The Journey From Asset To Portfolio.

Entrepreneur of the Week – Post 3

So yesterday, we dove into portfolio structure — or the journey from a single asset to a full portfolio. A few clarifications:

I allocate only 10% of my capital to high-risk money, such as startup investments — and even then, I never exceed $50–60K per single investment.

At least 50% of the portfolio should be liquid, meaning convertible to cash within six months.

There will always be investments like a “prime apartment overlooking the Western Wall” (as an example) — assets that are always marketable.

And now, about investors (women investors, specifically)

(If you’re worried I’ve turned into Merav Michaeli — don’t be 😄 This is simply my lived reality.)

Since most of the audience here consists of entrepreneurs, but some are also passive investors, I suggest looking at what follows from two perspectives:

Who do you want your investors to be?

And what kind of investor are you (if you invest)?

The ideal investor is a mature investor.

Mature in the sense that she understands the risks involved in investing, knows the basic terminology, and understands the flexibility required along the way.

Examples:

A property can sit vacant

Renovations can be delayed for months

Construction costs can change

But there are conditions that never change, and these are what protect investors. Because there is only one thing that truly matters:
Location, location, location.

A balcony that’s too big and unused, windows that are too small or too large, renovations that go too far — each of these mistakes can cost money, but they’re fixable.
Real estate is forgiving by nature. Hold long enough, and almost everything can be fixed — except location.

The three winning locations in every city worldwide:

Where students spend time

Where tourists circulate

Where older people live

If your project is in one of these locations — your investors are protected.

A note on raising capital

When you go looking for investors, remember:
You don’t go fishing with chocolate cake. Fish prefer bait made of insects or dried fish.

What investors look for:

That their principal returns in full

That there’s a clear exit option if needed

And that there’s ongoing reporting and transparency

A word (and a half) about emotional maturity

Inexperienced investors often carry a collection of fears — endless versions of “What if?”
On the other hand, experienced investors may carry burn scars from past deals and need a lot of reassurance and trust.

I’m not very good with low-confidence investors who fear that every possible disaster will happen specifically in their deal.
That said — when I do succeed with such an investor, the satisfaction is enormous.

Finally, there are investors who love lots of details.
I’m terrible with details — so I always bring in partners who excel at the small stuff.

But that’s for tomorrow.
Partners and partnerships.

I’m attaching a wonderful photo — the secret lies in the small details.
Whoever guesses correctly wins two days in this beloved city — on me.