Business School is hosted by Sharran Srivatsaa, President of Real (TSX: REAX) (NASDAQ: REAX), the fastest-growing, publicly-traded, real estate brokerage in the world. Sharran grew Teles Properties by 10x in 5 years to $3.4 Billion in sales and eventually sold the business to Douglas Elliman. Sharran is also an accomplished “deal guy” and private equity investor. He is the Chairman of private equity firm Highland Prime which focuses on investing in service-businesses and also the Chairman of ARC Multifamily Group which focuses on value-add multifamily investment projects. Sharran is a former Goldman Sachs and Credit Suisse banker and a sought after keynote speaker and is the creator of the wildly-popular 5am Club call for Entrepreneurs. On this podcast, Sharran shares his best secrets on how to grow your business strategically, how to build your brand elegantly, most importantly integrate the profits in your business with an overall joyful life. For more free resources visit Sharran.com
https://www.sharran.com/podcast/
episode 67: Our 4-Step Process for Investing in Companies
The concept of investing directly in a company is not as commonly done compared to simply buying stocks. Finding private investment opportunities to make money is a great way to unlock additional income. There is more risk involved, but the opportunities allow you to gain above-market returns and influence the business direction. Investing in a company can be a fantastic way to build wealth. But before you do that, make sure you have a concrete process. Professional investors need playbooks to replicate their success and learn from their mistakes. If you don't already have your own process, here is Sharrans’s 4-step process for investing in a company. It's pretty simple, but it works!
Enhance your investing skills by listening to related episodes below:
- Episode 59: The 2 Investing Models Every Serious Investor Must Know
- Episode 61: How to Pitch Your VC and Investor Friends
- Episode 62: Price & Terms – Your Unfair Negotiating Advantage
“We don't look at contracts as a way to enforce something. We look at contracts as a way to memorialize our agreement.”
- Sharran Srivatsaa
Timestamps:
00:00 Why do you need a playbook
01:39 Mistakes can be costly if you don't have a playbook
02:22 Sharran’s framework is an excellent guide if you're considering investing in a business
03:32 Discover the origin of Sharran’s FOUR GOODS process
04:36 Good people - referrals are not enough; working relationship and history are necessary to get to know people
09:37 Good intentions - is this person friendly, helpful, and collaborative?
12:55 The two kinds of people - the person in the middle is a very dangerous person
16:46 Good rationale - the deal has to work on a simple spreadsheet; No spreadsheet, No deal!
19:16 Good contract (a Memorandum of Understanding can also work) - don't proceed with the contract without good people, good intentions, and good rationale
Resources:
- Grab Sharran’s 4-Week MBA for Free
Connect with Sharran:
- Website