ILAB 125: Vetting Real Estate Deals Terms, with Omar Khan

“Everybody thinks they’re a genius because in a bull market everybody confuses luck with brains.”

Omar Khan

Omar Khan’s global experience has been leveraged across commercial real estate and capital markets. He has advised on over $3.7 billion of capital financing and M&A transactions. Being a seasoned professional in capital markets (capital financing, M&A, sell-side equity research), strategic planning and operations has provided him with a unique perspective. 

In this episode, Omar will discuss why every potential investor should read and understand the PPM. Find out ways to leverage property tax advantages that will bring down your tax bracket. Learn how real money is made in real estate private equity while investing in deals where there is an alignment of interest with the sponsors.

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Listen to ILAB 125 on iTunes here or subscribe on your favorite podcast app.

ILAB 125 Show Notes


Links:

Where we are:

  • Sam Marks – Tampa, Florida
  • Johnny FD – Tbilisi, Georgia

Discussed:

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Time Stamps:

  • 01:14 – A brief wine history and traveling Georgia, the country
  • 07:05 – What is PPM used for?
  • 16:05 – What it takes to put together a PPM
  • 19:12 – “Everybody thinks they’re a genius because in a bull market everybody confuses luck with brains.” – Omar Khan
  • 24:32 – Private Placement Memorandum: The Sophisticated Investor’s Guide
  • 29:52 – How becoming a real estate agent will cut your taxes in half
  • 39:55 – A standard and fair depreciation clause
  • 41:03 – “Have low fees and a high equity structure so you get compensated for performance.” – Omar Khan
  • 49:15 – Class of limited partners and equity split best practices
  • 57:43 – The depreciation method used – Cost segregation
  • 1:04:40 – Foreign earned income exclusion & other taxes advantages
  • 1:16:53 – The risk of not reading the PPM

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Johnny’s Georgian Amber Wine!