What would a balanced real estate portfolio look like?

As a real estate hedge fund manager for a decade now,I use an approach I developed years agoinvolving 5 parts to a balanced real estate portfolio: safety, solvency, liquidity, reserves and leadership.




Safety

1.Different asset types such as some multiple units and some single units

2.Different locations such as different cities or states with high demand and steady growth inpopulation as well as scarcity of potential new competition of new buildings

3.Different strategies such as buying to rehab and resell for immediate profits and some to buy andhold for long term

4.Diversified asset type of income such as from multiple units small tenants like apartment buildingsor high income from less units such as single tenant retail buildings with corporate guarantees




Solvency:

1.Low to no debt obligation (low LTV)

2.If debt, then well-structured in both the low amount owed and the terms over time (non-recourse)

3.High reliable Income against all expenses (high DSCR)

4.Great insurance covering business interruption and asset protection structure

Liquidity


1.Locations that make it easy to resell if needed (based on demand)

2.Credit lines against properties to access cash through borrowing at low rates in case of a cashcrunch

Reserves:

1.Having cash reserves equal to one-year payments on the side in case market drops in variouslocations simultaneously and resale gets delayed

2.Having a reserve of back up investors interested to be involved in transactions at reasonabletermsin case of a cash crunch




Leadership:

1.Having the right team members in place (intelligent, ethical, energetic and committed)

2.Providing the right incentives and rewards as well as feedback and penalties

3.Supervising the progress of each project and property and getting the proper accurate reportingas frequently as needed

4.Maintaining financial controls at all times



In my real estate fundsWelcome to MIGSIFandSecured Fixed Income Fundwe buy,fix and sell higherend residential properties in California, mainly the Bay area,where demand is higher. Wealsobuy andhold in Old San Juan, Puerto Rico where cash flow is more reliable due to cruise ship business and thehistoric zone.

Wishing you all the best in your investments.

Cherif MedawarCherif Medawar(407) 608-5448