Greg joined Timberland Partners in 2008 and brings more than 20 years of industry experience to the leadership team.
What’s the most fulfilling part of your job?
When you get an email saying, “I’m retiring, and one of the reasons I can do it is because I’ve made my investments with Timberland Partners over the years.” I mean, that’s fulfilling. It’s kind of why we do this. I get an extra charge in my step when I hear a story like that!
How do you help potential investors determine whether a real estate fund is right for them?
We take each investor and kind of feel them out early in the process as to if they’ve ever invested in long-term real estate. We coach them through, kind of educate them as to why invest in real estate and how our partnerships work. Once they understand our vision, and as long as the investment objectives are in line, we move forward with it.
What role does co-investing play in bringing partners aboard?
There’s a simple business plan: find properties, find partners and manage it well. We go out and find a property that we want to invest in, and we realize that we can’t do it on our own. But, if we believe in the property and are the most significant investor in that particular partnership, we can rally our investment partners. It’s a wonderful thing. By investing significantly in the deal, it allows us to then attract other partners because they know that we’re putting our money, our skin in the game right alongside them.
Why are real estate investment funds good to have as part of a portfolio?
I think it’s more advantageous because it provides investors with a diversified portfolio. If we invest in one singular deal, the investment rides on the success or failure of that one property. If we’re investing in a fund, there might be eight to 10 properties in it. If we’re not hitting the investment projections on it going in, chances are one of those other ones is a home run.
Why should people consider diversifying their portfolio with multifamily real estate?
When you invest in real estate, you have this ability to build long-term wealth slowly over time. You’re not flipping it like we’re flipping stocks. You build equity over the long haul through appreciation of well-located real estate, as well as through pay down of principal on mortgages. So, equity builds over time, but it’s also a very tax-advantaged investment. You can use your depreciation and amortization non-cash write-offs to defer taxes and it works well to build long-term wealth using the tax code.
It is a great way to diversify [a portfolio] because real estate doesn’t fluctuate with every whim of the news media. If something happens politically, some world event happens, the stocks can rise and fall just on a whim. Real estate just trudges along and is on an upward trajectory over the long haul.
What advice would you give to someone who’s considering investing with Timberland Partners?
Well, the first thing I would tell somebody who’s thinking about making their first investment with us is to fully understand what it is we’re doing. Ask all the questions you want. We’re here for you to do that. We want partners for the long term who match up in their investment philosophies with us. I would advise them to read all the materials and to check with some of our investment partners.
How does co-investing raise the stakes for you as a team member?
I’m an employee of Timberland Partners too – we all are – but I’m going to work as an owner, and I think that helps permeate throughout our entire organization. The idea that we plan for success and we execute the plan is one of our guiding principles. Everybody that’s here working together gets that culture and understands that we’re not just a name or a number. We’re all in the same boat working together.
