Managing Tech Millions

Episode 63: Understanding Debt and Credit Funds with Michael EpiscopeReady to explore the latest in tech careers and financial insights? Click here now for an eye-opening journey at http://www.managingtechmillions.com/!Michael Episcope on the Rise of Credit and Debt Funds in Private EquityGuest Overview:Michael Episcope, co-founder and co-CEO of Origin Investments, brings his extensive experience in trading and private equity to the conversation. Twice named one of the top 100 traders in the world, Michael now focuses on investor relations and capital raising at Origin.Connect with Michael Episcope:Origin InvestmentsWhy Listen:Get expert insights into the growing role of credit and debt funds in private equity and learn how to navigate this investment landscape for steady returns.Episode Highlights:Understanding Credit Funds: Michael explains how credit and debt funds invest in parts of the capital structure that are more protected than equity, offering a more stable income through yield rather than relying on asset appreciation.Caution for Investors: Listeners are warned about the risks of inexperienced managers who may rush to invest under the pressure of closed-end funds, potentially compromising returns.Consistent Returns: Credit funds, which often invest in senior debt or leverage senior loans, are highlighted as valuable alternatives for investors seeking consistent and reliable income.Join Managing Tech Millions for a deep dive into the benefits and risks of credit funds in private equity with Michael Episcope!In this episode, we talk about:Track Record and Experience: Evaluating the track record and experience of fund managers is paramount. Investors should seek out managers with a proven track record and a proficient team for deal origination. Understanding the source of deals and the investment strategy of fund managers is essential in assessing their credibility.Strategy and Competitive Advantage: Investors must ensure that the fund's strategy aligns with their investment objectives. It is crucial to grasp the competitive advantage of fund managers and how they intend to generate returns. Any deviation from the strategy or lack of alignment with the fund's competitive advantage could pose risks to investors.Leverage and Risk Management: Understanding the leverage within the fund's structure is crucial. Investors should inquire about the use of leverage and whether the fund is taking on excessive risk to chase higher returns. Excessive leverage and cross-collateralization can magnify risks during market downturns.Fund Size and Diversification: Evaluating the fund size and diversification is vital. A smaller fund size may lead to higher expenses relative to assets, impacting overall returns. Additionally, a lack of diversification within the fund could increase concentration risk and hinder the fund's ability to withstand market fluctuations.Expert Advice and Impartial Opinions: Seeking advice from industry experts, financial advisors, or consultants can offer valuable insights during the due diligence process. Engaging with professionals can help investors make well-informed decisions and steer clear of potential pitfalls.Patience and Education: Patience and education are fundamental components of effective due diligence. Investors should take the time to study the market, comprehend investment opportunities, and be proactive in decision-making. Rushing into investments due to fear of missing out (FOMO) can lead to suboptimal outcomes.Episode Timeline:[00:02:33] Credit funds in investment portfolios.[00:04:27] Loan-On-Loan Execution[00:09:36] Understanding risk in credit funds.[00:13:35] Understanding cross-collateralization in investments.[00:16:14] Cross collateralization in investments.[00:19:38] Reinvesting in Debt Funds[00:24:31] Balancing portfolio for tax benefits.[00:26:56] Diversification in real estate investing.[00:30:16] Debt fund risks in investments.[00:34:37] Be cautious with new syndication teams.[00:38:51] Common sense in investing.[00:40:45] Emotional Decisions in Investing.[00:43:09] Wealth building through education. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit managingtechmillions.com

