Alternative Access - March 2020

... continued from Back

Before that opportunity makes it to your desk, we’re committed to the deal and we’re investing in it.

We’ve already incurred significant costs to insure — belts, suspenders, and life jackets.

Some Updates and Good News


We made the conscious decision in September to shut down our funds to new investors so we could concentrate on building out our operating platform, from the website to the entire investor experience. If you have a question or need to see a tax statement or schedule of distributions, this will be fully automated. We want to make the process easy for you. In 2019, we achieved a lot of notoriety and success and, with that, conviction, which is why I decided to reinvest into something that, frankly, not too many other cross-asset managers can provide: a fully integrated cross- asset management platform that is very easy for you to use. Anybody can buy software or a service and throw money indiscriminately at the issue. However, you’re the users who need the platform, so I wanted it to be very easy to navigate. I don’t care if George Soros himself uses a program — if a 65-year-old widow can’t download a K-1 form intuitively, it’s not worth the time or effort, and it solves nothing. If you want to know why this is important to me, it’s because I had to assist my mother with similar tasks for years, and it was prohibitively painful and time-consuming. Removing friction is just good business for everyone involved.

Reno is by far the city with the highest growth potential in the entire United States. Lots of tax refugees from northern California have been migrating in. It’s to the point where it’s about seven times more expensive to rent a U-Haul one way from San Francisco to Reno than it is on the return. For about a year now, we’ve been preparing for what is billed to be the single most-valuable piece of Qualified Opportunity Zone land in the entire 48 contiguous states. This 4,300-acre parcel has a bit of a story to it too, as it was tangentially mentioned in an October 2017 New York Times article (NYTimes. com/2019/10/26/business/michael- milken-trump-opportunity-zones. html), peppered with all sorts of things salacious, sensational, and subjective. With all that aside, what makes this unique parcel especially valuable is that it has the flattest 4,000 contiguous acres in all of Reno and a few notable names on it. It will be developed in several phases. It’s perfect for industrial — meaning more high-quality credit — tenants and, most importantly, those coveted data

centers. Expect to hear more on this quite soon.

For those wanting to know what a Qualified Opportunity Zone is, I wrote an article for Forbes ( theyec/2019/11/19/tax-free-windfalls- a-definitive-look-at-opportunity-zones) that explains who is qualified to co- invest alongside us and who isn’t. In short, you will need to have capital gains to be allowed to invest into any opportunity zone, and if you’re looking for a reason to sell some of that high- flying Amazon or Apple stock, this could be your excuse. I mean, we’ve had 30% up years. Can it keep going? Probably. It depends on where you want to be in 10 years. Remember, stocks are now affected by illness and disease that occur nowhere near where you live. It’s the result of an interconnected global economy and financial system. And that is something President Trump won’t be able to contain, I’m afraid. Imagine losing another decade of savings and already compounded 30% returns because of something you couldn’t control. Again, we are targeting April or May for a soft launch of the first phase of this project.


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