Hello Mr. Collier,

I hope all is well with you.
When you have some time, could you please answer the following questions?
Thank you so much for your time, consideration and wisdom.

Do you believe that there is another sector of commercial real estate that is more profitable than owning multi family?

On a risk adjusted basis I believe that apartments is the best sector. Other sectors may have the allure of higher short term returns but carry greater risk. When the inevitable recession comes, retail can go dark and office can go “see thru” but folks still need a place to sleep every night. That said, they can double up or head on home and on rare occasions cities (i.e. Detroit) can empty out and if US population ever levels off or declines all bets are off.

What makes one a good leader?

There are many styles of leadership and many good books on the subject. I’d say someone who treats her followers with respect, knows his subject, is confident but still coachable (i.e. listens, open to feedback) and doesn’t ask others to do what she would do herself. Oh yeah, remember: “Officers Eat Last!”

From your experience and exposure, what is the disadvantage to accepting the following forms for capital: private capital or venture capital or equity capital?

The terms are not completely distinct and there is no precise universally agreed upon definition.

Private capital often means capital from a High Net Worth Individual ($10 to $30M of investable assets, though not necessarily liquid assets) or Ultra HNW ($30M+) or a Family Office. However private capital can also mean any capital from any non-publicly traded company or non-government entity.

Venture Capital is usually associated with startups and rapid growth opportunities, not real estate.

Equity Capital used in context of the above terms sometimes refers to more patient, long term money invested to help an existing business grow or turn around. However, I’ve heard it used most often simply in contrast to Debt Capital i.e. ownership capital v. capital acquired via a loan.

As always, I share what I most want/need to learn. – Nathan S. Collier