Episode 62: Mobile Home Park Investments with Christopher NelsonReady to explore the latest in tech careers and financial insights? Click here now for an eye-opening journey at http://www.managingtechmillions.com/!Host: Christopher Nelson | Podcast: Managing Tech MillionsKey Takeaways:Diversification Strategy: Discover the power of diversifying your portfolio with new asset classes, like mobile home parks.Why Mobile Home Parks? Christopher shares his journey of shifting focus to mobile home parks for stable income and consistent cash flow.Embracing Change: Learn why embracing change is crucial for personal growth and how it can open doors to new opportunities.Highlights:Diversify to Increase Cash Flow: Christopher highlights the importance of exploring new asset classes to enhance your investment strategy.Mobile Home Parks as a Lucrative Investment: A personal take on how mobile home parks can be a stable source of income.Adapting for Growth: Change is inevitable—embracing it can lead to personal development, increased resilience, and unexpected opportunities.Why Listen? This episode is a must-listen for anyone looking to diversify their investment portfolio and open themselves up to new opportunities for growth.In this episode, we talk about:Diversification is Key: As an investor, it's crucial to explore new asset classes to diversify your portfolio. Staying open to new opportunities can lead to discovering hidden gems like mobile home parks that offer substantial cash flow and stability.Recession-Resistant Investments: Mobile home parks have proven to be recession-resistant assets. Their affordability and high demand make them a reliable investment option even during economic downturns. Understanding the dynamics of this asset class can help you navigate uncertain times with confidence.Partnering with Experienced Operators: When considering investments in mobile home parks, partnering with experienced operators is essential. Look for operators with a proven track record in managing these properties and a clear strategy for maximizing returns while maintaining operational efficiency.Episode Timeline:00:00:00 - Introduction and Importance of Diversifying Asset Classes00:00:43 - Introduction to Mobile Home Parks00:01:14 - Why Mobile Home Parks?00:02:07 - Exploring Mobile Home Parks: Initial Questions00:03:32 - Understanding Mobile Home Parks: Definitions and Terms00:05:10 - Park-Owned Homes vs. Tenant-Owned Homes00:07:08 - Advantages of Mobile Home Parks00:09:07 - Depreciation and Operating Expenses00:10:10 - Historical Performance and Cash Flow00:11:05 - Recession Resistance of Mobile Home Parks00:12:09 - Supply and Demand Dynamics00:14:06 - Investment Strategies: Buying vs. Partnering00:16:03 - Considerations for Investing in Mobile Home Parks00:17:07 - Vetting Operators and Business Plans00:20:16 - Analyzing Investments: Operations First, Finances Second00:22:03 - Experience and Risk Management00:22:45 - Conclusion: Importance of Exploring New Asset Classes00:23:48 - Final Thoughts and Contact Information This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit managingtechmillions.com

Episode 61: Multifamily Market Trends 2024 with Michael EpiscopeReady to explore the latest in tech careers and financial insights? Click here now for an eye-opening journey at http://www.managingtechmillions.com/!Episode: Insights into the Multifamily Real Estate Market with Michael EpiscopeGuest: Michael EpiscopeCo-founder and Co-CEO of Origin Investments (2007)Role: Oversees investor relations and capital raising; co-chairs the investment committeeBackground:Formerly a top trader, recognized twice by Trader Monthly Magazine as one of the top 100 traders in the world30+ years of investment and risk management experienceEducation:Undergraduate and Master’s degrees from DePaul UniversityConnect with MichaelOrigin InvestmentsLinkedInEpisode OverviewIn this episode of Managing Tech Millions, host Christopher Nelson chats with Michael Episcope about the multifamily real estate market.Key Takeaways:Deep Dive into Multifamily Real Estate: Insights for seasoned and novice investors.Importance of Risk Management: Strategies for effective real estate investment.Due Diligence: Understanding critical assessment criteria.Adaptation to Market Conditions: Navigating changes in the real estate landscape.Why Choose Multifamily Real Estate?Discover the criteria that led Michael to select multifamily real estate as a key wealth-building vehicle.In this episode, we talk about:Transition to Real Estate:Michael and his partner David transitioned from trading to real estate to protect and grow their wealth.They were motivated by the stability and simplicity of real estate, influenced by Michael's early exposure through his grandfather.Investment Strategy:Origin Investments focuses on multifamily real estate, particularly in high-growth markets.They employ a barbell strategy, balancing preferred equity and ground-up development to manage risk and protect capital.Market Insights:Michael shared insights on the current state of the multifamily market, noting oversupply in Sunbelt markets like Austin.He emphasized the