In this episode, Wayne talks to Ethan Gao, who is an attorney, key principal, and general partner. He has made over 300 private loans secured by real estate, invested in over 100 single-family “fix and flips” and is a general partner on multiple commercial and multi-family projects totaling over 900 units. His primary role on deals is loan guarantor, key principal, or gap funder. Ethan, both personally and through his private equity fund Good Bull Investments LP and Good Bull Lending, LLC, has invested in commercial properties totaling over $25 million. 

Ethan graduated from Cornell University with a BA in Economics, in 2003 at the age of 19. Ethan was admitted to Columbia Law at 19 and graduated at 22. He worked on Wall Street in financial institutions focusing on billion-dollar mergers and acquisitions for several years before transitioning to being a professional investor and entrepreneur in 2016. He lives in Houston, TX with his wife, whom he met on the first day of class at Cornell in 2000, and their five children. 

Topics on Today’s Episode: 

• How and why Ethan went from successful Wall Street lawyer to Houston real estate investor. How different life stages change priorities and perspectives. 
• The top reasons why staying on the passive side of real estate investment works for attorneys. Ethan took the approach of finding operators to lend money to or financially back, to limit his time commitments while working demanding corporate jobs. 
• Perspectives on single-family distress sales and “fix and flip” and why he prefers working as a loan guarantor. 
• Leveraging networking to meet personal goals. He went to meetings and took cards, emailed them back, and was able to form valuable connections. One person that is less relevant often can refer you to someone who is a perfect fit for what you’re trying to do. 
• The current market environment has caused deal flow to slow down dramatically for single-family “fix and flip” transactions. Negotiating all the services and aspects relating to purchasing a property is valuable-mortgage fees, inspection fees, etc. can improve the terms of the transaction. 
• How the financial system works in multi-family deals and the role of the key principal/loan guarantor. Liquid funds and net worth requirements for multi-family lending.