Insight
Hamed: Income Share Agreements Are Inferior to Consumer Loans for Lenders
“The capital provider by themselves with just the income share agreement, wasn't getting properly compensated for how much risk they were taking. It was basically a mediocre or crappier version of a consumer loan, but you were getting paid either the same or sl…”
Insight
Hamed: CPG businesses should not be financed with debt
“So the best way to not get, not need a debt collector is to not finance a CPG business with debt.”
Insight
Hamed: Controlling critical operational utility grants de facto capital seniority
“You might be junior in the capital stack, but if you turn off the person's account, you suddenly became senior in the capital stack.”
Insight
Hamed: Loan-to-value underwriting fails when startup operational risk is binary
“It's very difficult to apply some loan to value or advance rate or however might finance the stuff. If there's binary risks that the whole thing might go poof.”
Prediction Not checkable as stated
Hamed: Prefab housing will inevitably produce winners despite early investor losses
“We think it's inevitable that that will become a space where there are successful winners. We just don't think, we think a lot of people are going to lose money along the way. And we'd rather just kind of wait to see the winner emerge.”
Insight
Hamed: Founders should build capital-efficient startups before pursuing capital-intensive ideas
“So I would go do the same thing that he did, which is go find another idea that's housing related, that is more capital efficient, build and sell that company. And then use that credibility to go raise a lot of capital out of the gate for a capital intensive o…”
Assertion Contradicted
Hamed: Research studies estimate Los Angeles needs over one million new homes
“Most studies or sort of research projects on even the city of LA would say LA needs like over a million new homes. And if you assume a starter home is 304 105 100,000 dollars that's a five hundred billion dollar opportunity.”
Insight
Hamed: Taking both operator risk and capital markets risk is a bad investment
“You can't take both operator risk and capital markets risk. That becomes a bad investment idea.”
Assertion Not checkable as stated
Hamed: Top-tier CPG businesses earn 10% to 20% EBITDA margins
“And if you're really, really good as a CPG business, you're earning 10 to 20% EBITDA margins.”
Insight
Hamed: Credit assets are often priced by who can hold them, not risk
“Unlike equity in credit assets, aren't always priced based on risk. They're often based on who's allowed to hold them.”
Insight
Hamed: Yield collapses once insurance companies can hold an asset class
“So as soon as an insurance company can hold a, like a, an established asset class, like auto or student or consumer, all the yield, all the return falls away.”
Insight
Hamed: Credit investing has no glory, like shooting penalty kicks
“Being in credit. It's like being a professional free throw shooter. You know, it's like, there's not, there's no glory or professional penalty kicker. Whenever I'm watching a soccer match, everybody loves PKs and I'm looking, I'm like, this reminds me of my jo…”
Assertion Partly supported
Hamed: Soho House Paused Miami and NYC Memberships Due to Overcrowding
“Even Soho House, by the way, which is, you know, the example you gave, like they had to cut off Miami and New York City memberships because those got too crowded.”
Assertion Supported
Hamed: Singapore Subsidizes Housing Near Parents to Cut Care Costs
“Like one of my favorite policies is in Singapore where you're economically incentivized to live closer to your parents. And the idea is like the government's going to save money because you have childcare and elderly care, like embedded residentially, like in …”
Insight
Hamed: Preferred equity lets founders pay dividends without fixed debt maturities
“If you raise preferred equity, you know, what you get mostly is you don't have a term on the investment. You know, you don't owe the money back at any given time, but you can still maybe like accrue an eight percent dividend or a 12% dividend and meet them in …”
Disclosure
CoVenture: Targets cash-positive firms with $50M-$150M revenue for hybrid fund
“The perfect business for us does something between fifty and one hundred fifty million dollars of revenues. You know, they're cashflow positive. They do seven, eight figures of EBITDA. They're growing above 10, 15%, probably under 50%.”
Disclosure
Hamed: CoVenture focuses on housing shortages and founder-investor price discovery
“So the two main themes that we've been spending time on are one, you know, the lack of housing and two, the price discovery between founders and investors.”
