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.