importance of buying below replacement costs and the potential opportunities in distressed assets.Risk Management:A significant part of their strategy involves understanding and mitigating risks, especially in volatile markets.Michael highlighted the importance of having a strong balance sheet and being cautious with leverage.Advice for Investors:Michael advised investors to look beyond headlines and perform their own due diligence.He stressed the importance of trusting and verifying information from sponsors and being cautious of diversification across too many managers.Current Opportunities:The current market presents opportunities for contrarian investors who can see beyond short-term distress.Michael discussed the importance of understanding the motivations behind investment managers' decisions and being wary of strategy drift.Episode Timeline:[00:01:37] Choosing real estate for wealth.[00:03:52] Real estate wealth and risk.[00:08:10] Distressed capital structures.[00:10:57] Multifamily market oversupply and demand.[00:13:25] Investing in lifestyle cities.[00:17:06] Real estate investment during recession.[00:20:44] Looking beyond the headlines.[00:24:39] Throwing money into a hole.[00:27:23] Due diligence and verification.[00:29:38] Diversification in Real Estate Investing.[00:33:06] Strategy drift in investments.[00:36:15] Managing diverse product mix. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit managingtechmillions.com

Discover the power of portfolio income in achieving financial freedom. The host emphasizes the importance of diversifying investments across various asset classes, from high-yield savings accounts to real estate syndications. Learn the critical difference between passive and portfolio income, advocating for proactive engagement in your financial journey. Gain insights into risk assessment and strategic management to build a robust income portfolio that aligns with your financial goals.

Episode 59: Tech Equity Fundamentals with Christopher NelsonReady to explore the latest in tech careers and financial insights? Click here now for an eye-opening journey at http://www.managingtechmillions.com/!Change is an inevitable part of life. Whether we like it or not, change is constantly happening around us, and the key to thriving in a world of constant change is to embrace it and adapt. In this episode, the host discussed the importance of embracing change and adapting to new circumstances in order to succeed in life.One of the key points made in this episode was the importance of being flexible and adaptable in the face of change. The host emphasized that those who are able to adapt to new circumstances are more likely to succeed in life, as they are able to navigate challenges and seize opportunities that come their way. By being open to change and willing to adapt, we can position ourselves for success in an ever-changing world.In this episode of Managing Tech Millions, host Christopher Nelson explores the fundamentals of trading time and talent for equity in the tech industry. He discussed the importance of thinking like an investor and understanding the rules of the game to succeed in negotiating for high-value liquid equity.Join in to learn how to grow your career, build wealth, and reach your financial goals as a tech professional!In this episode, we talk about:Think Like an Investor: The podcast emphasizes the importance of thinking like an investor when trading your time and talent for equity. Understanding the fundamental rules of negotiation and positioning your value effectively can lead to successful wealth-building opportunities.Leverage Your Skills: By understanding your market value, performing due diligence on potential opportunities, and leveraging your skills and experience, you can negotiate for a compensation package that aligns with your financial goals and aspirations.Negotiation is Key: The negotiation process is crucial in securing a favorable equity deal. By preparing, understanding your leverage, and focusing on mutual value exchange, you can navigate the negotiation table effectively and secure a package that meets your needs.Episode Timeline:00:00:00 - Introduction and Personal Journey00:01:15 - Fundamentals of Trading Time and Talent for Equity00:02:08 - Building Wealth through High-Value Assets00:03:34 - Robert Kiyosaki's Cash Flow Quadrant00:05:09 - The Third Way: Trading Time and Talent for Equity00:06:12 - Success Stories of Trading Time for Equity00:08:19 - Historical Context: Equity in the 1950s00:09:25 - The Trade: Attracting and Retaining Talent00:10:17 - Understanding the Trade and Negotiation00:11:00 - Thinking Like an Investor00:12:04 - Technology