How John Built a Billion-Dollar Real Estate Platform
At a Family Office Club fireside chat, Richard C. Wilson interviews John about growing a real estate platform.
John says his business began with bridge lending in the Bronx, using his and his family's money for smaller deals. As the business grew, it expanded across the tri-state area and then nationally. He says institutional investors began approaching the firm, leading him to build the systems needed to work with them.
In this video: Richard C. Wilson (Family Office Club founder and interviewer), John (Co-founder and partner of Fairbridge Asset Management)
What they said
- John's downside focus. John says he tries to be authentic and transparent with investors and spends time concentrating on the downside. (at 3:21)
- John's real estate deal screening. John says he sticks to real estate, which he knows. As a lender, he walks away when loan metrics or the sponsor do not work, even if he likes the property. (at 4:46)
- John's on-site property diligence. John says someone from his company walks the property and meets the sponsor there. He wants to inspect the roof, utility rooms and every part of the property. (at 6:38)
- John on building an institutional platform. John says there is no set asset level for seeking institutional money. He says a firm needs a platform that can pass third-party due diligence, with audits, legal documents and fund administration. (at 10:46)
- John on pursuing a good deal. John says that when he sees a deal he considers good, he pursues the person who brought it to him. (at 19:04)
In their words
"I don't feel the need to have to answer people immediately."
"I've noticed that problems are a blessing in disguise."
Why it matters if you are building or preserving great wealth
John says monthly NAV reporting and newsletters followed the fund's institutional setup. Those updates gave investors a regular view of the fund after its audited financials were in place.
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
How did John begin expanding his real estate business?
John said he started with bridge lending in the Bronx and initially used his and his family's money for $100,000 deals. As the business grew, he began looking across the tri-state area and later nationally.
How did John approach recruiting?
John said almost every person he hired had sat across the table from him in business. He watched how people negotiated and underwrote deals, and said about 90% of the people they hired were people he had seen doing business with.
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.