We each see various aspects of the world differently. But one thing we may all agree on is that change is constant. Times change, situations change and people change. Dynamics and flexibility is a key to success.
For the last two years I have been on a very focused mission to scale from my single family portfolio to a multifamily investment firm. Already having experienced the fruits of cash flow, equity growth and community investment, I sought to grow my contributions to society on a grander scale. Since 2020, I have worked daily and tirelessly on this journey. I am proud of the fruits that this endeavor has yielded: 250+ blog articles, a dozen podcast guest appearances, many relationships, my first passive investment and a bigger vision than ever before.
I am proud of the progress. I believed that 2022 would be the year of my first syndication, but as I got closer to that goal, more insight and personal tension set in. This was the beginning of a very important shift for me.
💡The 2022 Pivot
Many do not know this, but my formal education is Marketing (Major) and Economics (Minor). Interestingly, although I was challenged by the subject of economics in my undergrad, I have been trending towards absolute nerdism on the subject over the last few months. As I dove into multifamily, I began to study macroeconomic trends – interest rates, the flow of money, and historic financial cycles – with greater rigor and interest. These activities do not simply serve an interest, but an absolute conviction that any good investor understands the big picture.
Real Estate As Part of A Portfolio
Real estate and real assets always have a place in an investment portfolio. However, today, many people are making money simply because they are riding a big wave. As the wave gets bigger, so does the participation. Real estate is not the only inflated asset. The stock market is very similar. In fact, many investors have left the stock market to invest in real assets because of the volatility and overpricing of equities. Still, real estate is hot…and in many cases too hot.
For example, in multifamily, there are many new syndicators trying to get their first deal and will do anything for it, even a bad deal. What is a bad deal? Investing strictly on the hope that people will pay a higher price for the asset in the future. There is little value add, but most importantly, the price paid is too high! Sure there is a shortage of housing nationwide, but that does not justify overpaying. I believe (and hope) that many will continue to do well. However, my belief is that as things correct over the next few years, some will find that their aggressive projections are hard to meet.
My statements are not to diminish the power of real estate and its rightful place in real estate in an investment portfolio, but to emphasize the importance of sticking to the fundamentals. It helps you sleep better at night. As for me, I want to zoom out and look at assets as a whole, passively investing in real estate syndications (not only multifamily, but others such as self-storage) while doing the same in other key assets and growing a well-balanced investment portfolio.
What To Expect ❓
Expect continued content on multifamily real estate, but also commercial real estate in general, personal investments and endeavors, macroeconomic trends and news, and even book reviews and more.
As I share this journey, my goal is to educate and encourage my followers, who consist largely of working professionals, to do the same. To make wise, sharp and relatively safe investment choices. For you and your family’s future. Stay tuned and let’s do this together!
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Rodney Robinson II