All Forum Posts by: Eric Eastman

Just finished listening to the 1.22.17 Real Estate Guys Radio podcast with Robert Kiyosaki. On it he said that basically we are currently in an economic situation akin to 1928 and 1929 is approaching rapidly. 

His argument, which isn't a novel one, is that our economic system built off of fake fiat money is tapped out. I definitely see the argument in that. He and the hosts are concerned that a huge stock market correction is coming and the dollar is toast. They suggest that this will lead to loads of opportunity to those that know how to manage it. 

Ok, great but what does that actually mean? Let's say he's right and doom and gloom is right around the corner what is a possible solution? Sell all your stocks and Go to all cash that will be worthless anyways? Take on more debt to acquire real assets(property) and ride an inflationary wave to rapidly pay down everything? But wouldn't a crushing market correction drag all your values down making a purchase now harmful?

People have been making market bust predictions since the dow got back over 10,000 circa 2011, so I'm not taking this as gospel. Similar predictions have been made about real estate. But there is a good argument that things are getting close to the top with lower cap rates, higher stock valuations, likely interest rate hikes, global economic changes and attitudes towards globalization, etc. 

This is a broader topic that just multi-family but I figured this would be the place to ask this macro question. Lots of great minds here that I'd love to hear from. Thanks guys. 

-please excuse any typos or odd formatting. I wrote this on train using my iPhone. 

Thanks for the reply @Account Closed. 

I totally agree that one transaction doesn't dictate whether a person knows how to succeed in investing, because so much could turn a winning investment into a loser and be out of the control of the investor. Not only that, but as you noted, the lessons learned could be worth more than a winning investment sometimes. It really is about whether their process is sound and if it is that person will succeed in the long term.

I also agree with your assessment and something I heard on Podcast 152 from, I believe Brian Burke, that there might be too many inexperienced investors in the multi-family market right now. At some point if the economy takes a hit some might be in some trouble. This is where the experienced guys who know how to keep their heads above water can make moves that will set them up for a great deal of long term success. That's the type of person I want to work with, if they would work with me of course.

Thanks @Anthony Chara and @Nick C. for the advice. My goal would be to try and find someone who has had success and would know what to do if a deal went south. Right now, given the general improvement of Real Estate in the last 5 years, you could easily have someone with years of experience, a track record of success, but zero clue how to handle a down turn in the economy and no exit plan if things turn south. That's the concern I have with investing with anyone and would be the focus of my vetting process.

Thank you as well @Leslie Pappas. Unfortunately, I'm not an accredited investor. My hope is to continue to grow my wealth so I can get into that class. I know that would foreclose a lot of private investment opportunities with large entities, but perhaps I can work with smaller operators, following all the rules of course.

I kind of have the opposite problem of a lot of people trying to get started. I'm lucky in that I have a a very steady and well paying job and a cash to invest. But with a family, full-time job and helping my wife start her own business I don't have the other required resource for investing - time. Maybe in a year or two I can start on my own, but in the meantime I want to learn the business now while time is tough to come by and use my money wisely.

The question is how does someone who is looking to finance, invest with or partner up with a real estate investor vet that person? 

The obvious answer is networking, but what can you do beyond that and looking at financials involved in their deals? Some recent podcasts have featured experienced real estate business people who not only do well for their investors, but understand the obligation they have to those investors. The last thing they will do is burn an investor even if times get tough.

How can you find people like that and not someone who is over their head? Or someone who will hang an investor out to dry when times get tough?

The other side of this is how would an investor be attractive to someone who is using syndication to close on big deals? What if I'm not an accredited investor? I know there are exceptions such a friends and family, but is it realistic to get into a syndication that way? 

Thanks for your time on this.

I kind of have the opposite problem of a lot of people trying to get started. I'm lucky in that I have a a very steady and well paying job and a cash to invest. But with a family, full-time job and helping my wife start her own business I don't have the other required resource for investing - time. Maybe in a year or two I can start on my own, but in the meantime I want to learn the business now while time is tough to come by and use my money wisely.

The question is how does someone who is looking to finance, invest with or partner up with a real estate investor vet that person? 

The obvious answer is networking, but what can you do beyond that and looking at financials involved in their deals? Some recent podcasts have featured experienced real estate business people who not only do well for their investors, but understand the obligation they have to those investors. The last thing they will do is burn an investor even if times get tough.

How can you find people like that and not someone who is over their head? Or someone who will hang an investor out to dry when times get tough? 

Thanks for your time on this.