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#RealEstate

1/ Commercial real estate is a business, not just another asset class.

The best businesses have grade A customers, reoccurring predictable & contractually protected revenue, low fixed expense costs and the ability to obtain the cheapest financing with best terms.
2/ The real estate business makes the a net profit after expenses (net operating income or NOI).

On top of the profit, the underlying asset (land & building) also appreciates in value over time, beating inflation.

Last but not least, if you’ve picked correctly...
3/ ...in the most desired locations (central business district, downtown, riverfront, ocean front, hill top with views)...

The asset will experince incredibly low drawdowns & amazing appreciation as demand constantly outstrips supply.

Some could even be recession proof.
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Tiho Brkan
@TihoBrkan
1/ The brief story of real estate funds vs real estate syndications.

Syndication is a capital raise targeting a single RE deal.

Stragery with T&Cs is worked out at the start.

Once an exit is reached, we all go our separate ways or work on another syndication.
2/ This one is quite simple really.

If you get a chance to work with syndicators who have a fantastic track record in the industry, you are probably going to do very well.

They have to have skin in the game, therefore interest will be aligned.
3/ When they do well for themselves, they'll automatically do well for you.

Solid syndicators aren't in the business of losing money & their track record clearly shows.

However, if you partner up with an "inexperienced" syndicator, results might disappoint. Common sense right?
Read 7 tweets
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Tiho Brkan
@TihoBrkan
1) Due to illiquid & inefficiency premium, historically private assets have outperformed public ones.

That doesn't mean you should rush out today, pile money into a fund & join the capital raising bubble. Apply common sense!

Here is a thread on what we did last 4 years & why.
2) The global stock market is up 59% including dividends over the last 4 years, as measured by $ACWI.

That's a 12% CAGR.

We've managed to outperform using RE mezzanine debt deals with a 16%+ CAGR over the same period.

We even paid a 20% withholding tax — twice in 4 years!
3) Therefore, that is not even an apples to apples comparison.

The stock market CAGR is a gross return while the mezzanine debt investments I'm discussing are a net, after-tax, return.

Side by side the gross returns were 12% vs 18.7% CAGR. Never mind — let's go with it anyway.
Read 19 tweets
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Tiho Brkan
@TihoBrkan
1) Real estate is an incredibly flexible asset.

One of the greatest "tricks" you can do in a value add strategy is to refinance your correctly rehabbed property & pull out 100% of your original capital.

Thus, you can recycle that same capital into another property immediately.
2) Repeating this strategy over & over again has INCREDIBLE compounding effects on your money.

Your original capital doesn't just earn an 8% or 12% return once — it might do it several times.

Depending on how successful you are at finding great deals or which part of the...
3) ...cycle we are in, you might be able to recycle the original capital multiple times in one year (undoubtedly, this was a lot easier in 2012/13 then it is today).

The compounding consequences on your capital invested become enormously positive as you achieve rates...
Read 15 tweets

Related threads

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Chris Powers
@fortworthchris
A few #realestate predictions for the coming decade....

1.Hotel-like service & hospitality will continue to creep its way into every asset class. Amenities that offer convenience to tenants/customers will win out over amenities focused on nicer finish-outs.
2.Blockchain-based property management software will be used to record day by day property records (i.e. when a tenant puts in a maintenance request, how the property manager handled the request, when the work was completed, the receipt, etc.), creating a digital asset that will
accompany the physical asset. Owners that create digital assets (more transparency) to accompany their physical assets will not only become smarter but will have more valuable properties.
Read 14 tweets
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estate_consultant
@Michael52149621
*THE WAGES OF THE IGNORANT*

They increased VAT from 5% to 7.2 % e no reach , now they come put charges on your money saved in the banks such as - 2% charges on Savings, 3% Charges on withdrawal and other existing charges like Monthly charges, SMS, transfer charges, ATM
maintenance, etc wey no reach again, Watch out for the next policy while you do that my brother and sister the ignorant will always pay to the wise unless he becomes informed.
You may not know that these financial institutions are in accord to drain you.

It's time to take
yourself and generation out of this bondage and the time is now.

*How can I do that?*
*What should I do ?*
*Are those one of your questions?*

_Well let me tell you for *FREE* , start by investing in assets that has tax advantages so you don't continue to work while the
Read 6 tweets
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Funter
@Funter21510910
What explains Canadian Pension Funds' risky bets in India?

Pension Funds are custodians of retrial money of public and hence are expected to be conservative. Canadian Pension Funds, however, are different. Thread 1/11
These Pension Funds are not shy of picking up assets in the troubled sectors. Real Estate and Infrastructure assets are key bets of these funds in India. They have invested in roads, airports, solar energy, commercial real-estate and other perceptibly riskier assets. 2/11
As per Financial Post, the Canadian Pension Funds '...rank as five of the top 30 global real estate investors, seven of the world’s biggest international infrastructure investors, and were at the table during six of the top 100 leveraged buyouts in corporate history. ' 3/11
Read 17 tweets
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Lerato & Adams
@leratoandadams
Are you ready to scale up your real estate business for Good?

1. Start small - 1 unit of a not too expensive property option and put it to work

2. Reinvest the yield/profit to a bigger opportunity. Bigger could mean a different environment or yield opportunity

#RealEstate
3. Switch into multi unit opportunities- could be residential or retail. Controlling more units means more profits with literally the same effort.

4. Upgrade into owning your own building or property fully. This is easier and more viable with mixed use commercial units.
Because you can now have your offices within the building at almost no cost to you.

If you choose to do same with residential units, it might be worthwhile to also live in one of the units

#realestateinvesting
#Property
#investing
#rental
#commercialrealestate
#business
Read 3 tweets
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Dr. Tayo Oyedeji
@tayooye
3 myths about real estate investment.
1. Real estate investments always appreciate - NOT TRUE. Remember 2008.
2. Your home is an investment - NOT TRUE. Renting is sometimes more financially prudent.
3. Real estate is ALWAYS the most profitable investment vehicle. NOT TRUE.
Myth 1.
A. If you bought a $1m house in Detroit in 1970, it's probably worth $20k today (location dynamics).

B. Property prices in London have receded by almost 10% in 2019 (Brexit).

C. Global property lost 18% to 40% in 2008.

Real estate appreciation is not guaranteed.
Myth 2.
1. Home ownership is expensive.
2. Home ownership gives psychological comfort but is often less prudent than renting.
3. Read this article
forbes.com/sites/camiloma…
Read 6 tweets
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𝕄𝕒𝕥𝕥𝕙𝕖𝕨 𝔸𝕣𝕪
@MatthewAryCEO
#RealEstate Marketing success thread:
I own a successful digital marketing agency asgarddm.com. Some of our clients are real estate brokers and agents. When these clients use our service they're always blown away by the difference.
There are two reasons for this.
1/
First and most importantly it's because we are the best. No one comes close. We recognize that our client's success is our success. Secondly brokerages on average are severely behind other industries when it comes to marketing.
2/
I don't mean behind on a fad. I mean behind on how marketing works from here on out. They tell me they're tired of the grind that goes into canvassing neighborhoods on foot and cold calling 10+ hours/week #RealtorLife. How am I changing that?
3/
Read 5 tweets

Trending hashtags

#capital #Pension #Property #GAZETTE #commercialrealestate #rental #Banks #Government #realestate #Metoo #RealEstate #RealtorLife #CBNPolicy #Land #FrankSpeech #investing #investment #Acquisition #InfraredPhotography #ThesePeopleAreStupid #CPPIB #TeamPatriot #realestateinvesting #Canada #AnOpenSecret

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