Welcome to “Talking with Investors with Robby Butler”

Welcome to a deep dive into the world of real estate investing. I’m Victor Menasce, your host for this discussion. Today, I’m delighted to introduce you to my guest, Robby Butler. Robby and I work together on a day-to-day basis, where he serves as the director of capital markets in our development firm, Wye Street Capital. In this article, we’ll be unpacking some of the market trends that frankly, have left us slightly troubled.

From Philanthropy to Real Estate

Robby’s path into real estate is unconventional. Coming from a philanthropic background, he developed invaluable skills in listening and understanding investor goals. Additionally, his entrepreneurial pursuits have sharpened his understanding of business and the need for investments to produce returns. Over the past year at Wye Street Capital, Robby has thrived in engaging with investors and bringing in greater potential for our firm.

The Struggle with Troublesome Market Trends

In our current marketplace, we come across numerous projects and investment opportunities. However, we often find projects that don’t pass due diligence or fail to make basic common sense. Unfortunately, some of these dubious projects secure funding, resulting in the loss of capital for unsuspecting investors. The challenge for us then becomes how we warn these investors without appearing to badmouth other developers. After all, our aim is to protect investors from potential hazards.

Navigating Investor Conversations

Conversations with investors, both individual and institutional, have to be handled with keen deliberation. Robby offers two key principles for investors: Recognize when you’re being sold to and slow down the investment process. Particularly for the passive investors, rushing into decisions can lead to unwarranted risks. In my book, ‘Magnetic Capital’, I emphasize alignment – the fit between the goals for the money and the goals for the project. The most sophisticated investors are adept at identifying this alignment, while less experienced investors may need guidance to gain this clarity.

Personal Investment Checklist
Size of the investment
Term of the investment
Rate of return
Risk
Tax consequences

In conclusion, whether you’re an institutional investor seeking expansion, or an individual investor starting on their journey, a critical awareness of the investment landscape and a thorough process for decision-making are key to sheltering your capital from market hazards.

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