How to Draft an Investment Thesis
Pascal Wagner talks with Devin Elder about writing a personal investment thesis and using it to decide which deals to say yes to.
In this interview
Devin Elder explains how his firm settled on its investment thesis, and why it added a second line of business so it never has to buy a deal just to keep its team busy. He makes the case for an LP writing down what their money should do, whether that is income, growth or lower taxes, before looking at any deal, and for learning slowly alongside other investors. He talks through leverage, inflation and taxes as the rules wealthy investors play by. He lists what he looks for in an operator, such as finished deals like the one on offer and money of their own in it, and how he thinks about a deal that asks investors for more money.
Chapters
- Meet Devin Elder
- How Devin Elder got into real estate
- How a firm writes its investment thesis
- Why a firm adds other asset classes
- Writing your own thesis as an LP
- Leverage, inflation and taxes
- What he looks for in an operator
- When a deal asks for more money
The picture is YouTube’s poster for this episode. Published September 27, 2023 by Pascal Wagner, founder of DealStack. DealStack does not rate or recommend firms. DJE Texas Management Group does not pay DealStack, so this page is not a paid placement.
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