Alternative Access - April 2020

... continued from Back

Trump knows this and will firmly place the incredible pressure on China, branding it all kinds of bad things as he continues to browbeat Beijing using his patented “Mean Girls” diplomatic conventions to do what I believe is his lifelong mission now: avoiding any possibility of a Thucydides’ trap. All the while, Hong Kong continues to smolder, perhaps with a sharp eye to see how President Xi responds. Think about it: Anything short of a humane solution and China risks Trump effectively branding China as a cheater for as long as he can tweet (and thereafter). This could effectively influence entire industry migrations to other areas of the world where there are “good people.” The Chinese are not necessarily cheaters themselves, but the industry could migrate to people perceived as better than the Chinese in the eyes of the world. In effect, you could argue that the coronavirus epidemic could be the tipping point for the supply chain leaving China. What does this mean? Capital flowing into the U.S. will continue to flow under Trump. It’s the safest place in the world for rich people. The one thing Trump can’t do is stop a protracted massive sell-off that should happen as a result of a Black Swan. Now, back to Twitter.

A Blast From the Past

Some of you may remember my old partner and general counsel, Fred Waid. Well, Fred has come back to the convent and has been based in our Las Vegas office for a while now. Fred and I did an institutional raise back in 2011 and ran, at the time, what was considered to be one of the more prolific special situations funds that focused on distressed commercial real estate that year. For those interested, you can go to to see what this structure looked like. All the fun we had with this was the reason for I wrote a book afterward called “Making the Yield: Real Estate Hard Money Lending Uncovered.”

taxes, which is why we promptly moved from our office at 156 5th Avenue to Las Vegas. Fred is a trusted confidant. I am very happy, and we are very fortunate to have him back. We’ve already started the year off with a bang with Orange County and a few other things in our venture fund. Our path forward is to remain doing what we’ve been doing for almost the past 20 years, investing in world- class statement assets managed and operated by experienced and audited operators.

Candidly, if I can’t brag about it, you’re not going to hear about it.

The barrier to entry is a little higher, but so are the risk-adjusted returns — accounting for strong operator experience. The peace of mind you’ll get, frankly, you’re not going to get in too many other areas today. Thank you for your consideration. I value your trust and greatly appreciate our relationship. If you need to schedule a time to talk with me while I’m hunkered down and not traveling, please feel free to visit bit. ly/2OM1tem to access my schedule.

It is also where I learned how it feels to be emancipated from New York


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