Staying diversified and flexible is almost always a good thing with regard to your real estate investments. Here on the show today to talk about his approach and fund is Hussain Nathoo from OrangeStone Capital! Our guest is based in Houston, Texas and we get to hear from him about managing the fund, how he got into the real estate game, and some of his thoughts on the market in Texas currently. We delve a bit into his focus on the state of Texas and how he has diversified within this geographic location, before getting some insight into the particulars of the fund, how he manages it, and how to make the most of good opportunities that present themselves. Hussain offers some great thoughts on prioritization, how this can simplify decision-making, and we also talk about what makes the top of OrangeStone's list! The conversation covers the impacts of the pandemic, leverage and loans, and differentiating a fund from competitors. For all this and a whole lot more, be sure to tune into The Pitch Podcast today!

Key Points From This Episode:

• Hussain's professional background and his entry-point into investing and starting a fund.
• Some thoughts on the power of real estate assets as a safe investment. 
• The key elements to Hussain's approach to investing: 'Utilizing the underlying dirt'.  
• The range of deal-sizes that OrangeStone Capital generally looks for.
• Creating an edge and differentiating from the array of other funds in the market.  
• Leverage in deals; OrangeStone's philosophy towards underwriting and loans.  
• Assessing the right moment to sell and why Hussain bases this on risk.   
• Hitting the right level of diversification across the industry for a good level of exposure.
• A good example of an OrangeStone deal in Texas from a couple of years ago!  
• Concerns over inflation rates and where the market may go from here.
• The effects of COVID and how things have played out across Texas for Hussain.  
• A stand-out investment lesson that Hussain learned from a failed deal in 2012.
• A quick breakdown of the setup at OrangeStone; employee numbers, asset value, and more! 
• How Hussain approaches balancing the different aspects of his role and pursuing the right deals.
• Closing thoughts from Hussain; fostering continual evolution for growth and longevity.

Tweetables:

“From an overall perspective, I think you have to allocate some of your dollars to real estate. It's traditional economics and asset allocation. I think you have to have diversification within real estate.” — @hussain_nathoo [0:02:57]

“We're generalists by nature, just due to the various real estate assets that we own. But we are hyper-focused on land.” — @hussain_nathoo [0:06:07]

“We rarely ever drop deals because we generally identify everything we need to know prior to putting a deal under contract.” — @hussain_nathoo [0:06:33]

Links Mentioned in Today’s Episode:

Hussain Nathoo on LinkedIn

OrangeStone Capital

Hussain Nathoo on Twitter

University of Texas at Austin

PitchBoard