The wealthiest person I know prints millions out of thin air in the real estate business.

This is what he does...

A thread.

He finds a distressed retail plaza. Let's say 50% of the space isn't leased.

On a 300,000 sf plaza that might mean 150k square feet is vacant.

If asking rent is $8 per square foot per year, that means the building has a "potential revenue" figure of of $2.4MM.
So in this retail center 50% is leased and 50% is vacant. So the actual revenue, right now, is $1.2MM.
Most retail leases are whats called "Triple Net" or "NNN". This means the tenant pays the taxes, insurance, maintenance and CAM (common area maintenance).

They basically pay all of the landlord's expenses (except debt service on any loans he/she has, of course).
Commercial properties are valued based on something called a "cap rate".

The equation is:

net operating income / (cap rate) = value

The cap rate is a %.

Think about it as the return on your money, annually, as a percentage, you spent to buy a property.
If you want a 7% return on your overall spend (not taking into account debt on the property) you'd buy at a 7 cap.

An 8% return would mean an 8 cap.
Cap rates (as a measure of value) change based on risk, upside, trends and investor appetite for a certain type of asset.

But the bottom line is this:

Commercial real estate is valued based on how much money it makes (Net Operating Income)
Increase NOI --> increase value

Decrease NOI --> decrease value
Back to my friend.

He's looking at a distressed asset. Half vacant. So there is some upside potential. That potential is baked into the cap rate he can buy it at.

So he makes an offer to buy at an in-place 6 cap.

The NOI = 1.2MM

Cap rate is 6

A quiz -> what is the value?
You guessed it. $20MM.

So my friend gets the property under contract for $20MM.

And while its under contract, before he buys it, he pulls an ace out of his sleeve.
You see my friend owns several Planet Fitness franchises and also several trampoline park franchises.

So he prepares his plans to sign long term leases with both of these businesses the day he closes on the property.
And the day he closes he does so and they both move in.

And now the retail center is 100% full.

Bringing in $2.4MM a year in NOI.
So now what cap rate would we use to value this full retail center with long term leases in place across the board?

The upside is gone, so the cap rate will go up slightly, and my friend generally achieves an 8 cap valuation here.
So with $2.4MM in NOI, what is the new value at an 8 cap?
You guessed it. $30MM.

So my friend just bought a building for $20MM, signed two leases, and now its worth $30MM.

So he created $10MM of value out of thin air.

And he does this to two or three retail plazas a year.
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Many businesses & creators have experienced a similar pattern of success.

From @MrBeastYT and @MorningBrew to @oatly and @Rovio.

Let's break down what "The Balloon Effect" is and examples of it in real life.

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1/ What is "The Balloon Effect"?

It is a particular pattern of growth.

It is not Instagram's growth trajectory.

It is not
https://t.co/5axsTUKek6's growth trajectory.

"The Balloon Effect" is defined by several years of hard work & grit complemented by slow, linear growth.

2/ And then one day, one month, or one quarter...everything changes.

A business hits a tipping point and its trajectory shifts entirely.

Gradual growth turns to exponential growth & your brand and your size explode.

Like a step function.

3/ Now, you're probably wondering.

Why is it called "The Balloon Effect"?

Because filling/popping a water balloon follows the exact pattern I just described (and so many businesses experience).

Long unsexy slog 👉 Exponential tipping point.

4/ Initially, you turn on the faucet & water takes up space in the empty balloon.

Through effort you open the faucet, yet the results are unexciting.

But it's what must be done for water (or growth) to happen at all.

It's not sexy, but it's necessary.

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The Swastik is a geometrical figure and an ancient religious icon. Swastik has been Sanatan Dharma’s symbol of auspiciousness – mangalya since time immemorial.


The name swastika comes from Sanskrit (Devanagari: स्वस्तिक, pronounced: swastik) &denotes “conducive to wellbeing or auspicious”.
The word Swastik has a definite etymological origin in Sanskrit. It is derived from the roots su – meaning “well or auspicious” & as meaning “being”.


"सु अस्ति येन तत स्वस्तिकं"
Swastik is de symbol through which everything auspicios occurs

Scholars believe word’s origin in Vedas,known as Swasti mantra;

"🕉स्वस्ति ना इन्द्रो वृधश्रवाहा
स्वस्ति ना पूषा विश्ववेदाहा
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The Swastika represents the living creation in the whole Cosmos.


Hindu astronomers divide the ecliptic circle of cosmos in 27 divisions called
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