Author Topic: SYTE - Enterprise Diversified  (Read 162986 times)

Sunrider

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Re: SYTE - Enterprise Diversified
« Reply #590 on: November 07, 2018, 10:55:19 PM »
Spot on. This was my earlier point, an external manager seeks to collect his/her fees with the least amount of effort and just passes along costs ... show me the incentives ...!


I read the update, and my only comment is this:

On behalf of property owners everywhere, I want to thank Jeff for installing 1/4 turn ball valves on his plumbing shut-offs. I've replaced so many seized gate valves over the years (roughly all of the ones I own!) that hearing someone else with a practical bent to real estate makes me very happy. Plumbers love gate valves for reasons that make no sense to me, and I've had them installed in properties I own after I explicitly specified 1/4 turn ball valve (by plumbers that no longer do work for me). That type of attention to detail is key for small scale real estate investment. It costs an extra couple bucks, but it is basically guaranteed to save a $100 service call within the next 10 years. And once in awhile it will save a $10,000 flood issue when something is leaking and the crappy gate valve can't be closed. I doubt that level of attention to detail is available from an outsourced property management firm, but I sincerely wish this company the best.


LowIQinvestor

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Re: SYTE - Enterprise Diversified
« Reply #591 on: November 08, 2018, 05:45:16 AM »
I'm behind the curve on SYTE so I might have missed this but:
reading all the comments/concerns on costs of running a tiny publicly traded SEC reporting company, why is/should SYTE be a public co.

Why deal with these headaches? Not convinced that capital raising is easier with a thinly traded OTC co.

fishwithwings

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Re: SYTE - Enterprise Diversified
« Reply #592 on: November 08, 2018, 08:49:57 AM »
Why didn't Jeff just create a new LLC with him as CEO to manage the properties?   Seems like that would have been a better alternative than outsourcing the management to a random third party who doesn't know the properties as intimately as Jeff.
« Last Edit: November 08, 2018, 08:53:08 AM by fishwithwings »

rkbabang

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Re: SYTE - Enterprise Diversified
« Reply #593 on: November 08, 2018, 08:55:53 AM »
Why didn't Jeff just create a new LLC with him as CEO to manage the properties?   Seems like that would have been a better alternative than outsourcing the management to a random third party who doesn't know the properties as intimately as Jeff.

+1, I'd feel a lot better about all of this with Ragnar Property Management, LLC taking care of the properties.

matts

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Re: SYTE - Enterprise Diversified
« Reply #594 on: November 08, 2018, 08:58:59 AM »
Pirate Property Partners (TM).

Jeff, give me a ring and we can talk about a licensing agreement :)

sarganaga

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Re: SYTE - Enterprise Diversified
« Reply #595 on: November 08, 2018, 09:21:19 AM »
I'm behind the curve on SYTE so I might have missed this but:
reading all the comments/concerns on costs of running a tiny publicly traded SEC reporting company, why is/should SYTE be a public co.

Why deal with these headaches? Not convinced that capital raising is easier with a thinly traded OTC co.

It may be management's sugar plum dreams of creating the next Berkshire Hathaway.

roark33

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Re: SYTE - Enterprise Diversified
« Reply #596 on: November 08, 2018, 10:34:15 AM »
Just think of the value invested in Willow Oak.  What is the best vehicle to make this investment for now and in the future.  Is it through a public company?  I promise you, it is not.  The same mistake that was made by creating a real estate vehicle in a public company entity will eventually be realized when it comes to Willow Oak.  It should be done through a private LLC/S-Corp.  The only difference is that Jeff has realized this quicker than the others and got out. 

valueyoda

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Re: SYTE - Enterprise Diversified
« Reply #597 on: November 08, 2018, 10:49:16 AM »
It is hard to grow a hedge fund beyond a certain size (e.g. $50mln) nowadays. Smaller hedge funds can be lucrative for their operators when they keep costs down and perform well. However, it is hard for these revenue sharing agreements to add substantial value to SYTE beyond the ongoing operating expenses, especially if both funds' sizes remain moderately small or if these funds have a period of below average performance.

roark33

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Re: SYTE - Enterprise Diversified
« Reply #598 on: November 08, 2018, 10:55:00 AM »
The real point isn't how big any of the funds in Willow Oak become, the real point is that the capital investment should not be made through Syte or ENDI.  It's a poor structure, and that will become clear over time. 

Broeb22

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Re: SYTE - Enterprise Diversified
« Reply #599 on: November 08, 2018, 11:01:58 AM »
The real point isn't how big any of the funds in Willow Oak become, the real point is that the capital investment should not be made through Syte or ENDI.  It's a poor structure, and that will become clear over time.

Roark, can you elaborate?