In today’s episode, I’m going to go over the next asset class that I think will be the boom over the next few years.An asset class is the type of property you invest in, multifamily is an asset class, self storage, short term rentals, office space, strip malls…all of these are different asset classes and all have their pros and cons.Picking an asset class should be a mixture of your comfortability with that class, the opportunity, and the market cycle for that asset class.The next big asset class I think we’ll start to see is data centers.Data centers are projected to continue growing with the huge expansion of AI, in the last year alone demand shot up 61% for high end data centers and that’s just for the large companies, the Amazons, Facebooks, and Microsofts of the world.That doesn’t include emerging companies or anybody else that needs data centers for non AI related ventures.With supply chain issues data centers got enormously backed up, it was hard to get computer chips for cars let alone the extremely sophisticated computer chips and technology for running massive data centers.As AI and emerging technologies continue to grow at an exponential rate this demand will continue to push, and will likely continue outgrowing supply and the ability to create new, modern data centers.It’s an asset class we’re looking at and continuing to learn about and collect data on and it’s not something we’ve invested in yet, but I do think that could change as that industry becomes a bit more stable and predictable.

I am thinking of looking into ai stocks but am also considering not even touching equities because of where this economy may go....

Supply & DemandUnlike the stock market, which is largely driven by emotions in the short term, real estate prices are based on supply and demand.

Some C and some A. I

Many investors set themselves up for failure because they don't truly take the time to understand:1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.2) The Class of the PROPERTY they are buying - which is relative to the overall area.3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.7) That property Class rankings are often different than the Class ranking of the local market they live.8) Class A is relatively easy to manage, can even be DIY remote managed from another state.

This drop was driven by residents between the ages of 35 and 39 leaving the city for the surrounding suburbs, which is consistent with historic patterns of families leaving cities for more space and better schools, but remaining within the metro area.

Pretty easy to get approved for  a DSCR mortgage. find the property. find out market rents. the lender will lend up to 80% of the purchase price normally 30 years fixed. it is driven by how well the property covers itself and your credit score. 

One good thing I always like to see in realtors are driven, passionate, and available people.

I leave those folks to the larger national buys who are more interest rate driven or the few crowdfunders that are left.

You most likely will need a DSCR driven program)5-10: Conventential loan through a traditional mortgage company or bank.