YouSaid · the spoken record

Thomas Braziel

lines on the record: 56
first: 2021-12-19
most recent: 2021-12-19
sittings or episodes: 1
sources: podcast

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“Claims a year because he's a top attorney in Pennsylvania or wherever, Texas or Costa Rica, right? You've got that as a thing. And I really try to think of it as a service We want to offer people competitive pricing with whatever, there are other firms that do what we do, probably like 10 And so you need to do more than just price. You need to offer the personal solution. I always say when someone's selling their bankruptcy claim, like if you had a claim with your kombucha company.”
2021-12-19 · We Study Billionaires · TIP406: Finding Hidden Treasure w/ Thomas Braziel · IDENTIFIED FROM THE TRANSCRIPT
“We have to assert those rights. So that's when we do get really active. For the most part, we're not, but that's not the, I want to say the risk, but that's the service we provide. I really try to take, and this is, I guess you could think about maybe guys that do just regular sort of equity investing don't think about it this way. Really, I think of our business as a service business, and I try to empathize and think about what does that person need to accomplish? How can I help them accomplish it? And I think that empathy leads to better deal flow, more repeat business. Not that you want that much repeat business, but maybe repeat business from the professional. So for instance, like who's our client? Is it the claimant or is it that claimant's counsel who is going to have”
2021-12-19 · We Study Billionaires · TIP406: Finding Hidden Treasure w/ Thomas Braziel · IDENTIFIED FROM THE TRANSCRIPT
“I was like, hey, no one wants to do this. I'll do this. Hey, this is a nice little thing to be working on. So, what we do in that regard is, yeah, you normally think of it as like, I mean, the best way to think about it is like factoring or working capital solutions. Like your kambucha company has a client. The client goes bankrupt. You know, now that person owes you $120,000 invoice, hopefully if it's been delivered within 20 days of filing, we can pay $100,000 for that to make $120. If it's really a nasty bankruptcy and it's likely to be a zero or not a zero, but a very low recovery, maybe we can offer five to make $10 or maybe, you know, something. So the idea is not double our money. It depends on IRR. Underwritings have a very high IRR, as you can imagine, because there's a lot of work, there's a lot of administrative. And then you also have to push back on claims. I mean, we have claims all the time. I can wheel a claimant on right now. Come on stage here. And he could tell you, like, sometimes the debtors counsel really push back on claims. Sometimes totally unjustifiably.”
2021-12-19 · We Study Billionaires · TIP406: Finding Hidden Treasure w/ Thomas Braziel · IDENTIFIED FROM THE TRANSCRIPT
“So, yeah, so I'll back up a second and give some background. But the answer is decently active, depending upon the type of claim. Just to put all the cars on the table like, you know, I used to run a hedge fund. We did like the three buck in special situation. I was kind of trying to do a buffer partnership. So it was like, I had my value and then I had my workout. I didn't call them workouts in the original buffet partnership. Some call them special situations. I was also doing a little bit of stress on the side and I really started doing claims because I thought, hey, my parents are lawyers. I know a lot more than most people. And also I started really doing claims because I was running a tiny fund and I didn't have prime brokerage with Goldman's Act. So, you know, if you want to buy distressed bonds, you really have to have access to those brokers and to those deal flow. And when you're tiny, no one's going to open up an account and work with you. So I really started doing it out of like that was what was the”
2021-12-19 · We Study Billionaires · TIP406: Finding Hidden Treasure w/ Thomas Braziel · IDENTIFIED FROM THE TRANSCRIPT
“And to have deal flow with and to be able to get not only inbound but outbound. You know, you're sort of like, hey, how you doing? What have you been working on? Anything clients need capital? Any cases you think you're going to file? Or even we're involved in Bradsworth Energy, which is a large Texas co-op to file for bankruptcy. And to be able to transact $40 and $50 million trade claims, you need to kind of have the credibility to transact.”
2021-12-19 · We Study Billionaires · TIP406: Finding Hidden Treasure w/ Thomas Braziel · IDENTIFIED FROM THE TRANSCRIPT
“Guess in my mind, it would be anything where there's sort of like, I guess some people refer to them as hard catalyst, something that's happening that's going to dynamically change the value. You're not waiting for a bunch of quarters to play out. Some people would prefer to rebating companies spin out. Maybe that's a special situation. And I think spin outs are great. These are always sort of like if I can buy here for 100 and sell here for 300. Sometimes that means going public to private. Sometimes that means who knows, late stage secondaries, maybe that means you're doing specs, like all kind of things where there's some sort of quasi, maybe quasi arbitrage that can be realized through some hard cows that's going on for myself. I mean, I practice distress because people will give me money to do it. And I like to think that I have a little bit of an advantage over knowing the process really well and then having the network. Just like social networks are valuable in our field, in their incredibly valuable. I mean, it takes years to build up a network of credible people to do transactions with.”
2021-12-19 · We Study Billionaires · TIP406: Finding Hidden Treasure w/ Thomas Braziel · IDENTIFIED FROM THE TRANSCRIPT