Episode 63: Understanding Debt and Credit Funds with Michael Episcope

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Michael Episcope co-founded Origin Investments in 2007. Michael is co-CEO, co-chairs the investment committee and oversees investor relations and capital raising. Prior to Origin, Michael had a prolific trading career and twice was named one of the top 100 traders in the world by Trader Monthly Magazine.

Connect with Michael Episcope

https://origininvestments.com/

In this episode of Tech Equity and Money Talk, Michael Episcope from Origin Investments discusses the rise of credit and debt funds in the private equity market.

He explains that these funds invest in a part of the capital structure that's more protected than equity, aiming to provide stable income through yield.

Listeners are advised to be cautious of inexperienced managers rushing to invest due to the pressure of closed-end funds.

Credit funds provide stable income for investors by investing in a part of the capital structure that is more protected than equity. These funds typically invest in senior debt or leverage senior loans in some way, with the intention of generating stable income through yield rather than appreciation in the asset itself.

This makes credit funds a valuable alternative investment option for investors looking for consistent returns.

In this episode, we talk about:

• Track Record and Experience: Evaluating the track record and experience of fund managers is paramount. Investors should seek out managers with a proven track record and a proficient team for deal origination. Understanding the source of deals and the investment strategy of fund managers is essential in assessing their credibility.
• Strategy and Competitive Advantage: Investors must ensure that the fund's strategy aligns with their investment objectives. It is crucial to grasp the competitive advantage of fund managers and how they intend to generate returns. Any deviation from the strategy or lack of alignment with the fund's competitive advantage could pose risks to investors.
• Leverage and Risk Management: Understanding the leverage within the fund's structure is crucial. Investors should inquire about the use of leverage and whether the fund is taking on excessive risk to chase higher returns. Excessive leverage and cross-collateralization can magnify risks during market downturns.
• Fund Size and Diversification: Evaluating the fund size and diversification is vital. A smaller fund size may lead to higher expenses relative to assets, impacting overall returns. Additionally, a lack of diversification within the fund could increase concentration risk and hinder the fund's ability to withstand market fluctuations.
• Expert Advice and Impartial Opinions: Seeking advice from industry experts, financial advisors, or consultants can offer valuable insights during the due diligence process. Engaging with professionals can help investors make well-informed decisions and steer clear of potential pitfalls.
• Patience and Education: Patience and education are fundamental components of effective due diligence. Investors should take the time to study the market, comprehend investment opportunities, and be proactive in decision-making. Rushing into investments due to fear of missing out (FOMO) can lead to suboptimal outcomes.

Episode Timeline:

• [00:02:33] Credit funds in investment portfolios.
• [00:04:27] Loan-On-Loan Execution
• [00:09:36] Understanding risk in credit funds.
• [00:13:35] Understanding cross-collateralization in investments.
• [00:16:14] Cross collateralization in investments.
• [00:19:38] Reinvesting in Debt Funds
• [00:24:31] Balancing portfolio for tax benefits.
• [00:26:56] Diversification in real estate investing.
• [00:30:16] Debt fund risks in investments.
• [00:34:37] Be cautious with new syndication teams.
• [00:38:51] Common sense in investing.
• [00:40:45] Emotional Decisions in Investing.
• [00:43:09] Wealth building through education.

Episode 62: Mobile Home Park Investments with Christopher Nelson

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In this episode of "Tech Equity and Money Talk," host Christopher Nelson discusses the importance of exploring new asset classes to diversify your portfolio and increase cash flow.

He shares his personal experience of shifting focus to mobile home parks as a lucrative investment opportunity, highlighting the stable income they can provide.

Tune in to learn how incorporating mobile home parks can enhance your investment strategy and generate consistent cash flow!

Embracing change for personal growth is a fundamental aspect of living a fulfilling and successful life. In a world that is constantly evolving and presenting new challenges, it is essential to be open to change in order to adapt and grow as individuals.

In this episode, the host discussed the importance of embracing change and how it can lead to personal growth and development.

One of the key points made in the podcast was that change is inevitable and resisting it only hinders personal growth. By embracing change, we allow ourselves to learn new things, develop new skills, and adapt to new situations.

This can lead to increased self-confidence, resilience, and a greater sense of accomplishment. The host emphasized that by stepping out of our comfort zones and embracing change, we can discover new opportunities and experiences that we may have never encountered otherwise.

