Real Estate Investment Presentation with Rob Gritz

Executive Summary

Rob Gritz, CEO of Texas Global Equity, presented a comprehensive real estate investment opportunity to Gary Sheng's network, showcasing two prime Austin development sites acquired at significant discounts during the market downturn. The conversation revealed sophisticated financing structures, government partnerships, and potential for extraordinary returns while also covering personal relationships, upcoming networking events, and strategic introductions.

Major Topics Covered

I. Real Estate Investment Opportunity Presentation

The Properties

Third and Congress ($46M acquisition)

• 1.2 acres surrounding the prestigious Austonian building
• Previously under contract to Wildcat PE for $95M - "They offered me half. They said, come in and be our 50-50 partner... if I could get the receiver to drop the price from 95 to 75."
• Rob won it solo: "I did it by myself"
• Plans for tallest building west of Chicago (1,300+ feet): "It'll be the tallest building west of Chicago in the whole United States, including anything in California"

99 Trinity ($41M acquisition)

• Located between Four Seasons and future Waterline development
• Warehouse space capable of hosting 4,000-person events
• Rob on the location: "We iconically punctuate the base that comes off the lake and the crown"

Market Positioning & Strategy

Rob's philosophy on market timing: "When the market is down, let me tell you something. You talk about inefficiency when you look market by market... when it's in a trough, that's when you fucking die, you're probably going to be the only one"

On competitor failures: "All developers use other people's money. So when the market is down... Capital partners will say to them, no fucking way are we going to partner with you and buy $100 million worth of development land until and unless you tell us that you have it all worked out to go vertical for $1.6 billion"

His advantage: "The fallacy and that fucked up incapacity of most people in our industry is they're so fucking obtuse they can't separate the buy moment of take down the dirt at discount from the go vertical moment"

Financial Structure

• $87M total acquisition cost for both properties
• $60M debt financing at SOFR+500 (~8%) - "SOFR plus 500, it's about 8%"
• $35M equity needed ($20M Third/Congress, $15M Trinity)
• Properties are cash flow positive: "Third in Congress carries itself, generates cash sufficient to pay the interest"

Rob on the financing advantage: "It is literally impossible for us to get blown up. It is literally impossible for us to do anything but sit in the catbird seat for three years while the market corrects"

Investment Returns Projection

On the value creation model: "You sign a subscription agreement to our property fund tomorrow and you plunk down $10 million. In two years, we take that subscription agreement... And we hand you back a stock certificate for 30 million"

Comparison to venture capital: "It ain't never going back down... you go from an A round to a B round here, you wake up in the morning, your dirt's always gonna be there"

II. Government Partnerships & Strategic Advantages

City Relationships

Rob on their government partnerships: "We are more closely allied with the city of Austin, the state of Texas, and the county of Travis than any other commercial island... We have official formal partnership status through RFP as the city of Austin's public-private partner"

Infrastructure Investments Benefiting Properties

• $7B I-35 burial project: "They're putting it underground in a four-story chamber"
• $250M Waller Creek trail project: Already under construction
• $2.5B UT medical facility: "Dell Medical, MD Anderson Medical"

Rob's assessment: "$12 billion of city-state capital infusion is pounding in immediately around the sites that we're buying at a huge discount"

III. Social Impact & Community Development

Addressing Historical Inequities

Rob's "2028 Plan": "We are actively reintegrating black East Austin to downtown... So we are actively developing the corridor of 12th and 11th so that we're actively developing black East Austin in conjunction with what we're doing here"

On the historical context: "In 1928, if you were black, a law was passed that you couldn't get a utility bill, and you couldn't get a water bill, unless you were east of I-35"

Community Partnerships

• Female African-American development partner
• Partnerships with Ebenezer Church and St. James Church covering 30+ acres
• Griffin and Gospel project in the African-American cultural district

IV. Personal Relationships & Networking

Matt Holm's Marriage Situation

Matt's marital challenges: "She told me she felt like I was not going to be a fit for her. She had organically sort of pulled away because I was so busy. And then she just didn't feel emotionally attached to me"

His proposed solution: "When you get back, we're going to do something that's called a post-nup agreement... we go to an attorney... And figure out how to evenly divide all of this stuff totally fairly"

Gary's assessment: "You're the smartest dude"

Matt's Spain Travel

Matt's wife and daughter extended their stay: "They just extended their stay for another two weeks" His perspective on the distance: "Better? It's gotten better. It could just be that, you know, we're on different continents"

On women and competition: "I think women in general need to see that... Competition... Women are so social. I swear to God, that increased my value in her eyes, seeing these girls"

Zachary's Dating Insights

Zachary on women's dating challenges: "The data that women get from dating is so awful... Because some guys will put in a lot of effort to just sleep with them"

"Being able to correlate all these guys hitting on them, they don't really know what that means. I can imagine being a girl being very difficult to figure out who you actually want to invest in"

