May 12, 2022

Something I’m Reading

A few weeks ago I mentioned I was reading Bothy Tales which I bought while in Scotland. To expand on that, I also picked up a book called the Scottish Bothy Bible which details 100 different bothies in Scotland. If you don’t know, bothies are like hiking cabins out in the middle of nowhere in Scotland which are free to use by anyone. The book highlights what the bothies look like, where to find them, pictures, and what they have. I’ve been reading through that and it’s been a fun and interesting read.

Something I Teach

A lot of people have been asking me my thoughts on the market recently. Should you buy? Where’s the market headed? Am I buying? Here’s my thoughts:

I believe with the amount of money the Fed has printed recently, we are going to see inflation for a while. One thing that inflation affects is definitely rents and I believe that rents and values are going to be going up over the next few years. Inflation is at a 40-year high of 8.3%. It’s a bad time to hoard cash in the bank. Stocks are down and continuing to drop overnight. But real estate is a real asset that produces real cash flow. I believe real estate is the most secure way to continue to generate cash flow and profits while also maintaining security in this market.

Brian Murray (my friend, partner, and author of Multifamily Millionaire Volume 2) just wrote a detailed Facebook post about this. It’s linked here and worth the read! What are your thoughts? Let me know in the comments below.

Something I Photographed*

Seriously everyone, get yourself one of these Resort Robes from Pottery Barn. #NextLevel

P.S. This isn’t an ad - I just love them 😂

Something I’m Excited About*

The Sunbelt Diversified Portfolio is live and already over 60% subscribed! This portfolio has properties across some of my favorite MSAs - Austin TX, Daytona FL, and Atlanta, GA and will produce attractive cash flow from day one. Myself and our other GPs have already committed $1.5M+ of our personal funds to invest alongside the LPs. If you’re looking to hedge against inflation, build wealth, and get mailbox money while doing it, click the link here to learn more and invest with us!

Something I Can Answer

Every week, I answer one question asked by a BTB subscriber. Have a question you want me to answer? Reply to this text with your question!

Question: “At what point in your investing journey would you consider syndications instead of buying single family?” -Robert L

Syndication is ideal for people who want a good return but don’t have the time or desire to get their hands dirty.

A story I often tell is several years ago, I bought a property at auction for super cheap. I managed contractors for 6 months to get it fixed up. I rented it out for a couple years and then sold it for significantly more than I bought it for. But when I averaged out the total return per year of that property, it was only a 15% return per year. That was the day that I asked myself “What am I doing?”. I thought i was making good money but I put 100 hours of hours of work into the property just to make the same return that i’d get by investing in someone’s syndication.

Of course, at the time, I couldn’t invest in a syndication because I wasn’t an accredited investor. So if you’re accredited and don’t want to put in the effort to get ridiculous return with single family rentals then syndications would be a good route to explore to diversify or have a more passive approach. Single family rentals is still a GREAT way to build long term wealth but often does require more upfront work, off market deals, creative structuring, and more time involved to see returns beyond that of a strong syndication.

Your Friend,

P.S. Comment below and let me know your thoughts on this week’s BTB! Please be friendly :)

*This is not an offer, or a solicitation of an offer, to buy or sell securities. This is not tax or financial advice. Past performance is not an indication of future results. Investing involves risk and may result in partial or total loss. Prospective investors should consider carefully investment objectives, risks, charges and expenses, and should consult with a tax or legal adviser before making any investment decision. For additional information, visit www.ODCfund.com.