In this episode, we talk about:

• Diversification is Key: As an investor, it's crucial to explore new asset classes to diversify your portfolio. Staying open to new opportunities can lead to discovering hidden gems like mobile home parks that offer substantial cash flow and stability.
• Recession-Resistant Investments: Mobile home parks have proven to be recession-resistant assets. Their affordability and high demand make them a reliable investment option even during economic downturns. Understanding the dynamics of this asset class can help you navigate uncertain times with confidence.
• Partnering with Experienced Operators: When considering investments in mobile home parks, partnering with experienced operators is essential. Look for operators with a proven track record in managing these properties and a clear strategy for maximizing returns while maintaining operational efficiency.

Episode Timeline:

• 00:00:00 - Introduction and Importance of Diversifying Asset Classes
• 00:00:43 - Introduction to Mobile Home Parks
• 00:01:14 - Why Mobile Home Parks?
• 00:02:07 - Exploring Mobile Home Parks: Initial Questions
• 00:03:32 - Understanding Mobile Home Parks: Definitions and Terms
• 00:05:10 - Park-Owned Homes vs. Tenant-Owned Homes
• 00:07:08 - Advantages of Mobile Home Parks
• 00:09:07 - Depreciation and Operating Expenses
• 00:10:10 - Historical Performance and Cash Flow
• 00:11:05 - Recession Resistance of Mobile Home Parks
• 00:12:09 - Supply and Demand Dynamics
• 00:14:06 - Investment Strategies: Buying vs. Partnering
• 00:16:03 - Considerations for Investing in Mobile Home Parks
• 00:17:07 - Vetting Operators and Business Plans
• 00:20:16 - Analyzing Investments: Operations First, Finances Second
• 00:22:03 - Experience and Risk Management
• 00:22:45 - Conclusion: Importance of Exploring New Asset Classes
• 00:23:48 - Final Thoughts and Contact Information

Episode 61: Multifamily Market Trends 2024 with Michael Episcope

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Michael Episcope co-founded Origin Investments in 2007. Michael is co-CEO, co-chairs the investment committee and oversees investor relations and capital raising. Prior to Origin, Michael had a prolific trading career and twice was named one of the top 100 traders in the world by Trader Monthly Magazine.

Michael earned his undergraduate and master’s degrees from DePaul University. He has more than 30 years of investment and risk management experience.

Connect with Michael Episcope

https://origininvestments.com/

https://www.linkedin.com/in/michaelepiscope/

In this episode of Tech Equity and Money Talk, host Christopher Nelson is joined by Michael Episcope, the co-founder and co-CEO of Origin Investments.

This episode provided a deep dive into the multifamily real estate market, offering valuable insights for both seasoned and novice investors.

Michael's experience and strategic approach to real estate investment highlight the importance of risk management, due diligence, and the ability to adapt to changing market conditions.

Tune in to learn about the criteria that led Michael to choose real estate, particularly multifamily, as a vehicle for growing and safeguarding wealth!

In this episode, we talk about:

• Transition to Real Estate:
• Michael and his partner David transitioned from trading to real estate to protect and grow their wealth.
• They were motivated by the stability and simplicity of real estate, influenced by Michael's early exposure through his grandfather.
• Investment Strategy:
• Origin Investments focuses on multifamily real estate, particularly in high-growth markets.
• They employ a barbell strategy, balancing preferred equity and ground-up development to manage risk and protect capital.
• Market Insights:
• Michael shared insights on the current state of the multifamily market, noting oversupply in Sunbelt markets like Austin.
• He emphasized the importance of buying below replacement costs and the potential opportunities in distressed assets.
• Risk Management:
• A significant part of their strategy involves understanding and mitigating risks, especially in volatile markets.
• Michael highlighted the importance of having a strong balance sheet and being cautious with leverage.
• Advice for Investors:
• Michael advised investors to look beyond headlines and perform their own due diligence.
• He stressed the importance of trusting and verifying information from sponsors and being cautious of diversification across too many managers.
• Current Opportunities:
• The current market presents opportunities for contrarian investors who can see beyond short-term distress.
• Michael discussed the importance of understanding the motivations behind investment managers' decisions and being wary of strategy drift.

Episode Timeline:

• [00:01:37] Choosing real estate for wealth.
• [00:03:52] Real estate wealth and risk.
• [00:08:10] Distressed capital structures.
• [00:10:57] Multifamily market oversupply and demand.
• [00:13:25] Investing in lifestyle cities.
• [00:17:06] Real estate investment during recession.
• [00:20:44] Looking beyond the headlines.
• [00:24:39] Throwing money into a hole.
• [00:27:23] Due diligence and verification.
• [00:29:38] Diversification in Real Estate Investing.
• [00:33:06] Strategy drift in investments.
• [00:36:15] Managing diverse product mix.

