What does a "base hit" look like?

[Eric Dekker]

Hey all, I have heard David Greene talk many times on the podcast about taking "base hits" to keep momentum instead of trying to hit a grand slam every-time. What does a "base hit" look like for you?

[Marcus Auerbach]

Probably 80% of the deals I have bought over the last decade were marginal, at least I thought so at the time. A few years later I look like a genius. Even with properties we bought last year. I had very few home run deals.

Time is the magic ingredient for REI. And inflation is your friend. Most of the houses we rent are worth today 10x of that they were sold for when they were new built in the 1960s. Same for rents.

I do believe in long term hold. Some people like to trade properties and spend a lot of time and energy with 1031s - the only one who profits of that is your 1031 custodian and your agent. If you want to keep your return on equity high, you can refi and get the leverage back up to 75% and buy more property with the free capital. This way your houses are having babies.

Done is better than perfect. And another property bought is better than looking for a homerun.