Active vs Passive Bets

Making bets
  • Capital outlay
  • Investment return
  • Investment lifespan
  • Operator competence
  • Assurances and recourse
  • Learning opportunities
  • Property development is fraught with challenges and risks from project feasibility calculations, sourcing suppliers to development lead times. The odds are stacked against a novice developer. The markets saturated with participants competing for deals and the high capital requirements can potentially translate to huge pains on missteps.
  • Learning on the sidelines, while better than a black box is not enough for the observer to reenact. For one to learn, one must have the opportunity to get hands-on and experience the outcome of their discoveries and decisions. It’s near impossible to learn to drive a manual car by reading a book or even in a manual car while needing to learn and adapt to the road rules and traffic.
  • To consider serious commercial pursuit, understanding of the rules & requirements and risk mitigation should be in place. Guardrails and guidance are needed for a chance to learn the area and its mechanics.

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