Episode 60: The Power of Portfolio Income to Unlock Financial Freedom

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In this episode of Tech Equity and Money Talk, host Christopher Nelson discusses the importance of portfolio income for achieving financial independence. He emphasizes the need for systematic education to understand different income investment options and their risk levels.

By running your portfolio like a business, you can build wealth with tech equity. Nelson shares his experiences and applied wisdom to help listeners make informed decisions about their portfolios.

Portfolio income is crucial for achieving financial independence, as emphasized in the podcast episode. The host stresses the importance of diversifying portfolio income across various asset classes to enhance financial growth and stability.

The episode explores a range of traditional and private equity investment options that can generate income, including high yield savings accounts, certificates of deposit, stocks, bonds, REITs, real estate syndications, and private equity funds.

In this episode, we talk about:

• Diversification is Key: We discussed the importance of diversifying your portfolio with both traditional and private equity investments. By understanding the different types of income-bearing assets available, you can strategically allocate your capital to meet your financial goals.
• Focus on Income Generation: The episode highlighted the significance of focusing on income generation through assets like high-yield savings accounts, bonds, dividend-bearing stocks, and real estate investments. By incorporating income-producing assets into your portfolio, you can create a steady stream of cashflow to support your financial independence journey.
• Strategic Portfolio Management: We emphasized the need for strategic portfolio management as a business. By aligning your investment choices with your goals and preferences, you can optimize your portfolio for income generation and long-term growth. Whether you prefer conservative investments or more aggressive strategies like options trading, understanding your portfolio's composition is crucial for success.

Episode Timeline:

• [00:01:27] Portfolio income for financial independence.
• [00:05:33] Portfolio income.
• [00:09:30] Income generating assets.
• [00:15:25] Options trading.
• [00:19:40] Private Equity Real Estate.
• [00:21:16] Real estate investment benefits.
• [00:26:01] Private equity investment options.
• [00:29:22] Private equity competitive edge.
• [00:32:47] Multifamily and mobile home parks.

Episode 59: Tech Equity Fundamentals with Christopher Nelson

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Change is an inevitable part of life. Whether we like it or not, change is constantly happening around us, and the key to thriving in a world of constant change is to embrace it and adapt. In this episode, the host discussed the importance of embracing change and adapting to new circumstances in order to succeed in life.

One of the key points made in this episode was the importance of being flexible and adaptable in the face of change. The host emphasized that those who are able to adapt to new circumstances are more likely to succeed in life, as they are able to navigate challenges and seize opportunities that come their way. By being open to change and willing to adapt, we can position ourselves for success in an ever-changing world.

In this episode of Tech Equity and Money Talk, host Christopher Nelson explores the fundamentals of trading time and talent for equity in the tech industry.

He discussed the importance of thinking like an investor and understanding the rules of the game to succeed in negotiating for high-value liquid equity.

Join in to learn how to grow your career, build wealth, and reach your financial goals as a tech professional!

In this episode, we talk about:

• Think Like an Investor: The podcast emphasizes the importance of thinking like an investor when trading your time and talent for equity. Understanding the fundamental rules of negotiation and positioning your value effectively can lead to successful wealth-building opportunities.
• Leverage Your Skills: By understanding your market value, performing due diligence on potential opportunities, and leveraging your skills and experience, you can negotiate for a compensation package that aligns with your financial goals and aspirations.
• Negotiation is Key: The negotiation process is crucial in securing a favorable equity deal. By preparing, understanding your leverage, and focusing on mutual value exchange, you can navigate the negotiation table effectively and secure a package that meets your needs.

Episode Timeline:

• 00:00:00 - Introduction and Personal Journey
• 00:00:43 - Welcome to Tech Equity and Money Talk
• 00:01:15 - Fundamentals of Trading Time and Talent for Equity
• 00:02:08 - Building Wealth through High-Value Assets
• 00:03:34 - Robert Kiyosaki's Cash Flow Quadrant
• 00:05:09 - The Third Way: Trading Time and Talent for Equity
• 00:06:12 - Success Stories of Trading Time for Equity
• 00:08:19 - Historical Context: Equity in the 1950s
• 00:09:25 - The Trade: Attracting and Retaining Talent
• 00:10:17 - Understanding the Trade and Negotiation
• 00:11:00 - Thinking Like an Investor
• 00:12:04 - Technology Companies' Needs and Goals
• 00:13:07 - Technology Employees' Needs and Goals
• 00:14:20 - Importance of Liquidity in Equity
• 00:15:02 - Positioning Yourself for Equity
• 00:16:06 - Negotiating for Equity in Public Companies
• 00:17:00 - The Four Phases of Negotiation
• 00:18:15 - Phase 1: Displaying Common Interest
• 00:19:07 - Phase 2: Presentation and Positioning
• 00:21:15 - Phase 3: Negotiation
• 00:22:10 - Understanding Vesting Schedules
• 00:23:47 - Phase 4: Final Agreement
• 00:25:00 - Success Strategies for Negotiation
• 00:26:03 - Compensation Analysis: Should I Stay or Should I Go?
• 00:28:00 - Thinking Like an Investor: Risk and Reward
• 00:28:43 - Understanding Your Leverage
• 00:30:17 - Importance of Stock Agreements
• 00:31:31 - Learning from Industry Leaders
• 00:32:46 - Equity at Different Career Levels
• 00:33:28 - Conclusion and Encouragement

