Real Estate Development: No Partners, No Problem

Filmed October 24, 2017, at the ULI Fall Meeting in Los Angeles.

Should your business mantra be “Go big or go home,” or “Too big not to fail”? In a lively, freewheeling exchange intended to educate emerging entrepreneurs and perhaps amuse mature ones, John McNellis author of the ULI book “Making It in Real Estate,” explores the benefits—and costs—of using other people’s money to fund your development deals versus the freedom—and limitations—of using your own money. Is it better to own 1 percent of a high-rise or 100 percent of a gas station? To go national or stay local? Spoiler alert: You can go broke either way.

Speaker:
* John E. McNellis of McNellis Partners LLC

[justenliu]

real business man talking about real business, no bull shit,

[dappa]

This guy is giving info that people charge for.

[unico]

John is a great great model to follow. And a very eloquent, competent and experienced speaker. Just a pleasure to watch and listen to. Thank you for sharing.

[sunso]

It really hit me with the segment with hire vs having someone on retainer. That is just brilliant

[albxdotcom]

I enjoy how humble this guy is. Good talk. As a last note, crowdfunding is a mess, you have to have existing projects worth tens of millions under management for the crowdfunding platform to even look at your deal.

[HOEA-WAKA]

Good Brevity, Clear, Simple. Thanks John.

[cherylbranche]

Spent my twenty-thirty years in a career. It didn’t work out. Am glad it is not unusual for a project to not work out. Thank you for the video and insights.

[derekmarkovic]

McNellis is the man. Dude is a total boss.

[DestroyerX]

There is a mistake in the numbers at 10:00. $1.05m + $180k is $1.23m not $1.185m

[kalpavriksha]

Great advise and good mentor kalpavriksha realty to walk to international market sounds good

[suzanneladue]

Preston, we agree :) Thank you for the video and talk. Very informative.

[tomjens]

regarding spikes in earnings - what about you structure the sale in a way that buyer does not pay all at once (to your financial partner), but pays within X amount of years? I know it was just an example though, but my idea is that you can always be creative :)

[srket]

Very very useful talk, and from my experience I can totally relate

[RandalColling]

Super video guys!! Always better off without partners.

[ImagineAKiss]

This is great information, thank you so much!

[theresaowen]

I really appreciate the details in this talk!

[deepikaatkinson]

Wow, great insights, I need a consultation regarding developer business (Woman owed business) and investor funds partnership into my commercial projects, how do I properly structure Entities & profit share agreement with lawyer and still have control of the project and won't lose the property?

[Kiama]

11:55 financial partner ? Is that the bank or hedge funds and pension funds ?

[marydoherty]

found this talk interesting. i live in the uk and just found my american birth dad after a 20 something year search, nice to know im part american :D he is not in good health so i just bought 5.82 acres in the suthern missouri ozarks for somewhere to stay when i eventually can get over there to meet him face to face for the first time in my life ( prob wont happen tho because of his health) i have the land on seller finance but im hoping to eventually be able to do some sort of 'property development for profit' then re invest again if it works out right the first time round lol

[po]

What is a financial partner? Is this just someone out there who is willing to fund a deal or a bank or hard money broker?