Tell us about yourself. How did your career progress? What recreational activities do you enjoy outside of work?
I practiced law for 25 years before retiring and simultaneously invested in various businesses and real estate. Years ago, my friends and I started a small savings loan business that a large financial services company eventually acquired.
I noticed opportunities in land development, and my legal background in zoning and entitlement gave me an edge over competitors. I completed deals across the U.S., including in Waldorf, Maryland, and Manassas, California, where I bought large parcels and sold them piece by piece over 40 years.
For example, I had one property rezoned and purchased by a data center, another sold to Home Depot, and partnered with a developer to build 70 townhomes.
I co-own a sand mining enterprise in Phoenix that has a lifetime mining permit for sand and gravel and access to highly coveted desert water.
Outside of work, I used to play a lot of golf, but I recently hurt my leg and haven’t been on the course as much. I have three grandchildren spread across the U.S.
Passive income streams and real estate investments have allowed me to spend more time with loved ones.
How has the U.S. stock market hitting all-time highs recalibrated your investment philosophy, if at all?
I don’t actively manage my stock portfolio. Fortunately, a combination of a financial advisor and my youngest son, who works at a hedge fund, provides recommendations.
I have a portfolio of Treasury bills maturing this year, and I might consider transitioning to the
Ginkgo Notes program. After a period of record inflation, it’s essential to keep my money working.
Maintaining a well-balanced portfolio that includes stocks, bonds, and real estate has allowed me to sleep well at night through various market cycles.
How do you consider alternative investments part of overall portfolio diversification?
Many years ago, we invested with Ginkgo. I can’t say I knew much about commercial real estate back then, but one of our neighbors was a principal at Ginkgo and introduced the potential benefits and risks. This was around the great financial crisis of 2008-2009, which presented bargain opportunities.
Since we recognized we might be over allocated to the public markets via index funds, we decided to invest in some projects with Ginkgo. Fortunately, these investments ended up paying back multiple times.
Why do you invest in commercial real estate?
Commercial real estate appreciates over time and provides steady rental income.
Although real estate often allows for higher leverage, my properties never had leverage, which kept my carrying costs relatively low and allowed me to be patient.
There are many opportunities to participate in real estate and reduce or defer tax implications. For instance, I’ve deferred taxes by contributing assets to Ginkgo and receiving
Operating Partnership Units, which allows for a step-up in basis as part of estate planning.
What criteria do you consider when evaluating a possible sponsor partner?
Aligning interests with a sponsor is crucial. Sponsors are more likely to be transparent about the project’s progress, potential issues, and overall performance when interests are aligned.
It’s important to review a sponsor’s fees and compensation based on performance (i.e., profit-sharing, success fees) to ensure they align with the project’s success.
Understanding the amount a sponsor co-invests is also paramount to reducing potential conflicts of interest, as both parties work towards the same outcome. Ginkgo has a significant co-investment in every investment it offers.
How did you learn about Ginkgo, and what has your experience been like thus far?
I learned about Ginkgo through my older son, who worked with one of the principals many years ago.
The principals are sharp and honest. Things sometimes go differently than planned, but they prioritize their investors’ needs. I’ve visited the team in Charlotte many times, and their door is always open.
The Investor Relations team communicates well and provides timely account statements.
Overall, it’s been a great experience working with the Ginkgo team.
Disclaimer
The statements made in this testimonial are the personal opinions of the investor and are not guarantees of future performance. Individual results may vary, and all investments carry risk. Please conduct your own research or consult with a financial advisor before making any investment decisions.
