Risk is a fundamental characteristic of investing and it is precisely risk that rewards investors. But not all risks are created equally. Knowing these two types of risks are useful to both operators and passive investors and can help limit unnecessary trouble or difficulty down the road. 1️⃣ Controllable Risks These types of risks are […]
The Labor Department recently stated that the Consumer Price Index jumped 7% last year. That is a 39-year high! While some say that the inflation will ease soon, we should all recognize it as a part of American life. Today we feel richer because of the greater money supply; but when prices catch up, the […]
Investing is not difficult to learn. Actually, I believe it involves unlearning behaviors. Unlearning to use emotions to make financial decisions. We, including myself, struggle with this regularly, both in our personal finances and investments. But it simply really is about the discipline to think objectively, choosing the factual side versus the emotional side, or […]
Friends, check out this video from Marcus and Millichap. Inflation, measured using the Consumer Price Index (CPI) is up 7.1% from last year. This is the greatest gain since 1982! According to Marcus and Millichap, the following are the top 3 drivers for inflation: 1️⃣ Supply Chain Problem The global supply chain problem is not […]
I am ecstatic to have had the chance to join Sam Wilson on the How to Scale Commercial Real Estate Podcast. On the show we discussed a few things every passive investor should know. Here are the cliff notes: 1️⃣ Delay instant gratification and put your extra money to work We all want things now. […]
Buying apartments is risky. Perhaps, slightly riskier than buying a house or a car. But similar to those purchases, good investors looks for hints and red flags. Aside from due diligence, which happens after an asset is under contract, there is one very simple thing that I do after I have underwritten, toured and/or begun […]
Today’s multifamily market is tough. The good assets are highly competitive amongst buyers and are bid up to exorbitant numbers that should not make sense from an investment standpoint. Because investors are chasing real assets, attempting dodge inflation and to get away from volatile stocks, they are now in the multifamily space, looking to get […]
Whether you are an apartment operator or a passive investor, it is wise to know the basic two goals of money management. Such an understanding should allow for more effective decision making and identification of risk. 1️⃣ Capital Preservation Capital Preservation simply refers to protection of capital. This identifies the goal of protecting principal and […]
Of all the metrics used in underwriting multifamily assets, it is arguable that Debt Service Coverage Ration (DSCR) is the most important. Why? Aside from lenders having a minimum required DSCR, it keeps the operator and his or her investors out of trouble by measuring the ability for the property’s income to cover its debt […]
We work very hard at our jobs. Some of us are engineers, project managers, accountants, corporate lawyers, IT specialists, the list goes on. My LinkedIn network includes thousands of professionals who fit these categories. What we have in common are the desires to grow in our careers, add value to the world and achieve financial […]
Hello, Friends. I am super thankful to have had another great opportunity to be interviewed on a podcast dedicated to help educate others on investing. This time, I joined Allen Lomax on the Real Estate Investing Abundance podcast. What a pleasure it was speaking with Allen and his audience on the what it looks like […]
When investing in real estate, regardless of single family or multi-family or actively or passive investing, it is important to know and account for all potential expenses. In doing so, recognizing any deferred maintenance is key. What is Deferred Maintenance? Deferred maintenance is a term used to describe past-due maintenance. These are routine services or […]
Welcome to 2022! To set the tone for a great and fruitful year, I want to share a mindset refresher. One that will allow us both to kickoff the year right with our financial goals and confidence. So here is the story. Recently in a board meeting I heard local a wise businessman who I […]