Things that attract my attention:

• location independent business models

• tax optimisation strategies to keep majority of net profit

• very high profit margins (>50% or even towards 90%)

• minimal management effort and repeatable process
Additional notes:

• if I can’t have freedom, travel to foreign countries & enjoy time off — not doing it

• if I’ll be handing 30-50% of my profit to a governments which recklessly spends the money — not doing it

• if I have to work the classic 30+ hour week — not doing it
Early on in my journey I came to a realisation:

It wasn’t success, wealth or peer/industry recognition I was after.

It was freedom.

I was never interested in being only rich but permanently stuck somewhere, doing work I wouldn’t enjoy & not having the control of my time.
My process is just an example of what was and still is important to me.

You should consider a similar process, writing down what is important to you (other than money).

If you’re only chasing 0s, I’m very certain you’ll end up with many regrets down the road.

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More from @TihoBrkan

22 Nov
One of the ways to remove the risk from the speculative activity of real estate & betting on CAP rate compression,

is to focus only on great deals truly priced below market or replacement cost, usually found from distressed sellers & to reduce/remove leverage from the equation.
Also worth mentioning is to focus on the value add as a key driver of appreciation, instead of hoping for market appreciation.

The forced appreciation component that our family has focused on is construction, which is an edge to increase profits without speculation.
Benjamin Graham said:

"A speculator gambles that a stock will go up in price because somebody else will pay even more for it."

The same is true in real estate or other assets.

Instead of hoping for a higher exit price, buy at a lower entry price and exit at the market.
Read 4 tweets
21 Nov
Coronavirus drives global debt to a new record high…
The IIF said global debt would break new records in the coming months to reach $277 trillion by the end of the year.
Among advanced nations, debt surged above 432% of GDP in the third quarter — a 50 percentage points increase from 2019.
Read 8 tweets
14 Nov
This is great question, and to enter into a discussion such as this one, we have to compare the landscape for US investors over foreigner investors.

Thread (answers from my perspective).
If two people are discussing strategies, the conversation becomes more effective when each party understands where the other is coming from.

Example, I put effort into educating myself about the US real estate, but a lot of Americans don’t have a clue about foreign markets.
Therefore, the first point worth discussing is that outside of the US, there is no such thing as government agency debt.

Essentially, we don’t have government bodies writing real estate cheques & guaranteeing them, which makes US debt attractive in some cases.
Read 19 tweets
7 Nov
Great nuggets of wisdom you hear on private telephone conversations:

"The elite developers I work with, and that we finance through senior & mezz debt — the IRR on their own money should be close to or around 100%. And some of these guys are achieving that for years."
Some people mention that 20% mezzanine debt finance is ridiculously high, but what they don't understand about construction finance is the way elite developers have their capital working in high-risk, early phases of the project.

Once the project gets development approvals...
...and it becomes "shovel ready" (construction term used to indicate everything is ready to go apart from finance), it is the blend of senior and mezzanine debt that comes in financing the project.

Elite developers will even go a step further and do an "equity withdrawal"...
Read 5 tweets
29 Oct
1/ In 1960, both Jamacia and Singapore separated from the great British Empire.

Both island nations, both started with similar GDP, using common law & English as a primary language of business.
2/ At the time, Singapore was a mosquito-ridden swamp, complete under-developed, and where the heroin trade was the most dynamic (black) part of the economy.
3/ However, due to incredible foresight and vision are by one of the greatest leaders to ever live in the 20th century — Lee Kuan Yew — Singapore became one of the greatest, if not the greatest country in the world today.
Read 6 tweets
28 Oct
This one of the more important concepts to understand for asset allocators.

How to prepares one's mindset & psychology if years & years of poor returns are ahead for most asset classes?
Aggregated 15 developed markets, using a traditional portfolio of stocks & bonds, show the highest valuations in two and half centuries.
On the real estate side, most developed economies residential real estate CAP rates have hit rock bottom — indicating very little, if any value, for the long term investors.
Read 4 tweets

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