52 min
Investing in Real Estate Funds with Doug Smith The Option Genius Podcast: Options Trading For Income and Growth
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- Investing
Allen: All right, Passive Traders. Welcome to another edition of the Option Genius Podcast, we got a real treat for you today. I have one of my long, long time friends with me today and we're actually doing something special, we're going to do a video as well as audio on the Podcast, we will be having some slides, but when we show the slides will describe to you what's going on in the slide so those of you who are listening will not be missing out. And the video will also be on our media channels and YouTube channel. So you can catch it there if you need. I want to introduce my guest today He is Mr. Doug Smith of Hawthorne Funds. Doug and I go back, man, we go back, like over what over a decade or so. But yeah.
Doug: 15 years.
Allen: So Doug is Mr. Moneybags himself, Mr. Real Estate, you know, he's been doing real estate for years and years, he launched a very successful company called MyHouseDeals.com where if you are a real estate investor, you can go and find all the deals that are not on the MLS. So it's pretty cool. And that site has made a lot of people a lot of money. But today, we're gonna be talking about Doug's newest venture, this is something that he's been doing for a few years now. And you know, whenever you get together with friends, you talk and "Hey, what's up?" "What are you doing?" And we would share stories of what we were doing and, and Doug A few years ago, came up to me, and he's like, yeah, you know, I'm doing all this stuff with land and doing this and doing that. And I was like, Wow, man, you're making a killing. And he made such a big killing that he just like, he just has to get out. And he's like, Alright, we need to do this on a bigger scale. And so Doug went and figured out how to do a investment fund. And so that's what we're going to be talking about today. I know back in Episode 94, it's called "How I Invest". I shared that one of my investments is in a real estate fund. And that is Doug's fund. And so I asked Doug, to come on and answer some questions and give us some highlights about what investment funds are, how they work, what to look for, when you're choosing one, making sure that your investment is safe, and all that stuff. So Doug, hopefully, I covered everything. If you anything you want to add, please go ahead.
Doug: More or less, you covered all the stuff that makes me look good. So we'll just skip all the other stuff.
Allen: Yeah, I didn't want to tell all your dirty secrets.
Doug: It's good to see you again, Allen. And thank you so much for having me here on the call. I'm really looking forward to sharing everything I can to educate people help you out.
Allen: Yeah, I appreciate it. Appreciate it. Thank you for having us. So tell us what are you doing at Hawthorne?
Doug: Oh, my gosh, well, I work all the time, which was so funny, because when you and I met, I was like a lifestyle guy. But yeah, for those considering starting up a private equity firm, just know that it will consume you. We buy and sell land outside of Houston, Texas. And so we're buying about a million dollars a month worth of land, sometimes more. And we're selling maybe $2 million a month worth of land, it really just depends on the month. But that requires a lot of people and a lot of emails, a lot of phone calls, a lot of Excel spreadsheets, there's just a lot going on, there's 20 or 30 of us that make all of this happen. So there's always something kind of vying for my attention as it pertains to mining selling land and raising people's money and investing that money properly.
Allen: Yep. And so one of the things I do want to point out that Doug, you are doing this for yourself before you started the fund?
Doug: Yes, that's right. So not only that, I have my house deals calm going on, I was buying and selling houses, I was selling those on owner financing. And then my business partner and I switched over to land in 2016 started buying that and selling on owner financing. And it was just, it was ve
Allen: All right, Passive Traders. Welcome to another edition of the Option Genius Podcast, we got a real treat for you today. I have one of my long, long time friends with me today and we're actually doing something special, we're going to do a video as well as audio on the Podcast, we will be having some slides, but when we show the slides will describe to you what's going on in the slide so those of you who are listening will not be missing out. And the video will also be on our media channels and YouTube channel. So you can catch it there if you need. I want to introduce my guest today He is Mr. Doug Smith of Hawthorne Funds. Doug and I go back, man, we go back, like over what over a decade or so. But yeah.
Doug: 15 years.
Allen: So Doug is Mr. Moneybags himself, Mr. Real Estate, you know, he's been doing real estate for years and years, he launched a very successful company called MyHouseDeals.com where if you are a real estate investor, you can go and find all the deals that are not on the MLS. So it's pretty cool. And that site has made a lot of people a lot of money. But today, we're gonna be talking about Doug's newest venture, this is something that he's been doing for a few years now. And you know, whenever you get together with friends, you talk and "Hey, what's up?" "What are you doing?" And we would share stories of what we were doing and, and Doug A few years ago, came up to me, and he's like, yeah, you know, I'm doing all this stuff with land and doing this and doing that. And I was like, Wow, man, you're making a killing. And he made such a big killing that he just like, he just has to get out. And he's like, Alright, we need to do this on a bigger scale. And so Doug went and figured out how to do a investment fund. And so that's what we're going to be talking about today. I know back in Episode 94, it's called "How I Invest". I shared that one of my investments is in a real estate fund. And that is Doug's fund. And so I asked Doug, to come on and answer some questions and give us some highlights about what investment funds are, how they work, what to look for, when you're choosing one, making sure that your investment is safe, and all that stuff. So Doug, hopefully, I covered everything. If you anything you want to add, please go ahead.
Doug: More or less, you covered all the stuff that makes me look good. So we'll just skip all the other stuff.
Allen: Yeah, I didn't want to tell all your dirty secrets.
Doug: It's good to see you again, Allen. And thank you so much for having me here on the call. I'm really looking forward to sharing everything I can to educate people help you out.
Allen: Yeah, I appreciate it. Appreciate it. Thank you for having us. So tell us what are you doing at Hawthorne?
Doug: Oh, my gosh, well, I work all the time, which was so funny, because when you and I met, I was like a lifestyle guy. But yeah, for those considering starting up a private equity firm, just know that it will consume you. We buy and sell land outside of Houston, Texas. And so we're buying about a million dollars a month worth of land, sometimes more. And we're selling maybe $2 million a month worth of land, it really just depends on the month. But that requires a lot of people and a lot of emails, a lot of phone calls, a lot of Excel spreadsheets, there's just a lot going on, there's 20 or 30 of us that make all of this happen. So there's always something kind of vying for my attention as it pertains to mining selling land and raising people's money and investing that money properly.
Allen: Yep. And so one of the things I do want to point out that Doug, you are doing this for yourself before you started the fund?
Doug: Yes, that's right. So not only that, I have my house deals calm going on, I was buying and selling houses, I was selling those on owner financing. And then my business partner and I switched over to land in 2016 started buying that and selling on owner financing. And it was just, it was ve
52 min