Episode 58: Equity Compensation Strategies for 2024

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In this episode of Tech Equity and Money Talk, host Christopher Nelson discusses the current state of trading time and talent for equity in 2024. He emphasizes the importance of looking beyond bleak headlines to understand the real news in the tech industry.

The show transitions from "Tech Equity and Money Talk" to "Tech Equity and Money Talk" to highlight the focus on tech equity.

The important aspect of vulnerability is that it allows for genuine connection. When we are willing to be open and honest about our feelings, we create a space for others to do the same.

This can lead to conversations that are more meaningful and authentic, as we are able to truly connect with others on a deeper level. By embracing vulnerability, we can break down barriers and create stronger bonds with those around us.

Join Christopher Nelson as he explores strategies and tactics for growing your career, building wealth, and achieving your financial and lifestyle goals!

In this episode, we talk about:

• Rebranding the Podcast
• The podcast has been rebranded from "Tech Careers and Money Talk" to "Tech Equity and Money Talk" to focus more on equity compensation and financial strategies for tech employees.
• State of the Job Market
• Layoffs and Hiring: While headlines focus on layoffs, major tech companies like Google, Amazon, and Meta are still hiring, especially in growth areas.
• Return to Office vs. Remote Work: The debate between remote, hybrid, and in-office work continues. Employees need to choose environments that align with their personal and financial goals.
• Impact of AI
• AI is both a disruptive and hyped technology. Companies are looking to hire AI-skilled employees, offering higher salaries and creating opportunities for those who upskill in this area.
• Equity Compensation Trends
• Retention Strategies: Companies are using equity to retain key employees amidst market uncertainty.
• Flexible Vesting Schedules: New trends include front-loaded vesting schedules to attract talent, especially in pre-IPO companies.
• Strategies for Success
• Look Beyond the Hype: Seek reliable data and ask informed questions about your company's retention strategies and equity compensation changes.
• Stick to Fundamentals: Remember that you are the asset. Invest in your skills and understand the value of liquid, growing equity with minimal restrictions.
• Improve Negotiation Skills: Continuously work on your ability to negotiate compensation and equity packages. Have open conversations with your manager and HR about your market value and career goals.

Episode Timeline:

• [00:01:25] State of trading time for equity.
• [00:04:03] Tech companies hiring amid layoffs.
• [00:08:19] The impact of AI.
• [00:11:19] Emerging technology opportunities
• [00:16:28] Flexibility in vesting schedule.
• [00:18:05] Equity compensation strategies.
• [00:23:46] Valuable equity characteristics.
• [00:25:21] Negotiating equity and salary.
• [00:29:32] Understanding equity compensation and negotiation.
• [00:30:35] Value of equity in companies.

Episode 57: Fund Your Start Up Using Your Tech Equity with Ryan Gallego

Ready to explore the latest in tech careers and financial insights? Click here now for an eye-opening journey at https://www.techequityandmoneynews.com/!

Ryan Gàllego is the Founder and Chief Video Architect at Media Pouch. Ryan picked up his first camera at 14 when this ignited his passion not only for photography but for business. At age 17, Ryan started his first “unofficial” photography company and made $30,000 in the first year. The Yacht Week in Croatia cemented the future of Media Pouch.

Later, he went on to follow a lifelong dream of his and moved to Sydney, Australia, to work with some clients and launch Media Pouch abroad. He returned States in November 2019 and has since been scaling Media Pouch across the USA.

Connect with Ryan

https://www.linkedin.com/in/ryanagallego/

In this episode of "Tech Equity and Money Talk," host Christopher Nelson speaks with Ryan Gallego, CEO and founder of Pouch 6 Studios.

They discussed the financial strategies of long-term employees in the tech industry, including the importance of investing in company stock. Ryan shares insights on building wealth and growing your career in the tech world.

