#8 – 2019.12 – The SPC Greensheet

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Dear investor,

It was a rather quiet month as we successfully closed two deals. It is a good season for taking it a little slower as we get ready for a busy 2020.

December Greensheet links

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

  1. Legal Guide
  2. Talking with your Spouse
  3. My Last rental! – https://simplepassivecashflow.com/al4/
  4. Stop Being a Crazy Rich “Mom/Pop” Asian Investor w/ Elisa Zhang – https://simplepassivecashflow.com/ezmoney/
  5. Financial Freedom for Doctors – https://simplepassivecashflow.com/doctor/
  6. Mortgage lending questions for 2020 w/ Graham Parham – https://simplepassivecashflow.com/mortgage-lending-questions-for-2020-w-graham-parham/ 
  7. eCourse is now live – SimplePassiveCashflow.com/ecourse
  8. New investor portal with 3 free modules and past deal webinars

 

  1. Apple Commits $2.5B Toward California Housing Crisis – MHN 19.11.05 – “will commit $2.5 billion towards efforts to solve the severe lack of housing and affordable housing in the Golden State. Apple’s pledge follows similar announcements made recently by fellow big tech firms Facebook and Google.” – Microsoft kicked off the commitments in January, when it announced it would invest $500 million to affordable housing in the Seattle area. Five months later, Google doubled Microsoft’s pledge with a $1 billion investment in Bay Area housing and a plan to build 20,000 units. And just two weeks ago, Facebook announced it was committing $1 billion toward affordable housing efforts in California. – [Failure for markets and public policy to meet housing needs]
  2. 2019 Rent Growth – MHN 19.11.18 -“multifamily rent growth is back in the black, increasing $1 to an average of $1,476. Year-over-year rent growth remained at 3.2 percent and has been at least 3 percent for more than a year, according to a Yardi Matrix survey of 127 markets”
  3. Class B & C Investors Circling Secondary, Tertiary Markets – MHN 19.11.04 – “Fueled by strong employment and a growing group of renters by choice, investor exuberance for multifamily properties is spilling over into older properties as well as secondary and tertiary markets. Buyer older properties and renovating them, meanwhile, can offer better returns.”“Groups that would have been looking for the newest, shiniest Class A downtown asset now have modified their strategy to allow for Class B investments,” Pesant said.“I was talking to an investor the other day who bought an asset in Florence, S.C., because it was a 7 cap,” she said. “Everything is a 5 to 5.5 cap in secondary markets. They are going to tertiary markets to get yield and going down the quality curve.” – [Not a new trend for SPC investors but here is another viewpoint of the opposite. Lesson learned is know what you are investing in a specialize and operate well]
  4. 3Q19 UNITED STATES MULTIFAMILY CAPITAL MARKETS REPORT
  5. Jersey City Joins Push to Block Airbnb – MHN 19.11.08 – “The new rules in Jersey City bar renters from listing their apartments on the site as well as owners who don’t live on-site.” – [Another reason why I don’t like STRs and prefer blue collar rentals due to this demand]
  6. Multifamily Rents Rise as Vacancy Tightens – MHN 19.11.08 – ” Effective rents for institutional properties grew by 3.3 percent year-over-year in the second quarter, up 1.6 percent over the previous quarter, as low unemployment rates and ongoing job growth fueled healthy absorption.The vacancy rate declined by 20 basis points year-over-year to 5.8 percent, even as apartment stock continues to expand by 2 percent a year, according to a new report by the commercial real estate finance firm. More than 4,400 buildings providing 797,000 units are currently under construction” – [This is a big of general data on the whole US market which is not really useful but in the big picture the demand is there]
  7. China Trade deal update 19.11.11 – Home loans started higher but were “saved” midweek when reports came out suggesting a delay of a “phase one” trade deal signing. Bonds and home loan rates like bad news, so a disruption or delay of the trade signing was the reason for rates to improve off the worst levels midweek. Word that both the U.S. and China would roll back tariffs as a deal gets put together was very good news which pushed Stocks to all-time highs at the expense of Bonds and home loan rates. Loan on same level they were at back on July 31st when the Fed cut rates for the first time in 10 years.
  8. Co-working space
  9. More than half of the world’s richest investors see a big market drop in 2020, says UBS survey – CNBC 19.11.12 – “UBS surveyed more than 3,400 high net worth investors with at least $1 million in investable assets. Fifty-five percent of respondents expect a significant drop in the markets at some point in 2020. The super rich have increased their cash holding to 25% of their average assets, the survey showed.” – [You are not the rich if your net worth is under 1M… I found it interesting that they still had 75% of their money in the game despite this outlook. This also means not dead equity too.]
  10. us economy chart corporate and household debt
  11. Hillwood to Develop 1 MSF Amazon Fulfillment Center in North Mississippi – REBusiness Online 19.11.19 – “The facility will house picking, packing and shipping operations for larger customer orders and create 500 new full-time jobs. According to The Clarion-Ledger, the new facility will be located within Hillwood’s Legacy Park, a 266-acre business park in DeSoto County. The Class A industrial campus has proximity to U.S. Highway 78 and Tennessee Highway 385; the BNSF and Norfolk Southern intermodal terminals; Memphis International Airport; FedEx Air and Ground hubs; and a UPS sort hub.” – [You need to start getting creating and looking into tertiary markets]
  12. CRE Industry Preps for New EB-5 Regulations – CPE 19.11.20 – “The new minimums have been adjusted for years of inflation. The minimum investment in assets in a targeted employment area will increase by 80 percent, from $500,000 to 900,000, and the standard minimum investment will rise by the same percentage, going from $1 million to $1.8 million.”
  13. https://www.apartmentlist.com/rentonomics/2019-millennial-homeownership-report/

 

I made some revisions with new happiness study data.

 

Plan for 2020.

Start to make key hires to help group SPC.

 

https://simplepassivecashflow.com/spouse/

Tips to have this difficult conversations

$216M Real estate controlled, 3,000 units, $24M diverted from Wall Street, 226 LIVE investors

 

Stop going to REI events and start going to private entrepreneurial and coaching groups.

 

Taking a look at asset management systems for improvement.

 

Used a $100 gift card to nice restaurant

 

My coffee sucks I might consider an espresso machine once I use all 144 remaining K-Cup pods.

I don’t like to hear about other peoples jobs because most time its just complaining. If you don’t like it do something else.

I spent twenty dollars for this voice over.

Book Report – George Clason – Richest Man in Babylon

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)
-Now with a membership coordinator check-in’s to help facilitate what you are doing and connect you with the right people in the group (if you are shy)

Learn more and apply before out max head count 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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