))
How To Identify Great Operators | Insights From $3.2B Under Fund Administration w/ Lance Pederson
Manage episode 376530024 series 3462337
Content provided by Pascal Wagner. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Pascal Wagner or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.
If you’re looking to deploy money to generate cashflow and you’re not 100% sure who you want to trust your money with, I highly recommend listening to this episode.
In this episode of The Legacy Wealth Podcast (soon to be rebranded to the Grow Your Cashflow Podcast), I interviewed Lance Pederson who grew a fund administration company to over $3.2B in assets under administration that helped various fund operators run their fund properly.
He has this unique point of view where he’s been able to see what great operators look like across the industry because he’s helped 100s of investment firms set up their funds.
In this episode, he covers:
- His insight into what questions he asks to determine who to invest with
- Challenges faced by operators transitioning to the fund model.
- And investment terms to look for with an investment firm launching their first fund
// About The Guests:
========================
Lance is the co-founder of Resonance Industrial Fund which was formed to invest in Class B industrial properties throughout the US Heartland. Their objective is to provide high net worth individuals and small family offices with monthly double-digit cash flow, growth and the benefits of depreciation. He began investing in private investments in 2022 and had invested over $2M in over 8 deals as an LP.
Pascal Wagner is the founder of the Grow Your Cashflow Network which was formed to help accredited investors learn how to earn consistent passive income from private investments. Previously, he was the Fund & Portfolio Manager at Techstars, making over 300 follow-on investment decisions primarily 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:
========================
Welcome to The Legacy Wealth Podcast where we help accredited business owners become educated & get access to, private investments that the wealthiest investors in the world utilize to grow their net worth. We do this by providing insight & access to successful fund managers & investors across multiple asset classes.
// Links Related To This Episode:
========================
- Learn how to earn passive income from private investments: www.growyourcashflow.io
- Get access to our deal database of all 506(c) cashflow opportunities we come across at: https://growyourcashflow.io/investor-club
- Follow Pascal Wagner on Social: www.investwithpascal.com
- Follow The Legacy Wealth Podcast on your favorite platform: https://legacywealthpodcast.transistor.fm/
- Watch the show on YouTube: https://youtu.be/MCuHzzFCYaE
- Reach out to Lance Pederson on Linkedin: https://www.linkedin.com/in/lancepederson/
- Learn more about Resonance Capital Group: https://www.linkedin.com/company/resonance-capital-group/
// Key Time Stamps & Topics
========================
Time Stamps:
00:00 - Intro
00:58 - Background of Lance Pederson and his involvement in private investments.
02:15 - Explanation of the Heartland term and its significance.
02:30 - Importance of the Heartland's transportation and infrastructure.
03:15 - Lance's background and expertise in advisory and alternative investments.
03:27 - Consulting LPs and advising on capital structures in the alternative investment space.
04:13 - Launching a fund administration firm to oversee investments
05:00 - Importance of fair and equitable fund administration and oversight.
06:00 - Learning complicated concepts quickly to provide effective advice.
06:45 - Identifying trends in investment preferences, such as multifamily assets.
07:15 - Identifying potential partners moving from single asset syndications to blind pool funds.
07:45 - Emphasizing value-add multifamily deals for stability and operator impact.
08:45 - Addressing volatility concerns by focusing on less risky market
09:15 - Assessing fund dilution dynamics and protecting LP interests.
12:15 - Waiting for fund operations to be up and running before investing.
12:52 - Lance talks about the mechanism of multiple closes in fund structures.
13:15 - The difference in asset dynamics between ATM funds and real estate funds.
14:00 - Lance explains subsequent commitment charges and their purpose.
15:00 - Fluctuating asset values as an anti-dilution mechanism.
15:45 - Exploring dilution mechanisms tied to capital invested and share classes.
16:15 - Lance emphasizes the importance of operators defending their fund terms.
17:00 - Evaluating sponsors based on transparency and information sharing.
18:00 - Lance emphasizes the ability to provide information that supports claims.
19:00 - The importance of sponsors being transparent with their investors.
20:00 - Evaluating sponsors' willingness to provide requested information.
20:30 - Identifying sponsors who demonstrate understanding and transparency.
21:30 - Operators' struggles with complexity and fund management responsibilities.
22:15 - The market's upward trend can make anyone appear successful.
23:51 - Challenges faced by operators transitioning to the fund model.
25:15 - Balancing deep value-add deals with cash flow-oriented investments.
26:30 - Selecting different types of properties to meet fund strategy.
27:00 - Differentiating between evaluating one deal and managing a fund portfolio.
28:00 - Transitioning from individual deals to fund management complexity.
29:01 - Evaluating potential fund investments based on deal volume.
30:00 - Consideration of the diversity and quantity of suitable deals.
31:30 - Ensuring the operator's deal selection aligns with the fund's objectives.
34:36 - Asking about issues encountered in the fund administration world and the transition to the operator side of industrial real estate.
35:00 - Lance's transition from being an advisor to an operator in industrial real estate.
36:00 - Defining the ideal buy box for Heartland Industrial Partners
38:00 - Explaining the attributes of class A industrial properties.
39:00 - Discussing class B industrial properties in terms of age and technology.
40:00 - Describing the attributes of class C industrial properties, including ceiling height and loading doors.
42:00 - Discussion about amenities like cold storage and climate-controlled spaces.
43:30 - Discussion on roofs in need of repair or in good condition.
45:00 - Importance of being close to interstate highways and target markets.
46:00 - Broker relationships and their significance in the industry.
46:30 - Lance discusses the quality of tenants and their impact on building value.
47:00 - Forced appreciation strategy by signing leases before closing deals.
47:45 - The process after receiving property details from the broker
48:15 - The role of the broker in bringing deals to the table.
49:30 - The power of broker relationships and their influence in the market.
50:08 - Outro
34 episodes
Share
