In a world full of low interest rates, economic uncertainty and broken promises, Main Street investors have limited options for generating yield on investments. Diversification is at the root of many of my most important conversations today and I specifically want to talk with you about investing outside mainstream markets – namely outside the “buy and hope” stock market. I’ll demonstrate that a well-diversified portfolio will often hold alternative structured investments such as real estate. And no to be clear I’m not talking about flipping a house which is more of like a risky job than an investment. I aim to expose entrepreneurs and affluent investors who are disappointed with the subpar yields commonly offered by traditional investments to superior alternative investments into commercial real estate deals.
In his book Unconventional Success, David Swenson, the Yale Endowment Chief Investment Officer, advises individual investors to follow the “20 rule”, allocating 20% of their portfolio to real estate among five other asset classes (real estate itself has been at one point 22% of the portfolio). This investment model according to his book has outperformed a stock and bond only portfolio by about 90%. And to be clear those real estate assets were not fixing and flipping houses. Adding to that modern portfolio theory recommends investing across multiple asset classes with up to 20% of a well-diversified portfolio invested in HARD real estate assets (not for example REIT stocks).
I hope to spark a conversation and help you discover commercial real estate offers benefits to investors that no other investment can. It CAN be the vehicle that throws off cash flow to invest elsewhere and provide significant windfalls at some point in the future.
Why listen to me? As my track record demonstrates, I’ve consistently outperformed traditional investment counterparts by delivering strong risk adjusted returns while limiting downside risk in structured real estate investments. As manager of millions of dollars of other people’s money invested into commercial real estate deals over a few real estate cycles spanning over 20 years. I’ve delivered a handsome return 100% of the time - averaging a 28.88% appreciation (details available upon request) and am proud to report I have never jeopardized nor lost $1 of investors capital. My investors essentially get paid a dividend to wait for future appreciation on real estate investments. Add to that I’m able to buy commercial real estate at 60 cents on the dollars, it’s a formula that has turned out very well as demonstrated by the performance of investments made. See Case Studies.
To do this time and time again, I seek to make investments in investment and commercial real estate properties with strong fundamentals that can be bought below intrinsic value that are producing cash Day 1. I then infuse the human and financial capital necessary to maximize the income the real estate produces which compounds the value of the real estate whereby creating substantial equity. Then, when there is nothing but risk on the horizon and market forces indicate a strong seller’s market, we take profit and unlock the gains and if desired rinse and repeat. I call this my ALGO (algorithm) and it’s served me well in over 30 investments made.
Commercial real estate is a relatively simple investment to understand once you take the time to learn about its characteristics. Despite its importance, many investors find in difficult to allocate 20% of their capital to commercial real estate investments and don’t have the time to learn everything it takes to be successful in identifying, structuring and closing deals. They don’t have the bandwidth to master another investment option and don’t want to get hurt. I provide an option for investors to participate in the BENEFITS of direct commercial real estate ownership without all of the hands-on day to day management.
So, the question is how can investors access lucrative commercial real estate deals? I would invite you to schedule a call with me and I will explain to you how that can happen given your situation.