Companies' Needs and Goals00:13:07 - Technology Employees' Needs and Goals00:14:20 - Importance of Liquidity in Equity00:15:02 - Positioning Yourself for Equity00:16:06 - Negotiating for Equity in Public Companies00:17:00 - The Four Phases of Negotiation00:18:15 - Phase 1: Displaying Common Interest00:19:07 - Phase 2: Presentation and Positioning00:21:15 - Phase 3: Negotiation00:22:10 - Understanding Vesting Schedules00:23:47 - Phase 4: Final Agreement00:25:00 - Success Strategies for Negotiation00:26:03 - Compensation Analysis: Should I Stay or Should I Go?00:28:00 - Thinking Like an Investor: Risk and Reward00:28:43 - Understanding Your Leverage00:30:17 - Importance of Stock Agreements00:31:31 - Learning from Industry Leaders00:32:46 - Equity at Different Career Levels00:33:28 - Conclusion and Encouragement This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit managingtechmillions.com

Episode 58: Equity Compensation Strategies for 2024Ready to explore the latest in tech careers and financial insights? Click here now for an eye-opening journey at http://www.managingtechmillions.com/!In this episode of Managing Tech Millions, host Christopher Nelson discusses the current state of trading time and talent for equity in 2024. He emphasizes the importance of looking beyond bleak headlines to understand the real news in the tech industry. The show transitions from "Managing Tech Millions" to "Managing Tech Millions" to highlight the focus on tech equity. The important aspect of vulnerability is that it allows for genuine connection. When we are willing to be open and honest about our feelings, we create a space for others to do the same. This can lead to conversations that are more meaningful and authentic, as we are able to truly connect with others on a deeper level. By embracing vulnerability, we can break down barriers and create stronger bonds with those around us.Join Christopher Nelson as he explores strategies and tactics for growing your career, building wealth, and achieving your financial and lifestyle goals! In this episode, we talk about:Rebranding the PodcastThe podcast has been rebranded from "Tech Careers and Money Talk" to "Tech Equity and Money Talk" to focus more on equity compensation and financial strategies for tech employees.State of the Job MarketLayoffs and Hiring: While headlines focus on layoffs, major tech companies like Google, Amazon, and Meta are still hiring, especially in growth areas.Return to Office vs. Remote Work: The debate between remote, hybrid, and in-office work continues. Employees need to choose environments that align with their personal and financial goals.Impact of AIAI is both a disruptive and hyped technology. Companies are looking to hire AI-skilled employees, offering higher salaries and creating opportunities for those who upskill in this area.Equity Compensation TrendsRetention Strategies: Companies are using equity to retain key employees amidst market uncertainty.Flexible Vesting Schedules: New trends include front-loaded vesting schedules to attract talent, especially in pre-IPO companies.Strategies for SuccessLook Beyond the Hype: Seek reliable data and ask informed questions about your company's retention strategies and equity compensation changes.Stick to Fundamentals: Remember that you are the asset. Invest in your skills and understand the value of liquid, growing equity with minimal restrictions.Improve Negotiation Skills: Continuously work on your ability to negotiate compensation and equity packages. Have open conversations with your manager and HR about your market value and career goals.Episode Timeline:[00:01:25] State of trading time for equity.[00:04:03] Tech companies hiring amid layoffs.[00:08:19] The impact of AI.[00:11:19] Emerging technology opportunities[00:16:28] Flexibility in vesting schedule.[00:18:05] Equity compensation strategies.[00:23:46] Valuable equity characteristics.[00:25:21] Negotiating equity and salary.[00:29:32] Understanding equity compensation and negotiation.[00:30:35] Value of equity in companies. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit managingtechmillions.com

Ryan Gallego, Founder and Chief Video Architect at Media Pouch, shares his entrepreneurial journey that began at age 17 with a photography business. He discusses financial strategies for tech employees, emphasizing the importance of stock investments and long-term planning. Ryan highlights his transition from corporate roles to entrepreneurship, revealing how equity can serve as a valuable income stream. Listeners gain insights on managing stock options, negotiating equity, and the critical role of customer obsession in achieving business success.

