Published on August 14th, 2020 | by Brandon H0
David Ebrahimzadeh is the President of Corniche Capital. Corniche Capital is a private equity and real estate investment firm. The company has interests in multifamily and office space, investing in new projects as well as those with distressed debt. Ebrahimzadeh has many years of experience in each sector, and his insights are valued in the community.
The company also invests in properties located in foreign countries. Ebrahimzadeh’s experience makes it possible for him to deal easily with international real estate, and his company has a solid portfolio of buildings overseas.
A private equity firm buys companies that may be in distress, provides them with an injection of much-needed capital, and takes a controlling interest in hopes of turning them around and recouping their investment. Corniche Capital has helped many companies enhance their profitability and become successful.
David Ebrahimzadeh is a seasoned professional with a good track record for investments. He will continue to build his company’s portfolio and use his influence wisely.
What are your favorite books?
My favorite business books are The Private Equity Playbook by Adam Coffey and King of Capital by David Carey and John Morris. The Private Equity Playbook is a book that I recommend to younger and inexperienced people who want to be involved in private equity. It is an exciting field, but there are pitfalls for the unwary. I have also recommended King of Capital to my friends and colleagues. It provides a good cautionary tale about what can go wrong if you are not careful to follow proper procedures.
What’s your favorite film?
My favorite film is The Big Short. It provides a lighthearted look at one of the most difficult periods in the modern American economy, the housing bubble and the recession of 2007-2008. The movie is a good way to start conversations about finance, and it is also quite funny at times even though the time period it reflects was serious for most people. I enjoyed this film very much and I hope that your readers will as well.
I also enjoy biographies and historical films. One of the biography films that I have enjoyed the most is Enron: The Smartest Guys in the Room. It shows what can happen if a company is not cautious with its business and if it is underhanded in its dealings.
What do you wish you knew before starting a business?
When I first started Corniche Capital, I had a great deal of experience buying and selling commercial and multifamily real estate but only a little experience with running a business on my own. I had to learn a lot in a short time. I wish I had known how to hire good employees. I did not have a human resources professional when I started out, and I made some mistakes.
I also wish I had understood corporate taxes more completely, both here and abroad. The interaction between U.S. taxes and those from a foreign country is complex. You really have to hire someone knowledgeable in each country and have them talk to each other in order to get your numbers to work. It is not worth being audited in two countries at the same time.
What is your favorite thing about working in your industry?
I enjoy helping companies revive their potential. Frequently, the companies we invest in on the private equity side of our business are in some kind of trouble. They need outside cash, and they need it quickly. It is good to know that we are helping to preserve jobs and keep companies running, even if we sometimes must make difficult decisions to help save the companies. I get a great deal of personal satisfaction out of successful deals.
I also enjoy the adventure of looking at international real estate. It is a good reason to travel and see the world while exploring what is available. When I do get to travel again, I’m sure there will be plenty of good prospects for purchase.
What’s one piece of advice you can share with others?
Always have a plan for what you can do if your business is not succeeding. Sadly, up to half of all new businesses fail in the first five years, a statistic that most new business owners would prefer not to consider. Having a backup plan can help to protect your income as well as that of your employees. You also need to have a good “nest egg” of available cash, beyond your non-liquid holdings like real estate.
I would also add that new businesses should always be careful with their taxes. Always keep detailed records of every expense and revenue. If you don’t, you could be setting yourself up for serious fines or other legal action.