They purposely make things too complicated.
When you do this for a while you can tell if a property is worth buying with a napkin and 30 seconds.
There is a lot of bad advice floating around online when it comes to real estate investing.
Time for a stiff drink and some stuff you might not want to hear.
A thread 👇
They purposely make things too complicated.
When you do this for a while you can tell if a property is worth buying with a napkin and 30 seconds.
You need to do good deals year after year and deploy 10s or 100s of millions in capital.
It’s a hamster wheel making others wealthy.
The advantage of being you:
One building like this can change your life.
I don’t care how long your interest rate is “fixed” for.
Markets are cyclical. Trends change. Bankruptcy is real.
Even a $500k property (like the one pictured above) requires $150k down and another $100k in cash reserves.
Meet people with money and convince them to invest with you.
Period.
If you can’t do that this isn’t the space for you.
When it comes to raising money from passive investors, securing loans from banks and even buying property from owners and brokers.
You are selling yourself, your vision, and your competency 24/7.
Big money investors will encourage you to do MORE AND BIGGER projects vs. smaller more profitable projects.
Can you guess why?
More money for them from your work.
The other 50 factors everyone tells you to pay attention to are noise.
Nail the big ones (operations, cashflow, tailwinds) and the outcomes take care of themselves (profitability).
No two deals are alike. There will be thousands of questions.
If you can’t make decisions with incomplete information you’ll never even get started.
But true generational wealth is created when you hold great assets for a really long time.
Figure out a way to structure your deals accordingly.
OPM (other people’s money) is expensive.
If you can get to the point where you do your best deals with your own money, you’ll get wealthy fast.
Cast a wide net. Don’t put all your eggs in one basket.
Get a lot of LPs in early deals and knock it out of the park.
The more investors you have access to, the better terms for you.
It is not passive.
If you can’t manage revenue and expenses you will lose.
Real estate is a small business with tax efficiency. Treat it as such and focus on the operations.
Things you can’t control:
Interest rates
Debt accessibility
What someone else will pay for your property
Depending on these things less to lower risk.
More from Nick Huber
How to get smarter very fast:
Interact with smart people here on Twitter who have different world-views than you do.
And let them change your mind on something.
Here are the 30 people you should follow (along with my favorite tweet from each)👇👇
Twitter can be terrible if you follow negative people.
It can also be more valuable than a college degree if you follow (and network with) the right people.
You get to look right into their brain and read a daily narrative of HOW they think.
Ok lets go:
#1: @ShaanVP
You know he's all about venture capital based entrepreneurship. I'm about small (non-sexy) business. We disagree on a lot of stuff.
But he's done it and he's won. Bonus follow: @theSamParr (@myfirstmilpod podcast
#2: @fortworthchris
He is where I want to be in 15 years. Has built a massive real estate private equity firm from the ground up. Super grounded with what the way he does business and his podcast @theFORTpodcast is top
#3: @Julian
I'm a scattered thinker and procrastinator.
Julian is a master of clear thinking and simple but effective writing. A world class example of content marketing and
Interact with smart people here on Twitter who have different world-views than you do.
And let them change your mind on something.
Here are the 30 people you should follow (along with my favorite tweet from each)👇👇
Twitter can be terrible if you follow negative people.
It can also be more valuable than a college degree if you follow (and network with) the right people.
You get to look right into their brain and read a daily narrative of HOW they think.
Ok lets go:
#1: @ShaanVP
You know he's all about venture capital based entrepreneurship. I'm about small (non-sexy) business. We disagree on a lot of stuff.
But he's done it and he's won. Bonus follow: @theSamParr (@myfirstmilpod podcast
10 years ago, Netflix spent $0 on original content.
— Shaan Puri (@ShaanVP) January 14, 2021
This year:
Netflix: $11B
Apple: $6B
Disney: $1B
+ amazon, hulu HBO etc.
=
$20B+
Here's a crazy startup idea to take a swing at this $20B+ content pi\xf1ata. \U0001f447 Here's a quick business plan \U0001f914
#2: @fortworthchris
He is where I want to be in 15 years. Has built a massive real estate private equity firm from the ground up. Super grounded with what the way he does business and his podcast @theFORTpodcast is top
When buying a deal, every day that goes by, the potential for tunnel vision grows.
— Chris Powers (@fortworthchris) January 7, 2021
Obsessing over executing detailed Due Diligence early and efficiently is paramount to limiting this.
#3: @Julian
I'm a scattered thinker and procrastinator.
Julian is a master of clear thinking and simple but effective writing. A world class example of content marketing and
THREAD: 10 significant lies you're told about the world.
— Julian Shapiro (@Julian) January 9, 2021
On startups, writing, and your career:
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I'm going to do two history threads on Ethiopia, one on its ancient history, one on its modern story (1800 to today). 🇪🇹
I'll begin with the ancient history ... and it goes way back. Because modern humans - and before that, the ancestors of humans - almost certainly originated in Ethiopia. 🇪🇹 (sub-thread):
The first likely historical reference to Ethiopia is ancient Egyptian records of trade expeditions to the "Land of Punt" in search of gold, ebony, ivory, incense, and wild animals, starting in c 2500 BC 🇪🇹
Ethiopians themselves believe that the Queen of Sheba, who visited Israel's King Solomon in the Bible (c 950 BC), came from Ethiopia (not Yemen, as others believe). Here she is meeting Solomon in a stain-glassed window in Addis Ababa's Holy Trinity Church. 🇪🇹
References to the Queen of Sheba are everywhere in Ethiopia. The national airline's frequent flier miles are even called "ShebaMiles". 🇪🇹
I'll begin with the ancient history ... and it goes way back. Because modern humans - and before that, the ancestors of humans - almost certainly originated in Ethiopia. 🇪🇹 (sub-thread):
The famous \u201cLucy\u201d, an early ancestor of modern humans (Australopithecus) that lived 3.2 million years ago, and was discovered in 1974 in Ethiopia, displayed in the national museum in Addis Ababa \U0001f1ea\U0001f1f9 pic.twitter.com/N3oWqk1SW2
— Patrick Chovanec (@prchovanec) November 9, 2018
The first likely historical reference to Ethiopia is ancient Egyptian records of trade expeditions to the "Land of Punt" in search of gold, ebony, ivory, incense, and wild animals, starting in c 2500 BC 🇪🇹
Ethiopians themselves believe that the Queen of Sheba, who visited Israel's King Solomon in the Bible (c 950 BC), came from Ethiopia (not Yemen, as others believe). Here she is meeting Solomon in a stain-glassed window in Addis Ababa's Holy Trinity Church. 🇪🇹
References to the Queen of Sheba are everywhere in Ethiopia. The national airline's frequent flier miles are even called "ShebaMiles". 🇪🇹
Recently, the @CNIL issued a decision regarding the GDPR compliance of an unknown French adtech company named "Vectaury". It may seem like small fry, but the decision has potential wide-ranging impacts for Google, the IAB framework, and today's adtech. It's thread time! 👇
It's all in French, but if you're up for it you can read:
• Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
• Their high-level legal decision: https://t.co/hwpiEvjodt
• The full notification: https://t.co/QQB7rfynha
I've read it so you needn't!
Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.
The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent — this will be the heart of their assessment.
Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have — though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.
It's all in French, but if you're up for it you can read:
• Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
• Their high-level legal decision: https://t.co/hwpiEvjodt
• The full notification: https://t.co/QQB7rfynha
I've read it so you needn't!
Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.
The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent — this will be the heart of their assessment.
Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have — though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.
