We Study Billionaires - The Investor’s Podcast Network TIP448: A Way to Hedge Inflation? w/ Dan Handford
May 15, 2022
Dan Handford, CEO of PassiveInvesting.com, shares his extensive insights on commercial real estate investment strategies. He discusses how to thrive in competitive markets using conservative underwriting practices. Listeners will discover tips on reducing tax bills through real estate, the complexities of preferred versus common equity, and various financing methods for large firms. Handford also emphasizes the importance of strategic asset allocation and the dynamics of debt markets to hedge against inflation.
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Conservative Underwriting
- Underwrite conservatively in competitive real estate markets.
- Use conservative rental and occupancy rates, and maintain ample reserves.
Reserves Lesson
- Dan Hanford's firm learned the importance of reserves early on.
- They once had to loan a property money due to renovation cost overruns.
Reserve Levels
- Maintain ample operating reserves, ideally enough for 18-24 months of expenses.
- This helps withstand economic downturns and avoid capital calls.
