Each step compounds toward your long-term goal.

That operational lift is my leverage — and it compounds year after year without bank risk   Alignment of InterestsWithout bank covenants, GP fees, or preferred GP distributions, every dollar of NOI is split between GP and LPs after the pref.

When looking at debt pay down, do you consider whether the interest is simple or daily compounding?

RE like most other investments almost always makes wealth on compounding (directly or indirectly).

Cash flow can happen early on in NJ but it can compound big time each year if done right.  

Take care of your properties by eliminating premises liability exposures, exceed the implied warranty of habitability standards;  be responsive and reasonable with tenants;  Screen and work with- licensed and appropriately insured contractors, property managers, brokers;  Use contract management to shift risks and defense; avoid your own conduct and conduct of others that arises to negligence. 

Doing good deals and allowing your assets to grow and compound over years is what builds wealth. 

We calculate the Compound Annual Growth Rate (CAGR = (Ending Median Rent / Beginning Median Rent) ^ (1/years) - 1) between 2015 and today, for properties that conform to our target property profile.

That is not a defense, but people learn better through experience and that is being taken advantage of.  

I would think if we see any defense played, it's sell NVIDIA or another mega cap and buy gold not necessarily ALGN(#300 in the S&P) or any stock in the back half of the S&P.