You are scared to invest in real estate right now.
Banks collapsing and rising interest rates don't help.
But you can use these events to your advantage.
As it created these top 5 real estate opportunities:
One of my clients submitted an offer on a property in 2020. To strengthen his surety of close, he mentioned having $39M in cash and that he could buy the property all cash if financing fell through.
I asked him if it was legitimately sitting in a single bank account and if he had concerns not having FDIC insurance.
He explained that he had a Certificate of Deposit Account Registry Service (CDARS). His bank manages purchases of CDs at multiple banks allowing FDIC coverage of up to $50M. He worked with one person/bank and received one statement and rate of return, despite having his cash spread out over many banks. He could withdrawal cash at any time and forfeit the interest for that month.
Relevant right now with SVB’s run. Make sure you’re insured by the FDIC!
One of the biggest mistakes I see beginners make is not understanding the market cap rate
If you don’t understand how the market values the property (the market cap rate), you’re going to lose money
Here’s why:
Construction employment has (so far) saved the economy from recession.
This thread explains why this happened, why it won’t last much longer, and how this extra lag increased the risk of a hard landing.
1/
I have a lot of free time. Mostly ski, sometimes work.
Made possible by a badass team of 3 in Venezuela & Peru, who will manage 8 properties to🤞generate:
$1,400,000 revenue &
$1,000,000 net operating income this yr
The people, processes, & tools making it happen:⬇️
Zara founder Amancio Ortega is the richest person in Spain.
From his $75.3 billon dollar fortune, he’s invested up to $17.2 billion in commercial real estate.
Here are the 5 craziest properties he owns:
Capitalism is brutal
If you invest, you MUST know how to identify a moat
Here are 9 financial “rules of thumb” that Warren Buffett uses to tell if a company has one:
Farmlands in the west and south will lose value because of the weather change. The land value shift will go to American farmland in the north and the east. https://t.co/s6JorXNPgM
Letters of Intent, or LOIs, are used by 99% of business buyers to make an offer on a business.
But most people don’t know how to write a good one.
As an M&A lawyer, I’ve written or reviewed dozens upon dozens of LOIs.
Here are 12 LOI basics you should know.
A 👇🧵
A 26-year-old programmer built a $1 billion app in two years after following his girlfriend's advice.
This is the story of how a failed passion project turned into one of the most iconic apps of our time:
The tax benefits of real estate make it a phenomenal wealth building tool
It's not my favorite asset class, but it's still more tax advantaged than pretty much any other type of investment out there
Here's an overview of all the advantages the government gives RE investors: