All Forum Posts by: Andrew Hogan

Great interview. Too much negativity looming around the internet right now. I love me some good vibes.

@Karson Wilson

Nothing in investing is 100% guaranteed but some investments can give you higher confidence than others. Some passive investments offer 'preferred returns' others you've got to go out and create the value yourself. Just depends on how much capital you have to start investing with. If you have limited dough, wholesaling and househacking a small multifamily could be a good way to start, passive investments could be investing in a syndication (Regulation A if you're not accredited) but right now many sponsors are not paying their preferred return to investors until covid-19 is gone.

It's hard to not make 4% if you selectively chose some stocks/equities right now. 

When I began investing, I personally paid off half of my student debt first just to sleep better, but that's just me.

Had Grant not invented bad news, this thread wouldn't exist which was the whole point... to break through the noise and get people talking even if it's negative... having said that, I personally wouldn't want to do anything that may hurt my network's trust in me.

What's the interest rate on the debt? 4.ish% ?
That's all you have to beat my friend.

That's good news. Thanks @Michael Plaks!

Gotta love passive losses! 🤑

@Brian Garrett Agreed! Makes me wonder how much RISK is associated with those high projected terms.. or how small those deals are. Somebody could invest $100 into the stock market today, get lucky and gain 30% in one day. 

But when we're talking solid real estate investments, it's another game.

@John Stanley

If you're looking to take a passive approach alongside a sponsor, reviewing their fees is an important step in your DD. However, I believe by far the most important step is to underwrite the sponsor themself, their team and its ability to execute, and their track record.

After narrowing down a few sponsors that you're reasonably confident won't lose your money, you can begin to see who will grow your money at a faster rate than the others which is where fees come in. 

But never forget the first and most important rule as an investor according to Warren Buffett: NEVER lose money.

Happy hunting :) 

Also agree with @Greg Dickerson. Currently, in talking with clients each day I'm seeing the most severe and immediate effects to retail and hotels. But skilled nursing/assisted living, office, SFH, will soon follow the downward trend.

Large multifamily - primarily upper workforce housing in good locations if financed and operated right, is what will make it through to the other side with minimal devaluation no doubt.

Your assumption is correct. Though GC's investments aren't a REIT or other form of 'paper'. It's a syndication structure and stopping distributions is one of many preventative strategies to keep assets away from the red zone. Some operators will 'catch up' the preferred return once everything is normalized to keep their investors "current".

Welcome to the fun @Erwin Perez