#7 – 2019.11 – The SPC Greensheet

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Dear investor,

We wrapped up a couple of big deals recently!

I just got back from Maui where I gave this talk (video replay). And San Francisco where I gave this talk (video replay).



Something about going on a short retreat puts things in perspective…

This year was a great year with the following Hui Deal Pipeline Club deals:
1) 309-Unit, Class-C+ Apartment @El Paso, Texas
2) 207-Unit, 5 Mobile Home Parks @Gulf Shores, AL
3) 80-Unit, Class B Apartment @Gulfport, MS

4) 104-Unit, Class B Apartment @Huntsville, AL
5) 212-Unit, Class B+ Apartment @ Irving, TX

Thank you all for your support and joining me on this journey!

I will be “taking it easy” these next couple months.

If you have anyone that is looking to get out of volatile stock market which seems to get worse as Trump and the Fed battle behind the scenes… please connect us via email*.

A referral to a friend/family is the best compliment. It is my mission to get people to financial freedom.

As we have seen when I posted my 2018 taxes and paying 4%… its un unfair game.

Now some rest and relaxation.

November Greensheet links

1) PDF Version
2) Web version
3) Video version

  1. Untold Stories of being a W2 Lawyer (#169)
  2. $1,700 passive a month w/ 7 rentals w/ Realliferentals.com
  3. Cap Rates in Real Estate Explained (#171)
  4. SEC Advisory
  5. Legal Strategies for Real Estate Investors w/ Scott Smith #172
  6. Live Coaching call (Non-Accredited $300k net-worth) #173

 

  1. Update from Mr. Duncan – QE4 (inflation) has begun (From QT) – New round of asset purchases through $190B Repos
  2. 2019 Top US Markets Reports for Large Multifamily Report – Arbor – [I did not find this report one bit useful as I like secondary and tertiary markets that do better than these top tier markets… and cashflow]
  3. 2019 Metro-Level Small Multifamily Investment Trends Report – Arbor – [Good discussion on differences between caps on tier 1/2/3]
  4. Blackstone Bets $4.3B on Bellagio – CPE – 19.10.16 – “MGM Resorts International have entered into an agreement to acquire the Bellagio in Las Vegas… hotel and casino development has been limited since 2010. In another deal that emphasizes Las Vegas’ healthy market, MGM Resorts entered into an agreement to sell Circus Circus Las Vegas for $825 million to real estate mogul Phil Ruffian.” – [Illustrates what happens to assets as they age]
  5. ALN 2019 Q3 Review – [Good write ups on high level of each market. Again remember its more able submarkets than overall markets]
  6. Repurchase Agreement (Repo): form of short-term borrowing for dealers in government securities. In the case of a repo, the dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day.Repo markets are generally used by banks and financial institutions to fund short term/ overnight liabilities using assets such as U.S. Treasuries, securities or other intangible property as collateral. It is where financial institutions go when they need short term cash, in exchange for some collateral, like Treasuries or mortgage securities, for a short-term loan. Rather than having to sell off assets to pay or fund liabilities, institutions can use these overnight markets to access liquidity. The Federal Reserve has provided liquidity through injections of funds ($200B) into the Repo markets in order to calm them.
  7. Vacancy Falls, Rents Rise for Manufactured Homes – MHN 19.10.10 – “steady cash flows, the potential for higher returns and the reduced management headaches compared to other property types. The scarcity of product means that large top-tier community that do hit the market will attract multiple offers from a range of buyers, driving sale prices higher. Marcus & Millichap finds that cap rates for these assets tend to fall in the 4 to 5 percent range but can be as low as 3 percent.Manufactured housing REITs are surging.” – [MHPs are an endangered specie. Dumb money is definitely going into multifamily apartments at this point and its smart to diversity to get away from the crowd]
  8. Escape Illinois – Mish Talk  19.10.05 – [There always was a lack of reliable turnkey providers in Chicago. Plus it also has bad landlord laws. Population is declining too] 
  9. Retailers Look to Capture the ‘Laptops and Lattes’ Crowd – REBusiness – 19.09.24 – [Interesting look at retailing trends, parking at 45 min gyms, food/fun/fitness/fashion]
  10. Worst states for taxes – Market Watch – 19.10.5 –  
  11. November 2019 Rent Report – Apartment List – 19.11.2 – “Our national rent index ticked up by 0.1 percent from September to October. Over the three month period from March to June rents increased by 1.3 percent, the fastest growth over any three month period since the summer of 2017. However, since June, rents have been essentially flat, representing an early end to the summer spike in rent prices.” – [Normal seasonality throughout year] 
  12. 5 Markets With the Greatest Occupancy Loss – MHN – 19.10.23 – [One of our projects is cashing out in Chattanooga and we did not see this down trend what so ever? Fake News!]
  13. Vacancy Falls, Rents Rise for Manufactured Homes – MHN News – 19.10.10 – “Vacancy in manufactured home communities is tightening across all regions of the U.S., as renters increasingly turn to low-cost housing options, according to a new national market report by Marcus & Millichap” – [Thats why we like MHPs – more info]
  14. Holiday Shoppers Plan to Spend 4 Percent More This Year, NRF Survey Shows – RE Business Online – 19.10.29 – [Lets wait and see what happens] 
  15. NOI vs. Capex Yield – CPE 19.11.2 – “Variables such as age, location and property type can influence how much capex is required to operate an asset”
  16. Fannie Mae 3.5% Mortgage Bond (Friday Oct 25, 2019) 

I made some revisions with new happiness study data.

 

Two speaking engagements where I gave this talk (video replay).

And San Francisco where I gave this talk (video replay).

 

I am on a mission to give the secrets of the wealthy to everyone.

I recently used an S-Corp so I can start having 14 corporate meetings a year at my home.

Here is some of the work I put in to determine the fair market value of me renting out my home to my self per day.

  

 

Decided to hire some staff and take myself out of the business.

Simplepassivecashflow.com/jointeam if you have any impressionable family members who would like to start off on the right foot.

 

Decided to shut it down for 2019 and get ready for 2020!

 

Plan a vacation to Japan!

 

40-50 emails a day so I decided to filter ALL emails to be read later in the day so I only have to deal with a dozen must reply emails in my first hour of the day.

 

 

I broke down and bought Youtube Premium

Book Report – Gary Vaynerchuk – Crushing It

Complete #LaneHack list

Passive Investor Accelerator & Mastermind

-Mostly Accredited high paid professionals to connect with personally and build your own network (currently 45 members)
-27 modules of content in a closed membership site
-Bi-weekly Zoom Video calls (25+ on-demand recordings a year plus all library of past calls)

Learn more and apply before out max headcount is reached and 2020 pricing takes effect – SimplePassiveCashflow.com/Journey

If can do me a favor… If you get a chance people review leave a review for the podcast on iTunes (https://podcasts.apple.com/us/podcast/simple-passive-cashflow/id1118795347) and email simplepassivecashflow.com to a friend.

 

 

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