This week’s theme: Real Estate Development. Pretend you’re a developer (or maybe you are). There will be a true-or-false question every day.
Here’s the first:
Real Estate Developers like to use OPM. OPM means Operating Program Manual.
True or False ?
.
Answer tomorrow morning.
False: OPM means Other People’s Money.
Why use your more of your own money then you have to when others will lend you theirs at current historical low rates? Take the same money you have and spread it over 2 or 3 projects instead of just one and maximize profits.
Lesson I remember my dad teaching me years ago on why JP didn’t own his stores, with the amount of money it took to buy and open a supermarket, he could lease and open 3 supermarkets, and guess which would make him more money.
You bet, Joe. Why use your own, except if you have a mega-monster cash pile like bcIMC. And come to think of it, their money is actually Other People’s Money — namely pension funds.