEO of DJE Texas Management Group, a vertically integrated multifamily investment firm based in San Antonio, Texas. Since 2012, the firm has completed hundreds of successful investment projects including many full cycle multifamily investments. Devin is a Principal in over 2,000 doors of multifamily. Devin is a Pilot, Podcast host and owner of a Real Estate consulting firm, a brokerage, and the DJE Foundation, a 501(c)(3) non-profit supporting disadvantaged children in Texas and the Philippines.

Pascal Wagner is the founder of Grow Your Cashflow which was formed to help accredited investors learn how to earn consistent passive income from private placements. Previously, he was a Fund & Portfolio Manager at Techstars, making over 300 follow-on investments for the Techstars Ventures ‘17 and ‘21 Funds, he founded Walkthrough, which was acquired by PlanOmatic in 2019, he founded Online Ad Labs which was acquired by PosterBrain in 2016, and he has owned a growing portfolio of real estate properties across the United States since 2013.

// About The Show:

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Welcome to Grow Your Cashflow Podcast where we help accredited investors learn how to earn consistent monthly passive income from private placements.

If you're uncertain about where to invest for dependable returns, have limited access to exclusive opportunities like private placements, or are looking for expert insights and guidance on generating consistent income across various asset classes, then this show is tailored just for you.

By listening to this show, you'll achieve your passive income goals faster by learning:

🚀 Proven strategies to secure monthly passive income.

💡 Expert insights from successful fund managers and investors.

🌐 How to access exclusive opportunities in private placements.

📈 Techniques to diversify across multiple asset classes for a robust portfolio.

💰 The well-guarded secrets of wealth accumulation used by the world's elite.

Try listening to our most popular episodes on your favorite podcasting platform or on youtube. We look forward to you joining our community of investors. You’ll be one step closer to growing your cashflow!

// Links Related To This Episode:

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- Learn how to earn monthly passive income from private placements at: https://hubs.ly/Q023z8mg0

- Get passive income opportunities delivered to your inbox every week by joining our subscriber list at: https://hubs.ly/Q023z93L0

- Follow Pascal Wagner on your favorite social media channel: http://investwithpascal.com

- Watch the show on YouTube: https://youtu.be/e_k6UKtAxeM

- Subscribe to the Grow Your Cashflow Podcast on your favorite platform: https://growyourcashflow.transistor.fm/

- Reach out to Devin Elder on Linkedin: https://linkedin.com/in/devinelder

- Learn more about DJE Texas Management Group: https://djetexas.com/

// Key Time Stamps & Topics

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00:00 - Intro

01:41- Devin Elder's Background and role

03:00 - Key Topics for this episode

03:56 - Devin's transition from corporate to entrepreneurial life.

04:46 - Advantages of being an entrepreneur, including tax benefits and leverage

05:27 - Devin's journey from corporate to real estate investing, starting with single-family homes.

07:00 - Explanation of the BRRRR (Buy, Renovate, Rent, Refinance, Repeat) method for real estate investment.

08:00 - Transition from single-family homes to multifamily real estate investing.

09:00 - Introduction of investors and equity sharing in multifamily investments.

10:00 - Overview of Devin's current real estate projects and commitment to ensuring that everyone involved wins

10:55 - Core values centered around ensuring everyone involved wins

11:15 - The satisfaction of being an entrepreneur

13:11 - Devin distinguishes between his personal investment strategy and managing investor capital. The importance of track record in investor capital.

14:18 - Devin describes his aggressive investment approach, pushing funds back into deals, discusses his early strategy in single-family and later shift to multifamily

16:53 - Devin Elder explains how multifamily valuation is based on net operating income and cap rates

19:03 - The need for diversification to avoid dependency on multifamily deals

23:09 - The benefits of diversifying into land investments, offering short-term debt options to investors, the benefits of diversifying into land investments, offering short-term debt options to investors.

24:25 - The rationale for being in multiple asset classes and the value it brings to investors

26:00 - The need for LP investors to consider their investment thesis and focusing on defining investment outcomes and suggests starting with education.

27:30 - Devin's advice for LP investors to take their time, seek education, and consider joining investment discussion groups

28:35 - When did Devin developed his investment thesis and the importance of educating oneself before diving into investments.

29:30 - Devin encourages investors to talk to others and form discussion groups for sharing ideas.

30:00 - Devin recommends not rushing into investments and taking time to understand terms and structures.

30:32 - Devin suggests looking at online platforms like Crowdstreet for educational resources.

31:04 - Devin underscores the significance of repeatable, proven business models in investments.

31:15 - Devin distinguishes between a risk-adjusted return and a high-risk, high-reward approach.

32:00 - Devin advises potential investors not to hurry and assures them that opportunities will always be available.

32:15 - Devin recalls his experience with venture capital investments and the associated high-risk profile.

33:27 - The importance of thinking critically when evaluating investments.

34:45 - The erosion of currency and the need to understand and play financial ...