All Forum Posts by: Ivan Barratt

LOL @Ben Leybovich I love your take. We're "dollar cost averaging" into more apartments as our portfolio is doing quite well here in the midwest.  Some smaller investors are skiddish but a lot of our higher net worth families are allocating more into workforce mfam.

@Jonathan Twombly I hope you were putting in the bumpers previously as well. lol. The "strong hands" will be taking the "weak hands" that weren't previously underwriting cushion.

In every market there's opportunity. Discipline is key.

@Account Closed I would tell you to focus 100% on starting and growing your biz first. Down the road you can use the cash flow from the biz to buy your real estate.  Rich Dad Poor Dad "The Cash Flow Quadrant" breaks down this formula quite well.  As an example Robert Kiyosaki did NOT get wealthy via real estate. He got wealthy via growing an education company. Then, he used the funds from the biz to buy income producing assets.  Look behind the curtains and most "real wealth" has been built this way.  Focus on the B quadrant first. :)

@Arn Cenedella cheers. I haven't paid federal in almost 8 years thanks to legally playing the passive loss game and having full time re professional designation. You're going to LOVE the generally bigger losses on syndication. Big deals have big cost seg benefits that nearly doubled after 2017 tax act. enjoy!

@Andrey Y. glad to hear you are getting a CPA my friend! lol

@Randy Bloch if/when rates go up due to inflation (I hope they do at some point); another thing will go up as well. Rents! Multifamily is best in inflation b/c rents can reset every 12 months vs long term leases in other asset classes like office or retail. The key will be to manage debt maturity. If you have a long horizon left on your debt you should be able to offset cap rate expansion with higher cash flow. Managing maturity risk and not being forced to sell at the "wrong time" in the cycle is the key to playing this game over the long term. :)

Private debt (no equity) would greatly reduce YOUR cost of capital and increase your upside in a small deal.

Seeing a couple trends right now. 

Realtors who are also accredited investors investing in passive platforms so they can own income property without management AND reap the huge tax advantages allowed for "full time real estate professional." 

Small portfolio landlords selling small deals to trade up to bigger syndication deals primarily to get all the benefits of real estate without active management. If timed well these landlords can also get the "effect" of a 1031 (without performing one) by using losses on the syndication to offset gains on sales of small properties.

Great points @Serge S. and you may be correct. Certainly thankful I'm hedged. We only bought 3 assets in 18 and 2 assets in 19 due to irrational exuberance of other buyers willing to take a far lower return. The next year will be interesting at least...

Right now we are seeing the best leasing activity in terms of 12 most of trailing data. Lot's of people who were stretched on rent or are now putting off purchasing are looking to rent. It's good to be at the high end of value prop here in the midwest. Perhaps that's why I'm so bullish...

Although, we haven't seen a parabolic "melt up" in stocks or real estate which leads me to believe that QEinfinity may cause that.

Who knows for sure right? That's why a smart investor always hedges! ;)

@Ian Stuart agreed on UBI. It's inevitable.

If prices don't dip one bit they'll still be considered cheap vs prices 2 or 3 years from now and on down the road.

@Bill F. love the cab drive/paper boy analogy! Well played and it may be sign of a bubble.  The seminar/boot-camps definitely have more attendance from people looking for the easy money. I would define mania more like what I saw in the bitcoin bubble when it was the hot topic every day on cnbc.

I think you and I are inside another bubble of sorts. In our circles it's talked about a lot b/c we're deep in the real estate game. :)  The rest of the world is largely unaware but again; I could be wrong. That's why I hedge my bets with 12-15 year locked debt.

Wishful thinking maybe but owner surveys are coming back strong for April. You'll say May might be worse. I think you're wrong but we'll see.

Some private equity "pirates" and institutional wannabes may have left the sandbox for the next hot thing but the industry is full of institutional owners that own tens of thousands of units and have done so through several cycles. My partner and I own 3,000 apartments and we're barely minnows in the ocean of multifamily. :)