Commercial Real Estate Investing From A-Z A Review of The Investor Summit at Sea & Lessons Learned
Today we are reviewing the Investors Summit at Sea. I’ll also share a few lessons learned on this cruise that are simply invaluable.
You can read this full episode here: https://montecarlorei.com/review-of-the-investor-summit-at-sea-and-lessons-learned/
Lessons learned specifically for real estate investing:
– Have a team, management is key, get very good managers.
– When things go wrong, it’s almost always because you had the wrong people in the wrong chairs.
– Don’t try to do things that are too small because you cannot afford to get the right people in the right chairs, so go big in order to be able to afford the right people.
– Really evaluate if you want to get into a tertiary market.
– Cut your losses early.
– A market has thousands of submarkets. Just like within your city, there are very good areas and within that very good area, or that upcoming area.
– Make sure to change your investment strategy if it is reaching a peak.
– Don’t say I can’t do it. Say, how can I do it? (you can do a joint venture deal, you can get a few partners, etc).
– Always be building and growing your team.
– The best time to get started is yesterday.
– Get mentors and ask them questions that you already think you know the answer to.
– FHA HUD loans can take a while to get approved, they have heavier fees, but when it’s done, you get a 40 year loan, fixed, non-recourse debt. This is very good for construction loans and refinance loans.
– Don’t wish for no problems, wish that you get better at solving them (I love it!).
– Statements, close the mind, questions open it. (Double love it!)
How you can prepare for what is coming in the economy:
– You should have five uncorrelated assets. For example: real estate, gold, stocks, and a couple of other things.
– Lock your rates for 10 to 12 years, and get 30 year loans. You should have at least six to 12 months worth of operating expenses as a backup.
– If you are a syndicator, you should always have cash calls in your paperwork.
– Underwrite your deals based on historical rent and historical cap rates (rates similar to when we were in a recession back in 2008).
What have I learned about the economy and government:
Here I encourage you to do your own research to learn more about these topics:
– The federal government hasn’t been audited. Has anyone thought about that before?
– Pension funds are America’s greatest retirement crisis in history. State pension funds are not governed.
– Fidelity Investments has $7 trillion under management, $2 trillion of that is in 401k’s, and their fees are $40 billion per year.
– Inflation is a form of taxation. The Fed is committed to increase inflation by 2% every year.
– The money we deposit in the bank is not ours anymore. The bank now owes us that money, this was passed very quietly under the Obama administration.
– The number one asset in a government bank is student debt. It’s the only thing that you cannot remove in a bankruptcy.
– If you want to revoke your citizenship here in the US, you owe the government three times your income. and if you owe $50,000 in taxes or more, they may revoke your passport.
– At a $100,000 income, if you pay 40% taxes, and if you put your remaining money ($60,000) at a 12% return, it will take you 5.5 years to get that money back to $100,000!
The next Summit will be from June 11th -20th, 2020.
Sign up for the Summit at Sea here: https://realestateguysradio.com/summit/
Make sure to mention Steffany Boldrini to get $100 credit in the ship, which can be very useful for internet usage.