Episode 73: Why I Chose to Build My Portfolio as a Business With Christopher Nelson

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Ever feel like you're just winging it with your finances?

In this episode, Christopher Nelson discusses the concept of managing a portfolio as a business rather than just personal finance.

Christopher Nelson gets real about how he leveled up by treating his portfolio like a business – and why you should too.

We’re talking about shifting from the chaos of personal finance to a plan that actually makes sense, with a mission, vision, and the kind of discipline that helps you sleep at night.

Christopher breaks down the psychological perks, how to avoid lifestyle creep, and even some tax hacks. Plus, he's all about setting up your future generations for success. It’s finance, but in a way that feels... doable.

Connect with Christopher

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

Highlights:

• Takeaways
• Treat your money as a business for better results.
• Having a mission and vision clarifies investment strategies.
• The ultra wealthy manage their finances with intention.
• Prevent lifestyle creep by evaluating financial decisions.
• Tax efficiency is greater in a portfolio business structure.
• Implementing systems leads to more efficient management.
• Wealth transfer is easier with a structured portfolio.
• Balancing personal commitments with portfolio management is crucial.
• Education and community support are essential for financial growth.
• Be patient and deliberate in your investment journey.

Episode Timeline:

• 00:00 Introduction to Portfolio Management as a Business
• 01:28 The Inspiration Behind Treating Money as a Business
• 05:18 Transitioning from Personal Finance to Business Structure
• 10:24 The Impact of Mission and Vision on Investment Strategy
• 15:21 Psychological Advantages of Managing Money as a Business
• 19:26 Preventing Lifestyle Creep Through Financial Discipline
• 23:43 Tax Efficiency in Portfolio Business vs. Personal Investments
• 26:32 Implementing Systems for Efficient Portfolio Management
• 29:07 Wealth Transfer to Future Generations
• 31:59 Challenges in Structuring a Portfolio as a Business
• 34:54 Balancing Portfolio Management with Personal Commitments

Episode 72: An Intro to Due Diligence Process in Real Estate for New Investors with Hans Box

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Connect with Hans Box

https://boxwilson.com/

In this episode of Tech Equity and Money Talk, host Christopher Nelson welcomes Hans Box, founder and owner of Box Wilson Equity Group, which manages $90 million in assets. Hans discusses the critical importance of due diligence in investment decisions.

The conversation touches on the potential pitfalls of neglecting due diligence, highlighting real-life examples of bad investments stemming from inadequate research.

Hans Box is Co-Founder of Box Wilson Equity, a firm that focuses on cash flow and value-add investments. Box Wilson has invested $90MM+ in equity across various asset classes, including multifamily, self-storage, mobile home parks, distressed debt, office, and preferred equity.

He attended Texas A&M University, graduating cum laude with a B.S. degree in Accounting and magna cum laude with an M.S. degree in Accounting and is a Certified Public Accountant licensed in the state of Texas.

Hans has personally been directly involved in the acquisition, investment, and management of over $350MM in multifamily and self-storage assets, has asset managed ~3,700 multifamily units and has been the GP in ~4,300 multifamily units and ~2,000 units of self-storage.

Prior to Box Wilson Equity, he spent 5 years with a DFW-based multifamily owner-operator, where he oversaw the acquisition and asset management functions. Hans began his career at PricewaterhouseCoopers LLP where he worked in tax and strategy consulting with Fortune 500 companies.

Host: Christopher Nelson

Guest: Hans Box

Highlights:

• The Importance of Due Diligence - Hans emphasizes the need for thorough due diligence when investing in real estate. He contrasts the extensive time people spend researching consumer goods like TVs and cars with the often minimal time spent on significant investment decisions. Proper due diligence is crucial for becoming a successful passive investor and achieving financial freedom.
• Vetting the Sponsor - Hans highlights that the most critical aspect of due diligence is vetting the sponsor. He uses the analogy of the jockey and the horse to stress that a good sponsor can turn a mediocre deal into a success, while a bad sponsor can ruin a great deal. Key red flags include lack of transparency and overly sales presentations.
• Understanding the Business Plan - Hans advises that a clear value-add strategy should be evident in any business plan. Investors should be able to understand how the sponsor plans to add value to the property, whether through rent increases, property improvements, or other means. He also stresses the importance of a sensitivity analysis to understand how different variables can impact the deal's returns.
• Fees and Compensation - The discussion also covers the importance of understanding the fee structure. Hans points out that while fees are standard, they should be reasonable and aligned with the investor's interests. He warns against deals with excessive fees that can dilute returns.
• Practical Advice for Investors - Hans provides practical advice for investors, including the importance of learning to read a P&L statement and understanding key assumptions in the business plan. He also recommends being patient and not succumbing to FOMO (fear of missing out), as there will always be more deals.

Episode Timeline:

• [00:00:45] Due diligence in investing.
• [00:05:14] Vetting the operator's transparency.
• [00:08:32] Salesy business presentations.
• [00:12:24] Evaluating sponsor experience in investing.
• [00:15:32] Value-add strategy in investments.
• [00:21:20] Cash flow in commercial real estate.
• [00:22:04] Cash flow vs. value add.
• [00:25:11] Understanding assumptions in investments.
• [00:29:09] Rent increase justification process.
• [00:33:07] Sensitivity analysis in investing.
• [00:35:Due diligence in real estate.
• [00:40:51] Preferred return in investments.
• [00:44:01] Patience in real estate investing.
• [00:48:45] Due diligence in investing.
• [00:50:25] Risk adjusted return in investments.

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

In this episode of Tech Equity and Money Talk, your host Christopher Nelson is dropping some wisdom! He’s sharing five big lessons he picked up during his first two years of financial independence.

Spoiler alert: It's not all about kicking back and sipping cocktails! 🌴 You’ll hear why having crystal-clear goals, a solid plan, and some serious discipline is key to keeping that financial engine humming. Tune in and get ready to level up your money game! 💰🚀

Connect with Christopher

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

Highlights:

• Having a Purpose: Financial independence isn't just about having free time; it's about having a clear purpose that drives you. For me, it started with wanting to spend more time with my sons and has evolved into helping technology employees understand and manage tech equity as a wealth-building strategy.
• A Roadmap is Non-Negotiable: Two essential roadmaps guided my journey—a life plan and a financial plan. The life plan helped me focus on family goals and personal growth, while the financial plan provided a clear strategy for building and managing my portfolio.
• Transition from Money Maker to Money Manager: This shift can be challenging as it involves changing your identity from someone who earns money to someone who manages it. However, it also opens up opportunities for investing in startups, philanthropy, and building a multi-generational family business.
• Self-Discipline is Essential: Without the structure of a traditional job, maintaining discipline is crucial. I follow a structured daily routine that includes early mornings, creative time, exercise, and family activities. This discipline extends to continuously challenging myself and staying uncomfortable to ensure growth.
• Run Your Portfolio as a Business: Managing your portfolio like a business involves having a clear legacy statement, a portfolio thesis, and a structured management cadence. This approach ensures that your investments are aligned with your long-term goals and can support multiple generations.

Episode Timeline:

• [00:02:49] Finding Purpose in Financial Independence.
• [00:04:24] Finding purpose in journaling.
• [00:08:55] Building a lifestyle business.
• [00:13:21] Transition to money manager.
• [00:18:15] Getting uncomfortable for growth.
• [00:22:42] Managing your portfolio like a business.
• [00:24:08] Lessons for financial independence.