The Strike Zone Strategy: How I Avoid Deal Overwhelm as a LP
Monday, April 21
In 2016, I was reviewing a flashy new deal from an up-and-coming sponsor — 28% IRR, high-growth market, strong team. I had a good feeling. But something didn’t sit right. The deal assumed 6% annual rent growth. Exit cap was lower than purchase cap. And there was almost zero budget for capital res...
What is Internal Rate of Return (IRR)?
Monday, August 02
https://youtu.be/7WixwYh7Suk Personally, I don't really look at IRR because it is a highly manipulated metric. Showing an unrealistic refinance in year 2 instead of year 3-4 will likely turn a 13% IRR deal to 16-17%. Magic! The best way to explaining this is for you to download an IRR calculator...
HOW I USE IBC: BANKING FROM YOURSELF
Tuesday, July 20
“Whenever you find yourself on the side of the majority, it is time to pause and reflect” -Mark Twain Banking from yourself (with life insurance as the mechanism) allows cash flow investors to augment the investing they already are or will be doing. In 2016, I learned about this little-known fina...