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VC's investing in real estate, that a new one. Care to share any data or sources on that?

edu 3y ago
Any good investor will diversify their investments, so maybe the funds themselves are not investing in real date but the investors of the funds and probably the managers do it.
api 3y ago
More likely that their LPs are the ones investing in both.
- voisin 3y ago
  And GPs would risk their promotes on their investment returns to benefit their LPs unrelated investments? Give your head a shake…
brigadier132 3y ago
The fund isn't doing the investing in real estate, the individuals controlling the funds are. Anyway, that's why I said it's a conspiracy theory but the incentives line up like I mentioned in another comment. But it's a conspiracy theory that doesn't even require a explicit coordination, just people acting in their own self interest.
- voisin 3y ago
  If you argue that WFH improves productivity why would they risk their company investment returns in favour of their real estate returns?
  - uni_rule 3y ago
    Because that would involve these people caring about their "boots on the ground" or thinking in the long term. Those two things to happen less and less as things scale up and become public respectively.
  - smarmgoblin 3y ago
    I think they realize the truth which is that productive people can be productive anywhere. Do they care about the toll a 2-hour commute takes on the workers or how that translates into deliverables and timelines? Ask yourself if this sounds likely. Also they understand that most of these companies are 100% losses anyway, but real estate investments are much less likely to go to zero. (Plus rent is just cold hard cash.)
nerfbatplz 3y ago
David Sachs whinges about his SF real estate portfolio nearly every episode of the all in podcast.
porlb 3y ago
Evidence human behavior does not align with your awareness is all over. Why would you accept my data without checking the methods? The onus is on you to prove a very reasonable human behavior false. Whole lot of people saying we ought not fiddle kids been arrested for diddling kids. Reasonable real world, if emotionally “wrong” feeling does not make the notion wrong. You want data the sun rose in the east, go outside. So many demand technical correctness in others, think without checking themselves, they know what’s true.

edu 3y ago

Any good investor will diversify their investments, so maybe the funds themselves are not investing in real date but the investors of the funds and probably the managers do it.

api 3y ago

More likely that their LPs are the ones investing in both.

voisin 3y ago
And GPs would risk their promotes on their investment returns to benefit their LPs unrelated investments? Give your head a shake…

brigadier132 3y ago

The fund isn't doing the investing in real estate, the individuals controlling the funds are. Anyway, that's why I said it's a conspiracy theory but the incentives line up like I mentioned in another comment. But it's a conspiracy theory that doesn't even require a explicit coordination, just people acting in their own self interest.

voisin 3y ago
If you argue that WFH improves productivity why would they risk their company investment returns in favour of their real estate returns?
- uni_rule 3y ago
  Because that would involve these people caring about their "boots on the ground" or thinking in the long term. Those two things to happen less and less as things scale up and become public respectively.
- smarmgoblin 3y ago
  I think they realize the truth which is that productive people can be productive anywhere. Do they care about the toll a 2-hour commute takes on the workers or how that translates into deliverables and timelines? Ask yourself if this sounds likely. Also they understand that most of these companies are 100% losses anyway, but real estate investments are much less likely to go to zero. (Plus rent is just cold hard cash.)

nerfbatplz 3y ago

David Sachs whinges about his SF real estate portfolio nearly every episode of the all in podcast.

porlb 3y ago

Evidence human behavior does not align with your awareness is all over. Why would you accept my data without checking the methods? The onus is on you to prove a very reasonable human behavior false. Whole lot of people saying we ought not fiddle kids been arrested for diddling kids. Reasonable real world, if emotionally “wrong” feeling does not make the notion wrong. You want data the sun rose in the east, go outside. So many demand technical correctness in others, think without checking themselves, they know what’s true.