Wow!! What a week last week was…

Going into the Best Ever Conference, my analysis of the investment sentiment and the market was that interest rates were going to be higher for longer and cause more pain in the form of job losses, asset devaluations, and a deeper recession. This was confirmed and as such by Fed Chairman Jerome Powell, but the week ended with SVB and another bank closing and the FDIC and Fed coming to the rescue them over the weekend. This may or may not change the Fed’s outlook on interest rate policy and going in I was convinced of my thesis however, now I’m searching again for further clarity as the outlook has been changed with the bank failures.

Regardless, It was the BEST EVER WEEK of Multi-Family and Alternative Investing Networking, Industry News, Trends, and Education!!

Here is my synopsis and learnings from last week (Thanks to my friend Enrique Huerta for helping me put this together)

Multi-family is no doubt one of the dominant alternative investment strategies that I have seen and been involved in over the years however, there are many other alternative investment strategies that we may need to explore from a diversification perspective…such as Self Storage, NNN Leases, Industrial Building Leases, RV & Mobile Home Parks, Car Washes, ATM Routes, Laundromats, Timberland, and Solar Energy. They may offer better returns, better Cash on Cash, or may have additional attributes which some investors may like.

Because there are so many alternatives, it makes a lot of sense to pick 1-2 and go super deep. An inch wide and a mile deep rather than a mile wide and an inch deep. In today’s market, it makes more sense to pick 1-2 and go all-in to become the go-to expert.

There will be significant opportunities in office and multifamily in the years 2023 and 2024. While the office distress has already begun and buildings are being given back to the bank, multifamily will take some time to unwind and we won’t see more of those opportunities until the end of the year and throughout 2024.

Despite there being significant liquidity on the sidelines, don’t forget that many funds and institutional investors have a buy box that precludes them from buying some of the older C and D assets that many syndicators overpaid for. As a result, there will be significant opportunities for groups like us and others to acquire multifamily assets at a deep discount. Will they be the cream of the crop assets in the best locations? No. Will they provide financial profit and upside? Absolutely!

People are excited and eager to network, meet new folks, and do deals regardless of the economic environment. It is important not to let news headlines drive your entire decision making and it is important to recognize that opportunities have existed over the last century regardless of the economic climate. As a result, it is more important to focus on meeting investors one on one, explaining to them your thought process, adding value, educating them about alternative investments in the asset classes you are focused on, and seeking opportunities that have enough margin to withstand economic cycles. It is important to know and understand now than at any other time that Buying good deals with conservative underwriting and leverage is more important than timing the market – “BUY RIGHT”.

Lot of my friends who have a full time W2 job and may not have the luxury to jump into investing full time can start investing and learning about alternative investment strategies passively. Being a passive investor is often a great starting point and long-term investment plan on its own. You can learn while you earn and continue to invest passively in the one or more asset classes. I have invested in the stock market for over 30 years and have received returns which average about 6-8% a year. With inflation and tax, the returns are almost at breakeven. Investing in Real Estate helps generate passive income, allow capital preservation, and create multi-generational wealth. All this, while being tax efficient.

This year, I will be making many more investments in multi-family (this year being the buyer’s market) and may create a fund to bring out these wonderful opportunities to you. I am also, considering making passive investments in self-storage, mobile home parks, and car washes.

Scaling a business is more about the people you partner with and who are a part of your team than anything else. You can have the best laid-out plan in the world and all the money in the world, but without a solid team to execute the plan and invest, care for, and manage the money, you have nothing. One of my focus areas in 2023 will be on partnering right and hiring right.

This week I met several exceptional people. People who have achieved much in life, people who are fun to hang out with, people who are happy to share and people who are excited about the future.

Once you take care of the money aspect of life, it’s okay to let loose a little and help others. Pay it forward, stay humble, and always be a good person. I learned a lot from this conference and am happy to share all that I learnt and my thought process going forward. The vibe at BEC is very collegial and everyone likes to help everyone. Excited to be back in 2024 – already got my tickets .

Feel free to set up a time on my calendar if you want to talk about my favorite topic – Passive Income and Generational Wealth via Alternative Investments. https://calendly.com/akash_jain

#multifamily #multifamilyinvesting #apartments #apartmentinvesting #besteverconference