brandon morales

Joshua 1:9 // Cornell 23’

[brandon morales @morbrandon10]

I have proudly accepted my offer to play Division 1 Soccer at Cornell University (Ivy League). Extremely proud to represent The Big Red! Thank you to all my friends and family for your support. The dream lives on!!

Check out my website:
https://t.co/Hw2JbACWVS

[RYAN GARCIA @RyanGarcia]

Don’t let the pressure of the World stop you from praising Jesus, whoever denies him in front of others, he will deny in front of the Father who is In heaven.

[brandon morales @morbrandon10]

@realEstateTrent Sirloin Burrito from Taco Palenque is a must

[StripMallGuy @realEstateTrent]

Here’s how “trusted” property managers quietly steal massive amounts of money

[brandon morales @morbrandon10]

@realEstateTrent Have fun! Enjoy The Statler Hotel and all that Ithaca has to offer!

[brandon morales @morbrandon10]

@AndrewErickson_ Dowdle not that scary am I right @diegorocaat

[StripMallGuy @realEstateTrent]

The IRR metric can be a wild game of smoke and mirrors.

So many people talk about IRR like it’s the holy grail - the ultimate test of how a deal performed.

But the IRR can be wildly misleading. And worse, it can be manipulated pretty easily.

One example of how this happens:

Say a fund is earning a real net IRR of 8%.

But instead of calling capital from investors, they use a $40M credit line to buy the first few deals. They wait quite a while before calling equity.

So what happens?

The IRR jumps to 12% - without the actual returns changing at all.

It’s the same deals. The same profit. But because the “start” of the investor capital clock gets pushed later, the IRR math makes it look better.

Meanwhile, they’re paying 9% interest on the credit line the whole time - meaning real profit actually went down. But the IRR went up.

The flip side:

If you hold a deal for 20 years, your IRR will very likely look much worse than if you flipped it in 5. That’s just how the formula works - it often rewards speed, not size

But over 20 years, you might collect way more cash, pay down debt, compound income, and end up with a far bigger win.

So what actually matters more to great investors?

Seasoned investors often ask two things before they ask about IRR -

What was the multiple?

What was the unlevered yield on cost?

They want to know how much money you made. And how well the deals worked - not how clever your timing or financing was.

IRR has its place. But without context, it can be more marketing than metric.

As the saying goes:

You can’t eat IRR.

[StripMallGuy @realEstateTrent]

Being able to do basic math in your head quickly is an immensely underrated superpower.

[Poncho De Nigris @_PonchoDeNigris]

Yo me alegro cuando un amigo logra sus metas, triunfa en la vida y es feliz … los amigos no compiten, se apoyan.

[HLTCO @HLTCO]

Luis Enrique: “My daughter came to live with us for 9 wonderful years. We have a thousand memories of her; incredible things. My mum didn’t have pictures of her until I said “Mum you have to, she’s alive because we remember her.”

A hugely strong man. ❤️

[PUMAS @PumasMX]

¡Qué gusto tenerte de vuelta! 🤩

#DePumasSoy #OhUniversidad #ChampionsCup

[Words of Wise | Mindset Coach @Wordofwise_]

The Law of Attraction

[Fabrizio Romano @FabrizioRomano]

🚨🇲🇽 Sergio Ramos to Rayados, here we go! Pre-contract signed today, he’s set to travel to Mexico for formal steps.

After Sevilla chapter, Ramos will play in Mexican league as he joins on free transfer.

[The Real Estate God @TheRealEstateG6]

“How do I analyze a deal in 5 minutes?”

// The Art of the Back of the Envelope //

BOE’s are extremely easy

Basically what you’ll be doing is:
1. Multiplying market rents by the property’s unit count 2. Applying a vacancy factor to get total revenue 3. Multiplying the total revenue by the market NOI margin to get NOI
4. Dividing the NOI by your total cost in the deal to get your stabilized yield
5. Comparing your stabilized yield to the market cap rate (greater than 150 bp spread means it pencils)

Here’s an example:

Let’s assume that you’re underwriting a 10-unit deal in a market with a 5% vacancy rate where market rents are $1,000, the NOI margin is 65% and the market cap rate is 7%. You’d be buying the property for $700k and spending $100k on renovations

10 units * 12 months * $1,000 market rents = $120,000 $120,000 * 95% occupancy = $114,000 total revenue

$114,000 total revenue * 65% NOI margin = $74,100 NOI

$74,100 NOI / $800k total cost = 9.3% stabilized yield

9.3% is 230 basis points above the 7% market cap rate, which means the deal pencils

Why does it pencil?

The property would be worth $74,100 / 7% market cap rate = $1,058,571, which would be over $250k of profit

Simple. Didn’t even take 5 minutes - you’ve analyzed the deal in about 30 seconds So what’s the catch?

The hard part of the process is making sure you have the right assumptions. If the market rent, market NOI margin or market cap rate is off, your numbers are going to be wildly inaccurate

That’s why you have to know your market cold when you’re buying real estate. The math is as simple as it gets, the money is in having the right process to arrive at the correct assumptions

If you’d like to learn how to underwrite and buy deals like this (or even smaller deals, my first deal was $200k and I only used $2,500 of my own capital) apply in the next tweet for the Acquisitions Bootcamp to work 1-on-1 with me

[Words of Wise | Mindset Coach @Wordofwise_]

Discipline

[Leaders 𝕏 Junction @LeadersJunction]

If you're lazy and lack discipline, hear this out‼️

[StripMallGuy @realEstateTrent]

A special message from all of us in the commercial real estate industry.

To all of our friends who are not in real estate:

[StripMallGuy @realEstateTrent]

Here’s to the first-generation parents who took a risk and moved to America to accept a job offer.

They did it in hopes of unlocking opportunities for future generations that otherwise wouldn’t have been possible.

But the personal sacrifice was huge.

They left behind lifelong friends and familiar social norms for a culture most never truly fit into.

They became strangers in a strange land for the rest of their lives. The language was a barrier. They never picked up the local slang. They never felt like they fit in with the other parents. Their accents were on their minds a lot.

And as their kids grew up within American culture, even relating to them often became a challenge.

They watched as their children attended great schools, became lawyers and doctors. They joined great companies, created jobs, and became leaders.

And in the background, as they watched their now fully American children make an impact on the world, they never once thought about those sacrifices.

Because it worked.

Future generations will be born into a world with far greater opportunities than where they came from.

Almost nobody will ever think of the sacrifice their great-grandpa and great-grandma made to make it possible.

But for this moment—here’s to acknowledging that sacrifice.

[Charlotte Men's Soccer @CharlotteMSoc]

BRIGHAM LARSEN HAS DONE IT‼️

BACK-TO-BACK BABY

#GoldStandard⛏

[brandon morales @morbrandon10]

@realEstateTrent Apart from you and @EstateRanger which I immediately followed after listening to your interview with @kylematthewsceo if I want to learn more about Real Estate Finance and Deal making what accounts would you recommend I follow? Also, any book recommendations?