Episode 56: Learning to Manage Tech Wealth with Fred DeWorkenReady to explore the latest in tech careers and financial insights? Click here now for an eye-opening journey at http://www.managingtechmillions.com/!Frederick DeWorken grew up on a 3-acre poor farm in Amarillo, Texas, and would travel to Santa Cruz, California every summer with his grandmother. In 1989 his step-father bought him his first computer. He has been hooked on "high-tech" ever since. Connect with Frederickhttps://www.linkedin.com/in/data-cloud/In this episode of Managing Tech Millions, host Christopher continues the conversation with Fred DeWorkin, the CEO and founder of Blue Yeti. In this part 2 episode with Fred, he shares his experiences in the Peace Corps, as well as his involvement in IPOs with Tableau and Snowflake. The episode focused into the emotions and significance of going through the Snowflake IPO, offering insights into the world of investing and what it takes to be a successful investor.Fred shares his journey from gaining P&L experience at major tech companies to becoming an investor in various real estate syndications and private companies like data.world. He discusses the emotional rollercoaster of experiencing sudden wealth, particularly during the Snowflake IPO, and the challenges of managing newfound financial success.In this episode, we talk about:Experiencing IPOs with Tableau and SnowflakeOvercoming sudden wealth syndromeImportance of diversification in investmentsBuilding a business legacy and putting people to workFinancial education and wealth-building strategiesEpisode Timeline:00:00:00 - Introduction and Career Background00:00:24 - Podcast Introduction00:00:45 - Guest Introduction: Fred Dworkin00:01:08 - Fred's IPO Experiences00:03:07 - Sudden Wealth Syndrome00:05:09 - Navigating Sudden Wealth00:06:07 - Tax Concerns and Strategies00:08:38 - Building Confidence Over Time00:09:09 - Managing Equity and Cash00:11:26 - Investment Strategies and Learning00:13:31 - Experiential Learning in Investments00:14:26 - Current Learning and Business Ventures00:16:11 - Blue Yeti and Latin American Talent00:18:12 - Building a Legacy00:19:26 - Wealth Journey Advice00:20:48 - Closing Remarks and Outro This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit managingtechmillions.com

Episode 55: Navigating Equity in Tech Companies with Fred DeworkenReady to explore the latest in tech careers and financial insights? Click here now for an eye-opening journey at http://www.managingtechmillions.com/!Frederick DeWorken grew up on a 3-acre poor farm in Amarillo, Texas, and would travel to Santa Cruz, California every summer with his grandmother. In 1989 his step-father bought him his first computer. He has been hooked on "high-tech" ever since. Connect with Frederickhttps://www.linkedin.com/in/data-cloud/In this episode Fred DeWorkin, founder and CEO of Blue Yeti, who shares his journey from working in the Peace Corps and as a claims adjuster to transitioning into the tech industry. Fred discusses the value of storytelling, building relationships, and articulating one's worth in career transitions. He highlights the importance of investing in oneself and the foundational role of training in shaping his successful tech career. Join them as they explore strategies for career growth, building wealth, and achieving financial and lifestyle goals in the tech industry.Fred's experience highlights the importance of self-discovery, belief in oneself, and the willingness to step out of one's comfort zone to pursue new opportunities. His journey serves as a testament to the possibility of successfully transitioning into the tech industry, even without a traditional tech background. Fred's story also underscores the value of mentorship, networking, and continuous learning in navigating a career transition.In this episode, we talk about:Belief in Yourself: Fred's journey highlights the importance of believing in your own value and skill set. By investing in himself and having the confidence to pursue opportunities in the tech industry, Fred was able to carve out a successful career path.Focused Approach: Fred's strategic approach to targeting specific companies and industries, such as pre-IPO growth companies in Latin America, showcases the power of focus and determination. By narrowing down his options and honing in on key opportunities, Fred was able to make significant strides in his career.Learning from Experience: Fred's experience working with both Tableau and Snowflake taught him valuable lessons about the dynamics of hyper-growth companies, leadership changes, and the importance of understanding equity and tax implications. His ability to adapt and learn from each experience contributed to his overall success.Episode Timeline:00:00:00 - Introduction to Personal Value and Investment in Self00:00:29 - Building a Career Foundation in Sales00:00:47 - Welcome and Podcast Overview00:01:08 - Guest Introduction: Fred DeWorkin00:01:47 - Fred's Career Transition and Value Articulation00:02:12 - Importance of Personal Stories in Career Advancement00:02:53 - Realizing Opportunities in Tech00:04:03 - Decision to Pursue a Tech Career00:04:25 - Job Search and Strategic Focus00:06:57 - Learning from Industry Leaders00:08:20 - Reality Check and Adjusting Expectations00:09:11 - Professional Development through ProLango00:10:07 - Effective Job Search Techniques00:11:37 - Narrowing Down Job Targets00:12:40 - Joining Tableau Software00:13:46 - Leadership and Product Impact at Tableau00:16:15 - Belief in Self and Skill Set00:18:02 - Receiving an Offer and Equity at Tableau00:20:33 - Learning from Tableau's Operational Excellence00:24:10 - Transition to Snowflake and IPO Preparation00:27:36 - Emotional Impact of Career Transitions00:30:46 - Joining Snowflake and Recognizing Opportunity00:32:53 - Equity Strategy and Financial Planning at Snowflake00:36:18 - Observing Leadership Changes and IPO Strategy00:38:44 - Wrap-up and Reflections on Career and Equity This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit managingtechmillions.com

Episode 54: RSU Strategies for Tech Professionals with Landon LoveallReady to explore the latest in tech careers and financial insights? Click here now for an eye-opening journey at http://www.managingtechmillions.com/!Landon Loveall is a certified financial planner and dedicated advocate for tech professionals to increase their wealth through financial, tax and stock option planning. He is a partner of KB Financial Advisors which has been specializing in maximizing stock options for tech employees since 2014.Landon regularly shares his thought leadership on the KB Financial Advisors blog about the unique scenarios presented by employee stock options. When he's not assisting clients, Landon enjoys kayaking down the Duck River with his wife Melissa and their three children in Columbia, TN.Connect with Landonhttps://kbfinancialadvisors.com/https://www.linkedin.com/in/landonloveall/In order to maximize the value of RSUs over time, it is important to understand the vesting schedule and how the shares become taxable. Typically, RSUs have a time-based vesting schedule, where a certain percentage of shares vest each year over a four-year period. The key events to pay attention to are the vesting date, when the shares become yours, and the settlement date, when the shares are transferred into your ownership and become taxable.Before an IPO, RSUs may have a double trigger, where the shares vest based on time and an event trigger, such as the company going public. After an IPO, vesting and settlement typically occur at the same time. It is important to be aware of the tax implications of RSUs, as the value of the shares becomes taxable at the settlement date.In this episode, we talk about:Understanding RSU Vesting Schedules: Landon emphasized the importance of not just focusing on the volume of stock you receive but also paying close attention to the vesting schedule. The vesting schedule and what you receive over time are critical aspects that can impact your financial planning significantly. Knowing when your RSUs vest and how they become taxable is crucial for maximizing your returns on time and talent.Pre-IPO RSUs vs. ISOs: We discussed the differences between pre-IPO RSUs and ISOs, shedding light on the tax implications and risks associated with each type of equity compensation. Landon highlighted the complexities of incentive stock options and the importance of understanding the tax implications, especially around an IPO event.Pay Stub Analysis for RSUs: Landon shared valuable insights on how tech professionals should analyze their pay stubs when it comes to equity compensation. Understanding supplemental withholding rates, federal and state taxes, and the implications of RSU settlements on tax liabilities is crucial for effective financial planning and tax management.Episode Timeline:00:00:00 - Introduction to Equity Compensation00:01:02 - Guest Introduction: Landon Lovell00:02:06 - Understanding RSUs and Their History00:03:26 - Tax Implications of RSUs00:05:20 - RSUs in Public Companies00:06:55 - Options for Handling RSUs at Vesting00:09:01 - Variations in RSU Packages00:11:31 - Negotiating Equity Compensation00:13:07 - Immediate and Front-Loaded Vesting Trends00:15:05 - Importance of Equity Compensation Strategy00:17:00 - Risks and Rewards of Equity Compensation00:18:04 - Personal Strategy for Managing Equity00:19:12 - Transition from ISOs to RSUs in Private Companies00:22:04 - Pre-IPO RSUs and Tax Considerations00:24:31 - Understanding Pre-IPO Share Values00:29:17 - Pay Stub and Tax Implications for Equity Compensation00:34:23 - Conclusion and Further Resources This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit managingtechmillions.com