Rule72 Equity

During conversations with investors, REITs will sometimes get mentioned. Why invest in a private placement if I can just buy public shares of a real estate company?

No relationship with who you’re investing in ❌

No direct depreciation tax benefits 🙅🏼‍♂️

A highly liquid public stock also makes your investment subject to volatility 📊

Since this tweet, I learned that median income is actually lower - around $70k. It’s important to note that I’m the LAST person who cares what you do with your money. You should live your life however you please 🤌🏼

But, if you’re trying to grow long term wealth by investing regularly and wondering where to start, it’s here 🎯

Find a way to increase income - new skills, networking events, side hustle, the list goes on. Next, cut unnecessary expenses and create a healthy margin that strengthens your savings rate. Then, have at it 📈📈📈

In this month’s newsletter, I wrote about a common topic that comes up on almost every investor call I have:

“Should I be focusing on cash flow or equity growth?”

There’s a lot to consider when making this decision. If you’d like to talk about this concept or any other related to passively investing in real assets, DM me.

📫 Sign up for the R72 monthly newsletter at the link in bio 📫

“Long” is relative. Most of the investments I target for my investors will have, at minimum, 7 year fixed-rate financing to reduce risk. That debt is specific to multifamily, as every asset class will vary.

What’s your take on structuring debt for your investments?

Are you investing for cash flow or growth? Both have merit, but ongoing, sustainable cash flow is hard to argue against 💵

My next video will cover this topic and highlight some things to consider with each 💰📈

Something I wish I did even more of in the first few years of my career. “Your network is your net worth.”

What would your advice be?

What are you trying to achieve by putting your money to work? Cashflow, wealth preservation, capital growth, tax benefits, etc…start there first. Then, allocate accordingly 💸

Given a number of negative headlines floating around, in this month’s newsletter, I share a few thoughts on how we got to this point in RE syndication - just a 5 minute listen.

More importantly, you can download a free, 33-point due diligence checklist to utilize on future opportunities. As always, would appreciate you following along and sharing any feedback you may have. Necessary links in bio 🤝

Happy investing!

Great meeting up last week with our partners at Lone Star Capital here in Phoenix 🤝

Unlike stocks, real estate is an inefficient market. Opportunities can be capitalized on with a little more effort. For example, poor management practices from an out-of-state owner, or physical distress at the property with an opportunity to increase value through renovations.

The good news? You can capitalize on these inefficiencies, completely hands off, as a passive investor. Website in my bio for more info 🤝

Sometimes peace of mind is the best return ✌🏼

Links in bio 🤌🏼

From the man who wrote The Psychology of Money…investing is a marathon. Find opportunities that make fundamental sense and stay consistent.

I borrowed this slide from via his interview on the podcast.

“Soft Landing” is a term that’s been around since the 70’s, and yes, it’s been used countless times preceding some of the biggest economic downturns.

After dozens of investor calls, I’ve compiled some of the most common questions that come up in our conversations and published them on rule72equity.com 👨🏼‍💻📝

You may have some questions that are not listed. In that case, click “schedule a call” and I can get them answered 😁🤝

Links are in the bio!

Follow the money!

🏦➡️🤝

💧Highly liquid investments - stocks, mutual funds, ETF’s - allow investors to buy & sell at the click of a button. As an investor, that’s a big benefit…it’s easy to cash out 💧

🎰 Playing this game, however, you’re also subject to the emotional irrationality of all other sellers in the marketplace. Fear compounds over a few bad headlines, fundamentals go out the door, and before you know it, there’s a selling spree 🎰

🪙 Hedge this by investing real assets that are valued on nothing more than their ability to produce income. That is all 🪙

Attended my first Rev meet up tonight and heard from some fantastic people, including the one and only ✅ ✅

Thanks for putting on a great event 🙌🏼👏🏼

Can’t earn a return if the principal is lost 💸💸

Said differently from Warren Buffet:

“The first rule of investing is don’t lose money. The second rule is don’t forget the first.” ✅✅

Spot on 🎯

What everyone’s really after is complete time autonomy 🕙

And it’s absolutely within reach:

1) Create strong, consistent financial habits 💪🏼
2) Invest in income-producing assets that put money in your pocket 💰

Credit to the Twittersphere for these graphs, which show the inflation of goods & services over the last 20+ years 📈

**Takeaway** Put your dollars to work in alternatives like real estate, which help insulate your investment from inflationary pressure and maximize Real returns ➡️🏙️

Good takeaways from last night’s Apartment Investment Mastery meet up with and .

They provided a solid market update on Phoenix, and to close out, we heard from Kyle Mitchell with on deal sourcing.

Nicely said by Jason Hartman in a recent interview with 🎯🎯

You’ve heard me discuss debt debasement, or what Jason refers to as, “inflation induced debt destruction”. 💰🔥

If you have a $1M real estate loan and inflation is running at 8%, that’s an $80,000 tailwind at your back, chipping away at your debt for you. One of the many, many ways investing in real estate can make you money. And yet another reason responsible debt can amplify your returns. ✅🌇

Awesome passive investors meet up tonight at the office. Great job putting this together and facilitating 👏🏼👏🏼

cc:

I had some luck renovating single family homes, increasing their value, and refinancing my cash back out for reinvestment. Often called the “BRRRR” strategy (buy, rehab, rent, refinance, repeat). It’s a good model that’s gained popularity thanks to platforms like BiggerPockets 🏚️🏘️

But over the years, I got more in touch with my true investor philosophy: Passively investing in Real Assets that produce income. Simple as that ✅

By becoming an equity partner alongside experienced operators who have a track record and can add real value to their investments, I’m still able to achieve great returns with minimal effort. Why do all the work when I can reap the same benefits real estate has to offer, simply by writing a check? 💰💰

One thing I encourage everyone to do is get clear on your end goal - what is it that you want? Then, let your strategy follow. It’s not all about what makes sense on paper or what generates the best risk-adjusted return. Investing is more about what aligns with you and your end goal. 🤝