010: Investing in Different Asset Types part 2
Lesser known asset types that can change the game
Adding to your knowledge base of asset types is just like stacking skills and dominating a sport. Take a little time to add to what you know and the payoff will be huge!
Overview:
The episode provides insights into various types of assets that syndicated investors can consider for their portfolios.
Syndicated investors have a wide range of options to explore, each with its own set of pros and cons.
Consider factors such as cash flow, growth potential, tax advantages, and recession resistance when evaluating different asset types.
Asset Types Covered:
1. Self-Storage:
Extremely recession-resistant.
Institutional capital has shown increased interest.
Opportunities for smaller facilities and rent increases.
Lower overhead and maintenance compared to other asset types.
2. Single Family Rental Portfolios:
Less efficient compared to multifamily.
Lower turnover but potentially limited long-term growth.
Ideal for those looking for less frequent turnover.
3. Flips:
A scaled-down version of value-add multifamily deals.
Offers significant upside but is sensitive to market conditions.
Requires finding excellent deals and efficiency.
4. Industrial Deals:
Includes warehouses and storage spaces.
High demand due to e-commerce trends.
Large spaces with few tenants; potential for stable long-term leases.
5. Office Buildings:
Can be high-risk post-COVID.
Unique and varies by deal; requires anchor tenants and long-term leases.
6. Commercial and Retail:
Susceptible to direct-to-consumer trends.
Consider businesses requiring physical presence (e.g., dentists, salons).
Market research needed due to varying demand.
7. Hotels:
Experiences significant fluctuations.
Dependent on management and customer service.
Separate from multifamily due to the nature of the hospitality industry.
8. Neighborhood Developments:
Involves buying land and creating residential lots.
Potential for substantial upside but lengthy timelines.
Vulnerable to local market changes and nuances.
9. Investing in Businesses:
Requires a strong operator with business experience.
High risk with unlimited upside potential.
Distinction between startups and established businesses.
10. Car Washes:
Membership models offer recurring revenue.
Recession-resistant; people need to wash their cars.
Often includes real estate, adding to the potential benefits.
11. ATM Machines:
Provides a stream of cashflow.
Allows for bonus depreciation benefits.
ATM transactions remain significant despite decreasing cash usage.
No depreciation recapture when the machines are replaced.
12. Miscellaneous Options:
Flipping raw land, buying mortgage notes, parking lots, and more.
Each option has its unique risk and reward profile.
Conclusion:
Investors should consider their financial goals, risk tolerance, and desired portfolio mix when choosing asset types.
Diversification and understanding the specific characteristics of each asset class are essential.
For more information, visit AreteInvesting.com and explore their resources.
Take Action:
Rate and share the podcast to help others discover alternative investment opportunities outside the stock market.
Reach out with any questions or inquiries.In the fierce arena of investments, understanding asset types is paramount. I'm not just talking about real estate; I'm unveiling the raw power of syndicated deals, a treasure trove that few dare to explore. Before we dive deep, let’s discuss the trinity of investment mastery: risk, returns, and a relentless drive to align with your goals.
