@jasonmiller15 Do you really think these can go for a sub 6 cap?? The fungibility and rent covg concerns me.. and only getting 100-200bps wider than those Napa/edina deals w/ a 4.5 10y & a way shittier capital position? I feel like no one would touch these unless pulling something closer to 8
Stocks are dumping.
Gold is dumping.
Silver is dumping.
Crypto is dumping.
Bonds are dumping.
Even Oil is dumping.
If everything is dumping, where the hell is money going?
Not a popular take, but I think active real estate investing and operating is wildly difficult and should only be undertaken if you have (multiple) competitive advantages and skillsets.
Needs to be some combination of:
Natural Leadership
Ability & Willingness to Build Systems
Submarket Mastery
Operational Experience
Access to Capital
Great Partners and/or Staff
Long Time Horizon
As such, IMO most people shouldn’t touch real estate outside of a single family home or two in their back yard. Maybe a duplex or two.
You shouldn’t casually buy apartment buildings or strip malls or small bay industrial. These things are a business. And you’ll get shaken out quick unless you’re ready to run it like one.
Now if you buy a couple small houses and think, “hey, I freaking love this and would love to make a career out of it”. That’s great. Go buy a 4-8 unit and see how it feels. I’m all for giving it a shot.
Just don’t romanticize it.
I’m 13 years in and, while it’s been incredibly rewarding, it is still a difficult business that requires active “in the office daily” management.