How John Built a Billion-Dollar Real Estate Platform
At a Family Office Club fireside chat, Richard C. Wilson interviews John about building a real estate platform.
Richard C. Wilson introduces John as co-founder and partner of Fairbridge Asset Management, whose real estate platform Richard says manages over $1 billion. They discuss how John built the lending business and what he looks for in deals, borrowers, people and institutional capital. John speaks from his real estate experience, while Richard asks about scale, operations and raising capital.
In this video: Richard C. Wilson (Interviewer), John (Co-founder and partner of Fairbridge Asset Management)
What they said
- John on reviewing downside. John says he aims to be transparent with investors and spends time concentrating on the downside. Before the event, he says his team reviewed every portfolio default on a conference call.
- John on passing on deals. John says he passes when the loan-to-value or loan-to-cost ratios, other ratios, or sponsor do not meet his standards. He says he won't keep pursuing a deal just because he likes the property.
- John on visiting properties. John says someone at his company walks each property and meets the sponsor there. He wants to inspect the roof and utility rooms himself, even though his firm uses technology and algorithms.
- John on institutional readiness. John says institutions require an institutional platform and third-party due diligence. He describes investing in audited financials, legal documents, fund administration and monthly net asset value reporting.
- John on deal quality. John says a good deal can make an investor pursue the sponsor. He says he receives hundreds of deal emails a week and looks first at the deal when deciding whether to respond.
In their words
"I spend a lot of time making sure that whatever task I am doing in a particular moment that I'm fully focused and concentrating."
"A problem is only a problem if it can't be fixed."
Why it matters if you are building or preserving great wealth
John says a borrower offering a 10% equity kicker to lower a loan quote from 11% to 10% raises a red flag for him. He questions why a sponsor would give up that upside, and says he prefers to stay with debt.
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Anu Aga: Focus on one main cause. Her family found its giving more satisfying and impactful once it chose primary education for the underprivileged in India.
- Binod K. Chaudhary: Never chase a deal out of desperation. Stay cool and look at every part of the deal. Have your advisers and your finance team review it critically. Your counsel should review it too.
- Larry Connor: Learn from every mistake. Larry's team owns its failures and makes no excuses. They learn, change quickly, and keep getting better.
See the data
Frequently asked questions
Where did John begin his lending business?
John says he started with bridge lending in the Bronx, where he was born and raised, and kept his lending there before expanding.
How did John find people to hire?
He says almost every person he hired had sat across the table from him in business. He estimated that 90% of his hires were people he had seen working on deals.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.