Success = Risk Management
At first glance, it is not obvious WHY film business is a natural fit for professional real estate investors.
The reason film business is a natural for successful professional real estate investors is because success in BOTH requires experienced and insightful transactional risk management.
The common mis-conception
… among non-professional real estate investors is that money is made from buying the asset and holding. Nothing could be further from the truth, because:
1)Residential real estate’s ‘buy and hold’ gain is primarily due to inflation disguised as profit with naieve accounting;
2)Holding real estate is expensive- the carrying costs of maintenance, repairs, taxes, and management being the main culprits and can can eliminate a gross yield of less than 3% down to zero.
3)Commercial real estate is a better yield instrument, and often generates enough to better competitive rates of eturn in other asset classes while also coveing rental costs for a residential property !!!
4)MyTapu Associates have a long history of bettering the performance on specific residential real estate assets, but that requires very specific circumstances; the first being that the inflation adjusted ‘real interest rate’ must be lower than the inflation rate itself (more about that upon request).
Professional real estate investor’s do not rely on waiting…
… for ‘buy and hold’ returns. Instead, the most successful of these investors make there money on the transaction sequence itself, embedding deal structure and negotiation, with re-positioning, packaging, financing and other aspects using a couple of key principles involving ‘discounting’ and ‘deferrment’ (more about those upon request). The transaction process usually takes 3-4 weeks but more often may play out over 6-18 months.
The very best of these investors are referred to as ‘Tycoons’….
Sometimes they make investment returns with zero cash invested, thereby making money from nothing, as the principals of MyTapu Associates have done themselves…
MyTapu Associates have worked with a few ‘Tycoons’… in their roles as…
1)Clients
2)Partners of our clients
3)Counter-parties to us and our clients
Our insights in Tycoons’ activities …covers several industries…
·Oil & Gas Exploration
·Petro-Chemicals
·Life Sciences
·Aircraft Leasing
·Investment Banking
·Hedge Fund Management
·Construction
·Real Estate
·Media
Transactional Risk Management…
… for real estate applies to each stage and step of the transaction. This is the same process required for film business. So professional real estate investors immediately and intuitively grasp the concept and instinctively reap the rewards of film business.
This is WHY we are so pleased…
… that the film investment process for our investors into the project ‘Believe’ has now been distilled into the most limited risk scenario imaginable, structured by a transactional process whereby a mere $5,000 at risk, begins a step-by-step risk managed transactional sequence resulting in $ 10,000,000 of investment from a Private Equity Investment Fund into the film.
This completes the Risk Management Transactional Structuring
Structuring … for this project, which also covers risk management of:
·Film Production Risks… with completion bond insurance coverage.
·Commercial Risks… with segregated operational mandates for specific entities.
·Intellectual Property Risks … with multi-entity corporate structuring.
·Succession & Key Management Continuity Risks… with economic rights managed in Trust.
·Human Resources Risks… with Executive Search agencies’ mandates.
·Fiscal Risks… with multi-jurisdictional structuring of entities.
Successful investing.. is not achieved by making calculations of numbers, but instead requires attentive drill down deep into details of transaction structuring based on insightful, experienced Risk Management techniques (including Due Diligence), practices, and policies.
#RealEstateInvesting #FilmInvestment #RiskManagement #RealEstate #FilmFinance #TransactionalRiskManagement #PrivateEquity #AlternativeInvestments #DueDiligence #MovieBusiness #RealEstateTycoon #BelieveTheFilm