The conversation touches on the importance of stock investments and long-term planning based on real-life experiences in the tech industry.

Tune in for valuable insights and tips on navigating the intersection of tech equity and financial success in the tech world!

In this episode, we talk about:

• Working for Equity: Ryan emphasized the importance of working for equity, sharing how his experience at Amazon taught him the value of stock options and how it can significantly impact your financial future. Negotiating for a balance between salary and equity can be a strategic move for long-term financial growth.
• Customer Obsession: Ryan highlighted the significance of customer obsession, a core value he learned at Amazon. Putting the customer first and focusing on their needs can drive business success and create a strong foundation for growth. This customer-centric approach can be applied to various aspects of business operations.
• Self-Funding and Confidence: By self-funding his businesses with the proceeds from his Amazon stock, Ryan gained confidence in his ability to navigate entrepreneurship and build successful ventures. The experience of bootstrapping his companies provided him with the control and confidence needed to take risks and drive growth.

Episode Timeline:

00:00:00 - Introduction and GM's Success Story

00:01:03 - Podcast Introduction and Guest Introduction

00:02:07 - Ryan's Early Entrepreneurial Beginnings

00:03:24 - Decision to Join Amazon

00:05:05 - Traveling the World on Company's Dime

00:06:32 - Non-Technical Roles in Tech Companies

00:07:42 - Financial Engineering and Amazon Role

00:09:20 - Receiving the Amazon Offer

00:10:22 - Amazon's Vesting Schedule

00:13:08 - Analyzing the Stock Agreement

00:15:10 - Belief in Amazon's Growth

00:16:37 - Visibility into Amazon's Financials

00:18:52 - Strategy of Holding Stock

00:20:10 - Opportunity Cost and Career Decisions

00:22:17 - Choosing Between Startups and Big Tech

00:23:57 - Transition to Entrepreneurship

00:25:36 - Realization During Yacht Week

00:27:09 - Leveraging Big Tech Experience for Entrepreneurship

00:29:06 - On-the-Job MBA at Amazon

00:31:10 - Customer Obsession and Business Practices

00:33:47 - Importance of Equity in Scaling Business

00:35:25 - Educating Employees on Equity

00:37:06 - Negotiating Equity in Job Offers

00:39:32 - Market Trends in Vesting Schedules

00:41:49 - Advice for New Graduates on Negotiation

00:43:27 - Final Thoughts on Self-Funding and Confidence

Episode 56: Learning to Manage Tech Wealth with Fred DeWorken

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Frederick DeWorken grew up on a 3-acre poor farm in Amarillo, Texas, and would travel to Santa Cruz, California every summer with his grandmother. In 1989 his step-father bought him his first computer. He has been hooked on "high-tech" ever since.

Connect with Frederick

https://www.linkedin.com/in/data-cloud/

In this episode of Tech Equity and Money Talk, host Christopher continues the conversation with Fred DeWorkin, the CEO and founder of Blue Yeti. In this part 2 episode with Fred, he shares his experiences in the Peace Corps, as well as his involvement in IPOs with Tableau and Snowflake.

The episode focused into the emotions and significance of going through the Snowflake IPO, offering insights into the world of investing and what it takes to be a successful investor.

Fred shares his journey from gaining P&L experience at major tech companies to becoming an investor in various real estate syndications and private companies like data.world. He discusses the emotional rollercoaster of experiencing sudden wealth, particularly during the Snowflake IPO, and the challenges of managing newfound financial success.

In this episode, we talk about:

• Experiencing IPOs with Tableau and Snowflake
• Overcoming sudden wealth syndrome
• Importance of diversification in investments
• Building a business legacy and putting people to work
• Financial education and wealth-building strategies

Episode Timeline:

• 00:00:00 - Introduction and Career Background
• 00:00:24 - Podcast Introduction
• 00:00:45 - Guest Introduction: Fred Dworkin
• 00:01:08 - Fred's IPO Experiences
• 00:03:07 - Sudden Wealth Syndrome
• 00:05:09 - Navigating Sudden Wealth
• 00:06:07 - Tax Concerns and Strategies
• 00:08:38 - Building Confidence Over Time
• 00:09:09 - Managing Equity and Cash
• 00:11:26 - Investment Strategies and Learning
• 00:13:31 - Experiential Learning in Investments
• 00:14:26 - Current Learning and Business Ventures
• 00:16:11 - Blue Yeti and Latin American Talent
• 00:18:12 - Building a Legacy
• 00:19:26 - Wealth Journey Advice
• 00:20:48 - Closing Remarks and Outro