V. Upcoming Events & Strategic Introductions

All In Summit (September 8-10)

Zachary promoting the summit: "Last year, one day of speakers was worth over a trillion dollars. Like the people speaking on stage was over a trillion dollars on a personal network"

On the scale: "This year, 3,000... We had over 200 security guards"

Party budget: "I built a budget of five million per night for a party budget, five million dollar parties each of the three nights"

Potential Investor Introductions

Zachary Yonnas (August 15 visit) Zachary: "I have a guy who writes $250 million checks a month... He founded 500 startups, then left. Built up the amino arm of Social Capital"

Ford Smith Zachary: "Ford, he has, like, really rich oil parents... And he has this whole network of oil people... his first ever SPV was, like, a $10 million round in SpaceX"

Brian Sheffield Matt: "Brian Sheffield... He committed my friend Mitch, who owns Evo... His second ever pitch was Brian Sheffield. And Brian said in the meeting, don't take any more meetings. You've got 60 million on your terms"

VI. Technology & Other Ventures

Zachary's Nicotine Company Work

Zachary on customer acquisition improvements: "Their customer acquisition cost. Was $83... I made some animations for them... Went from $83. To $15"

On the company structure: "For $200,000. Plus 5% of the company... If I want. After the 3 months. We both like each other. I can shift into a different deal"

Sandy's Previous Company

Zachary on Sandy's experience: "He made this company called Better Place, which is like instead of having like a cemetery, they built a forest... The company got to a $380 million valuation. They replaced the CEO and it went out of business in the next 12 months"

VII. Gary's Spiritual & Professional Work

Faith Background

Gary: "I'm borderline a priest... Non-denominational Christian. I don't like the word Protestant, because I'm not protesting the Catholic Church. I like the Catholic Church"

On church growth: "I'm pretty much connected to all the churches that are growing way too fast"

Tulsa & Lael Alexander Connection

Gary on the Tulsa opportunity: "A group of billionaires, including the George Washington Stutz family... wired him $60 million just to say thank you for doing what you're doing"

"They trust him to basically make Tulsa the greatest comeback story for the black community ever"

Trump Administration Work

Gary: "I advise the faith office... I'll probably be in the White House on Monday"

VIII. Austin Real Estate Market Analysis

Market Conditions

Rob on Austin's perceived decline: "People are like, oh, Austin's done... What they're not saying is that Austin grew by 20-plus percent per year every year for 10 years"

His long-term thesis: "It has never happened in the history of the United States that a single city has gone from number 40 to number 10. And the simple reality is that doesn't stop because you have a down year"

On Texas's economic position: "We've got Houston, Dallas, Austin, San Antonio... We're four of the top 10. This is an $8 trillion economy. Bigger than the economy of Russia, Italy, Canada"

Development Competition

Rob on other developers: "Developers are the brokest ass fucks on the planet. No developers have money"

On market inefficiency: "The brokest developers, in order to take the ballsy action that we took, they're dependent upon capital partners that are both equity and debt"

IX. Key Strategic Insights

Investment Philosophy

Rob: "We took that bold action, we won both auctions and out of the woodwork because we took the action, came four top lenders willing to give us $60 million"

On risk management: "We're double-covered because we can meet our nut out of cash flow, and we're double-covered because we can meet our nut out of the interest reserve"

Network Effects

The conversation revealed extensive interconnections:

• Gary's access to Trump administration and faith communities
• Zachary's connections to international capital and All In Summit
• Matt's Tesla/real estate network
• Rob's government and development partnerships

Notable Revelations

1. Alpha School Connection: Rob revealed he owns the building where Alpha School rents space, which Gary didn't know
2. John Kluge Background: Rob worked for the "richest man in America" who was largely unknown to the public
3. Nate Paul Properties: The acquisitions came from the controversial developer's receivership
4. All In Summit Scale: $5M per night party budget, 3,000 attendees, $1T in speaker net worth

Follow-up Actions Discussed

1. Rob to attend All In Summit (September 8-10)
2. Zachary to introduce Rob to Ford Smith and potentially Zachary Yonnas
3. Gary to potentially visit Tulsa for the Pegasus Plan development
4. Matt's Miami trip to see Messi with his son
5. Pool party at Matt's house while he's away

Overall Assessment

This conversation revealed a sophisticated real estate investment opportunity at market bottom, extensive networking potential across tech/crypto/real estate/government sectors, and personal relationship dynamics affecting business decisions. The scale of the opportunity (potential $1B+ development values) combined with the discount pricing (67% below recent contract prices) and government backing represents a significant wealth creation opportunity for Gary's network.

The interpersonal dynamics - Matt's marriage challenges, Zachary's dating insights, Gary's spiritual work, and Rob's financial constraints despite massive deals - provided context for how personal and professional lives intersect in high-net-worth circles.