Other People's Money OR Other People's Research

 

 

There is the expression about OPM, which stands for “other people’s money” that is used when helping to finance a real estate deal. To me, an even more important resource is OPR, which is “other people’s research”. When you read about a new project that has big money behind it, there can be significant benefits to learning how that project was formulated.

The below linked story about the $632 million aircraft parts factory is a prime example. There are significant tax incentives provided by the State. Having 1,000 more jobs created in one location means there will be many needs and projects to surround the build. Employees may want new places to live nearby, while being likely to need restaurants, a pharmacy, and other retail and service. 

Many people will see the story and move on. There are thousands of dollars of research associated with it. A reader might not be aware of the Texas tax incentive for this big of a project. They might be looking for locations to expand a restaurant or to develop more housing where there is demand.

 

Bell Textron clearly performed thousands of dollars of research to get to this point. There was finding the tax incentives, the concept, the land, and planning the construction and logistics, especially with government contracts involved. Because they completed all of that successfully, other developers and investors will benefit, provided they know about the opportunity in time to structure it. 

Some people still tell me they don’t have or need or have a research person or team. They are often the ones asking “How did they do that?”. I love serving those who understand the need and benefits and being “first in” on significant new income opportunities.

 

https://www.connectcre.com/stories/metronational-led-team-buys-houston-mixed-use-development/