Skimping… Will cost cutting and skimping help you save enough to become a millionaire? Cutting costs can definitely help you save money and cut debt. But, will it help you to save enough to become wealthy and financially independent? And even if it could, how long would it take to get you there? Is brewing…
Imagine you are trying to buy a piece of real estate. Imagine it was a 20 unit multifamily, and you think the numbers are solid and you believe it would be a good investment. But you have a problem—you have no money. So you give up, thinking it was impossible. Instead you go about your…
The way U.S. companies provide for retiring workers has been shifting over the past thirty years and the shift is from offering traditional pensions to dropping pension plans and transferring the responsibility to individuals to plan and manage their own retirement savings. The National Public Pension Coalition reports that as late as the…
What is Your Investment Criteria? For investors active and passive, this is the “meat and potatoes” question. How much return on my invested capital am I seeking? That basically boils down to a percentage per year (that may or may not include IRR) and that number may be higher or lower depending on the varying…
Many of the top motivational speakers will tell you that the ultra wealthy get up way before the rest of the world.. even as early as 4am. Many have spoken the following: We don’t sleep when we are tired, we sleep when we are done! I can tell you from experience that is much easier…
The above chart depicts the stock market cycles from the early 1990s to about 2016. Very evident that stock prices rise and fall and rise again over time. The chart above depicts Commercial Real Estate values and also shows that prices are cyclical, rising and falling and ultimately rising again forming a long term upward…
In Part 1, we covered core and core+ strategies. In this Part 2, we’ll go over value-added and opportunistic strategies. Both go up on the risks and returns spectrum. Value-Add: Medium-to-high-risk/medium-return strategy. This involves acquiring an existing asset with specific plan to spend meaningful dollars to upgrade an asset’s aesthetics (could be interior or exterior),…
Analysis Paralysis The perfect deal does not exist. Doing too much research on a property can stop you from taking action. If you dive into a deal too deeply, you will always find a reason NOT to do a deal. By no means does this mean being lax on the due diligence. There is a…
not a menu item, though I could envision a whopper be named after it. But personally I like the imagery of a layered cake much more…Yum! In financial parlance, Capital Stack (aka Capital Structure) is simply the aggregation of every type of funding – common equity, preferred equity, mezzanine and senior debts, that goes into…
1. Core: Core real estates generally employ no to low leverage (0-40%), consist of low-risk/low-return assets, earning premium return above that on the NCREIF Index with a meaningful current income component. These assets are often located in gateway, primary cities (e.g. NYC, L.A., Washington DC, London, Hong Kong, etc), are newly-built, fully stabilized, either fully…