#137 - Interview with Drew Pearson, Founder of Pearson Partners

QUOTE OF THE WEEK

"The choice for mankind lies between freedom and happiness and for the great bulk of mankind, happiness is better." - George Orwell

FOOD FOR THOUGHT

Circle of Competence Podcast #18 - Drew Pearson, Founder of Pearson Partners (Link)

This week, I'm sharing my conversation with Drew Pearson, founder of real estate private equity firm, Pearson Partners. Pearson Partners' "goal is to create a recession resistant real estate investment that produces consistent cash flow with an opportunity for upside" by investing in quality class B properties. In our conversation, we covered:

- Advice on specialization from his 10 year career as a CRE broker

- The impact of technology on brokerage and 'winner take most' effect

- How to differentiate yourself as a broker AND owner

- The three types of industrial property (distribution, flex, warehouse)

- Transitioning from commercial brokerage to ownership

- Broker skillsets vs. Owner skillsets

- Creating value in medical, industrial, and storage assets

- Underwriting risks of various real estate asset classes

- Assessing competitive positioning of a property (replacement cost, market rent, and market demand / growth)

- Investing for cashflow vs. appreciation

- An industrial deal breakdown

- Drew's 'Five F's' (Faith, Family, Friends, Fun, Fitness)

Links:

- Pearson Partners newsletter / website

- Drew's twitter account

LINKS

Investing

Peter Lynch: How to Invest When Stock Prices are At All-Time Highs (Investor Center)

The end of mean reversion? (John Huber)

Waiting for the last dance (Jeremy Grantham)

The Unbeatable Ed Hyman, Wall Street's greatest economist (Institutional Investor)

Real Estate

Why Miami is the next tech hub (Crunchbase)

The housing market is heading for a cliff (Robert Davis)

Technology

Is substack the media future we want? (The New Yorker)

What are the largest capex-heavy companies that will be founded over the next 20 years? (Brett Bivens)

Thomas Lee Partners presents the economics of cryptocurrencies (Upfront Summit 2018)

Politics & Economics

Plato's Republic (BBC)

A primer on the geopolitics of oil (War on the Rocks)

Do not take freedom for granted. We have to preseve it. (Jocko Willink)

Science

How pi connects colliding blocks to a quantum search algorithm (Nautilus)

Using plants for carbon sequestration (Nautilus)

Tommy McGuire, President of Echo Environmental (The Fort Podcast)

Misc.

Discipline Equals Freedom Field Manual, audio (written and read by Jocko Willink)