Birch Street Capital Corporation

03/25/2020

03/23/2020

"some companies will rebound, some won't survive"
David Tepper

03/10/2020

I like to read John Culbertson of Cardinal Partners bi-weekly real estate oriented articles. These have been named the "Best Newsletter" by REMAS, an excellent status. Check out cardinal-partners.com

A few of the points out today needed to be shared (daily!)
. the top mistakes that high-net-worth investors make when investing in commercial real estate.... focusing too much on returns to not understanding the local market, these big-dollar investors are missing out.

Failing to look long-term.

Too often investors just focus on returns. And sure, returns matter. A lot. But high net-worth investors are better off considering the big picture of a deal. Is the return commensurate with the risk? How does the underwriting hold-up to a range of forecasts?

Think about an exit at least seven or years out.

Forgetting the taxman - or woman.

If nothing else, HNW investors should focus on after-tax returns. I find these investors think of taxes for a multitude of other scenarios, but when it comes to real estate investing, they aren’t giving the subject enough thought.

Consult with your accountant before you begin the real estate game.

Not understanding the local market.

Oh, how many times have I seen this. You get someone who knows the New York City market intimately and they think "Pikeville, NC" will be an easy nut to crack. But not so. There are so many intricacies tied to local situations that can screw up a deal.

HNW investors should listen to local experts. They need a local yokel to walk them through the litany of nuances that make a market unique, or partner with an expert.

Ignoring how important solid property management is to real estate investing.

Owning a property is one task, a separate one is managing it. It is all too often viewed by high net worth investors as an afterthought. To maximize one's investment, a first-class asset manager is worth their weight in gold.

Property Managers and Asset Managers typically charge 3-5% depending on the size of the asset and the complexity of management.

02/28/2020

October 19, 1987.At closing, the Dow stood at 1,738.74, down 508 points.

Wall Street has been no fun this week, for sure.We all need to remember that the economy has good, great, weak, and horrible conditions time after time. Those of us that have been through a few recessions didn't like the market Thursday, but its good to recognize that today's world is just a repeat.

Prices on the ticker tumbled, and panic took over. Could it happen again?

02/25/2020

I really enjoy planning for lectures here, challenging and detailed. Today was both Historic Tax Credits and Qualfied Opportunity Fund structures. The students here are bright, serious, and many are focused on public polices. A great day!!!!

02/21/2020

The Hospitality and Tourism Alliance of Charlotte had about 2,000 fabulous business people at their annual gala--great event!! We all need to recognize that this group of people has help transition Charlotte into a major growth and destination US city.

My 30+years pal Mohammed Jenatian helped form this group and is now the President and all time leader. He served with Governor McCrory and has a major role in Charlotte's wonderful position.

02/21/2020

Charlotte Hospitality and Tourism Alliance annual awards dinner. Wow--only about 2,000 of the Charlotteans that have driven this city to #1!

My 30+year pal Mohammed Jenatian formed this group, now President. One of the most positive influences on Charlotte;s stunning growth.

02/19/2020

Birch Street Capital usually doesn't get involved with residential real estate, BUT this report on local growth encourages our dealing with business expansion.

Americans appear to be increasingly seeking out affordable living areas, as prices soar in some markets.

02/16/2020

“Negotiations are not about winning and losing, but expanding the pie”.

My favorite statement from Richard Shell, Wharton faculty member specializing in negotiating,

02/12/2020

Three Rivers Behavioral Health
2900 Sunset Boulevard, West Columbia SC

One of our best deals ever--and interesting.

In bankruptcy, no patients, 12 staff members were closing the doors. A team of three of us bought the largest acute psychiatric facility in South Carolina! Adjacent to 508 bed trauma complex Lexington Medical Center (www.lexmed.com).

We bought CONs for 84 beds, added 32 for a total of 116. Got it back on its feet and sold to the HCN from Nashville.

Just because an asset isn't working doesn't mean we won't fix the problems. And and make our partners very, very happy!

02/08/2020

There is no trust, no interaction that can be built via text. It dies take time to meet with potential sources, clients, partners but that does enhance your likely success.

02/04/2020

Good interview. One of the most interesting points was the WeWork collapse affected the wrong conclusions. Co-working is fine (if done correctly) and over the next 5 years could grow from 1% of for lease office space to >10%. Especially as the trend will be to institutional tenants, not individuals. Interesting and seems to be the scenario we see daily.

CEO Bob Sulentic discussed the commercial real estate market on CNBC’s “Squawk on the Street.”