My current asset stack.
NFA
1. Whole life permanent insurance
After funded these are accessible at 90-95% LTV and the interest is free. Grows compounded every year @ 6% tax free.
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NFA
1. Whole life permanent insurance
After funded these are accessible at 90-95% LTV and the interest is free. Grows compounded every year @ 6% tax free.
๐๐๐
2. Long term triple net commercial.
Medical facilities. Restaurants with good finances, track records etc.
Usually 20 year leases and I always require rent guarantees from the corporate and usually personal levels for first few years during risk curve.
Medical facilities. Restaurants with good finances, track records etc.
Usually 20 year leases and I always require rent guarantees from the corporate and usually personal levels for first few years during risk curve.
3. Development, primarily STR.
Weโve hacked STR. Developing condo neighborhoods and small multi STR purposed buildings.
Because of development structure they usually post $1-2m positive equity upon closing which covers risk during stabilization.
Weโve hacked STR. Developing condo neighborhoods and small multi STR purposed buildings.
Because of development structure they usually post $1-2m positive equity upon closing which covers risk during stabilization.
4. Business
The riskiest of the bunch.
Even if something makes it through my underwriting, the key here is Iโm acquiring to BUILD, not to hold.
Which means risk. As always, priced into the deal = no problem. But your risk is always focus not just money.
A few lessons:
The riskiest of the bunch.
Even if something makes it through my underwriting, the key here is Iโm acquiring to BUILD, not to hold.
Which means risk. As always, priced into the deal = no problem. But your risk is always focus not just money.
A few lessons:
๐ Notice my cascading priorities.
First I want preservation of capital. Second I want liquidity. Third I want tax / depreciation. Fourth I want cash flow.
You can make money from anywhere. Storing and preserving it is more trickery.
First I want preservation of capital. Second I want liquidity. Third I want tax / depreciation. Fourth I want cash flow.
You can make money from anywhere. Storing and preserving it is more trickery.
๐ Every risk is TIME BASED.
Thereโs usually 2-5 years of risk frontloaded into every deal. Thatโs what creates the gap for a return.
Your jog is to cover that 2-5 years as many ways as you can.
Thereโs usually 2-5 years of risk frontloaded into every deal. Thatโs what creates the gap for a return.
Your jog is to cover that 2-5 years as many ways as you can.
๐ You will lose sometimes
Never put so much in that you canโt handle losing. The best in the world lose OCCASIONALLY and never - NEVER - trust someone who claims theyโve never lost.
If theyโll lie about that theyโll lie about anything.
Never put so much in that you canโt handle losing. The best in the world lose OCCASIONALLY and never - NEVER - trust someone who claims theyโve never lost.
If theyโll lie about that theyโll lie about anything.
Nowโs a REALLY really good time to be locking up deals.
Just be smart and do the work to underwrite everything in proper order.
Just be smart and do the work to underwrite everything in proper order.
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