All Forum Posts by: Andrew Hogan

There's a lot of uncertainty floating through the air recently.

When you speak to hundreds of investors each month you begin to notice trends.

With the recent down-turn in the stock market, speaking with investors recently has given me deja vu with similar conversations in 2020.

I'm seeing the most wealthy investors allocate much more heavily into tangible, cash flowing, inflation-hedged illiquid assets like our multifamily communities.

At the same time I'm seeing many smaller "retail" investors be more skittish. They want to wait for the stock market to go back up before investing away from the equities. 

Why do you think that is?

Doesn't it make more sense to cut losses and reallocate before stocks take a worse hit?

Never too late @Steven Rosenfeld if you have set goals that you want to accomplish. If you don't want to work for someone else then try investing as hands off as possible so that you don't end up working for your residents/clients.

Best of luck!

There are a lot of videos on youtube and websites to help. It's going to be tough to have a buyer that prefers your 203k loan over the rest of the offers on the house.

In the Midwest we used to avoid replacing countertops, cabinets, and flooring but are able to achieve a fantastic ROI doing just that this year.

It just comes down to what you can raise rents by and the team you have to upgrade the units.

great summary Jorge, there are many people who would be decent at pursing real estate actively but they would much rather stick to what they're already successful at and partner with successful operators that have a proven track record. 

Our commercial loans for multifamily are currently still in the 3's despite the recent rate hikes. 

We built healthy cushion into the modeling as we didn't expect rates to stay at all-time lows forever... they'll also not stay high forever either.

great points by @Jim Pfeifer and @Evan Polaski. They are talking about legal exposure from the personal level up to a syndication -- not the syndication getting sued and getting passed down to investors. Limited Partner also means limited liability. 

It's not uncommon for there to be a 3-4 month window from the time you commit until the capital is officially deployed. The goal is to try and reduce that as much as possible. 

Say you invest 50k that's earning a 7% preferred return. It should be earning ~$9.59/day so 90 days means about $863 that it didn't earn from pref.
If the targeted equity multiple is 2.5X (125k) then that's only 0.7% of the overall return. 

Some Funds haven't found assets yet while others may have identified them already.

You could find some on loopnet and calling them out of the blue @Jeffrey Scully

Hi @Benjamin Sulka, This seems like this is a recurring question. Try searching for past forums with the same topic. 

The debt is relatively cheap so if it's 4%, that's all you have to beat with your investments for it to make sense (not to mention inflation). Right now the government has paused payments and student debt is 0% so I would never pay off a 0% loan first.

Kiyosaki once justified buying a luxury car by buying a self storage facility that had sufficient cash flow to pay off the monthly car payments. He could have easily paid it off in cash but instead, he traded his cash for tangible assets that produced more cash.

Good luck!