Name: Paul Oberschneider
Job title: CEO and founder of Hilltop Credit Partners
What I do: As CEO, the best use of my time is to make sure we are being productive and to look for ways of creating value for our investors and borrowers. I lay out strategy and make sure it gets executed by the right people, and I ensure the team have the resources to do their part and be successful.
Why I got into the property industry: By accident. I was travelling through Central and Eastern Europe on a holiday and ended up helping some acquaintances to start a bank. I also built my first flat in Estonia, which I ended up renting straight away, which led to building a second… and 18 years later I was building hotels and big box centres and grocery anchored retail. Just dumb luck, I guess.
How I did it: I understand where my limitations are, so I have always surrounded myself with a good core group of very dedicated people who were experts in their respective fields, and who bought into what we were doing. Everyone worked extremely hard.
My first proper job: I started as a runner on the CBOE and that led to becoming futures and equities trader on the American Stock Exchange and New York Futures Exchange. It was definitely an experience where you had to think quickly and take decisions without the luxury of time and which probably led me onto a specific path where I manage risk as part of my daily job now.
My first big break: Writing a business plan for an entrepreneur who needed a loan and then getting paid for it, which led to a second and a third. It always starts with one thing. If one works, and two works, then you have something. Today everyone wants to do big. Talk about scale…. I like to do one and take it from there.
My inspiration(s): Doing more. Being better and constantly creating. I’m inspired by innovation.
The biggest challenge I’ve encountered to date: Having to start over. I was lucky to sell all my property-related businesses just days before the GFC. We had built a substantial business across six countries and had a great group of people, but when I switched off the cash machine and retired for 12 years all that was gone. Starting from zero again has been much harder, especially in a far more competitive environment and where we are all sailing into the wind.
My greatest achievement/proudest moment to date: Standing at the crossroads of a large intersection one evening and seeing the volumes of cars and people going in and out of a big box retail and shopping destination we had built, and thinking about the amount of revenue and taxes that it provided from a bunch of former potato fields that no one wanted to buy. I think on those deals we achieved 11x for our investors.
The biggest misconception people have about the property industry: Is that it’s complicated. I think business schools and the industry create all sorts of ridiculous acronyms and language to explain relatively simple concepts. Bottom line is buy low, sell high, pay late and collect early. You always make money on the entry price, and if you’re a lender always have security you can attach to. The rest is just PowerPoint and maths. Some of course do it better than others. I think anyone can spend/invest other people’s money. It’s about managing risk and being hedged.
My biggest bugbear about the industry/the one thing I would change about the industry: I’m a senior citizen by age standards (not quite an OAP) so I’ve fortunate to have been through multiple market cycles. This has taught me that when the wheels come off the bus you need to get dirty and fix it. Today, there are too many people who can spreadsheet the chrome off a bus, but don’t want to get dirty and have no clue how to work stuff out when it goes wrong. Like I said, it’s easy to spend other people’s money. The key is making sure you know what to do, and what not to do, when things go wrong. A do nothing and wait and see position and throw more money at the problem never works.
Why I’m so passionate about ESG: We all need to be more responsible for our built environment and at Hilltop Credit Partners we lend and invest with purpose. Being mindful of our environmental footprint will help us become more sustainable, create positive relationships, and maintain a safe and friendly world to live in. We’re planning for long-term engagement not just the here and now.
Who I’d invite, living or dead, to a dinner party: Einstein is a popular guy so not sure he’d turn up, but probably Benjamin Franklin, Andrew Carnegie, Chopin and Cosimo Medici.
What I do in my downtime: Play tennis, travel, and hang out with my son and horses – I used to own two ranches in Argentina so I love getting back to nature and riding.
The job I’d be doing if I was not doing this: Making feature films. I could see myself as a Quentin Tarantino!
My advice for someone just starting out: Just show up and be flexible. You never know what’s around the corner, plans never tend to work out the way you think they will. Ever.
My motto/mantra: Don’t look down. Surrender to win. Make haste slowly (Festina lente).
