To Hold or to Sell? That is the Question - EP.34

To Hold or to Sell? That is the Question - EP.34

Author: Brad Johnson February 7, 2019 Duration: 17:05

In this episode, we’ll take you below the surface for a much deeper analysis on all the variables you need to take a look at before closing the deal.


Key Takeaways:

[:13] You’ve been running a great piece of real estate for the last two years and then suddenly you get a fantastic unsolicited offer… so, what do you do?

[1:06] Brad walks us through how he thinks about a hold vs. sell analysis.

[4:23] Brad outlines some more variables to think about in the hold vs. sell analysis.

[5:59] What happens if you think you can grow the asset and sell it for 3x your investment, but it takes another 3 years?

[8:08] After factoring in all the risks, and still feeling 100% confident you will achieve a positive outcome, should you take the deal? What else should you take a look at?

[9:47] The third piece of information that is important to factor into a hold vs. sell analysis: what can you do with the money you’ll be making? And what happens if you’ve brought in investors?

[12:16] So, what do you do? Is there a right answer?

[13:25] Another important thing to think about beyond the numbers.

[15:48] Recapping the main points of this episode.


Mentioned in this Episode:

Internal Rate of Return (IRR)


For More on The Alternative Investor, Check Out:

TheAlternativeInvestorShow.com


Hosted on Acast. See acast.com/privacy for more information.


For those looking beyond the ticker symbols, The Alternative Investor explores the tangible and often complex world of assets that don't trade on a public exchange. Host Brad Johnson, drawing from his experience at Evergreen Capital, believes a well-rounded portfolio often exists outside the daily noise of the stock market. This podcast digs into the practicalities of private equity, real estate, venture capital, and other non-traditional avenues. While these opportunities can offer different paths to growth, they come with their own unique set of questions and due diligence. Each conversation is geared towards demystifying that process. You'll hear detailed discussions on how these investments actually work, the structures involved, and the long-term mindset they require. The aim isn't to offer quick tips, but to provide a clearer framework for evaluation. Johnson breaks down real-world cases and strategies, focusing on the critical factors that can influence an outcome. It’s a resource for anyone considering how to allocate capital towards assets that aren’t as easily quoted or sold, with the understanding that higher potential returns often walk hand-in-hand with increased complexity. Tune in for a straightforward take on building resilience and potential through alternative holdings.
Author: Language: English Episodes: 50

The Alternative Investor
Podcast Episodes
You Just Bought Real Estate, Now What? - EP.39 [not-audio_url] [/not-audio_url]

Duration: 24:55
We’ve spent a lot of time on this podcast telling you how to find alternative investments — how to buy them, how to raise money for them, and more — but we haven’t talked a lot about what to do after you close. It’s real…
We Talk to a Guy Who Bought a Business with an SBA Loan - EP.38 [not-audio_url] [/not-audio_url]

Duration: 43:50
Just as this title says, we talk to guy who bought a business with an SBA loan! Nick Haschka is an entrepreneur and investor who lives in the San Francisco Bay Area, with his wife and two kids. He owns a small business c…
Should You Get an MBA? - EP.37 [not-audio_url] [/not-audio_url]

Duration: 29:12
We often get emailed by 25-35 year olds interested in getting into private equity, venture capital, or real estate private equity, wondering if it’s worth it or not to go get an MBA. Both Brad and I have our MBAs (which…
How to Buy a $2 Million Business for $200K - EP.35 [not-audio_url] [/not-audio_url]

Duration: 21:52
Today’s going to be a fun episode because we’re really excited to talk about today’s topic: SBA loans.If you think you need $1 million to get started in buying a company then this episode is for you. You don’t always nee…
What is a Covered Land Play? - EP.33 [not-audio_url] [/not-audio_url]

Duration: 17:27
oday’s episode is about Covered Land Plays! A Covered Land Play is when you buy a property based on the existing use of that asset… but, what you’re really buying for is the land (in the hopes that someday it’s going to…
Don't Be Fooled By EBITDA - EP. 32 [not-audio_url] [/not-audio_url]

Duration: 13:41
Today we’re talking about an incredibly important topic: the dangers of mistaking EBITDA with Cash Flow.It’s so tempting when you’re looking at a lot of these small businesses to buy and you see this metric called EBITDA…
What is a Search Fund? - EP.31 [not-audio_url] [/not-audio_url]

Duration: 30:05
In this week’s episode, Brad and I discuss search funds! We explain what a search fund is (and who’s funding them), the four main steps, how they originally got started, who they’re great for, and why you should use one.…
How to Raise 10 Million Dollars - EP.30 [not-audio_url] [/not-audio_url]

Duration: 35:44
In today’s episode we answer one of the questions that we probably get most frequently from people looking to break into the industry, and that is: ‘Once I’ve found the deal, how do I make it happen?’ Using the example o…