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The Power of Compound Interest
Warren Buffett is widely known for saying the single most powerful factor behind his investment success is compound interest. That’s usually his quickest response when asked; “What’s made him successful?” He’s been focused on compound interest investments (purchasing large amounts of dividend paying stocks and always reinvesting dividends) for over six decades, and it’s made…
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My Top Four Books for Real Estate Investors
Real estate investors are always on the hunt for more information and education. They love to network and grow their mindset to achieve big goals. If that sounds like you, then you’re in luck! I’ve compiled my list of the top four books for real estate investors to help you on your journey. These books…
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How to Thrive in a Recession
In today’s world, it is hard to escape the headlines. Inflation has surged to a 40-year high. Recession signs are looming. And everyone is wondering what the next few months will look like for the United States. But recessions are not new, and we should not expect them to never happen. Looking at the stats,…
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The Experts Agree. This is not an Option…
When I first started investing in single-family real estate, there were two rules of thumb that I used to determine whether a deal was worth further evaluation. The first is the 2% Rule: For a rental property to cash flow well, the monthly gross rents should equal 2% of the purchase price. So, if you…
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Equity Waterfall Structures and Hurdles
What are equity waterfalls? An equity waterfall is the breakdown in a private equity real estate transaction that outlines how the distributions will be handled between the operator and, you, as the passive investor. In private equity real estate transactions there are typically 3 different waterfalls to consider: Cash Flow Waterfall: how the cash flows…
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A Life Lesson From Shaquille O’Neal
Last month, I participated in a conference where ex-NBA great Shaquille O’Neal spoke. Beyond being, literally, larger than life in his physical presence and personality, he has an incredibly refreshing perspective on life, wealth, and what matters. While the event and conversation were geared around real estate investing, it was clear from the outset that…
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The Lazy 1031 – A Viable Alternative to a 1031 Exchange
Three years ago, I sold four of my single-family properties to take advantage of what I thought was the top of the Indianapolis real estate market. However, the sale would trigger a significant capital gains tax (fortunately I was making money on them), and I would also have to pay the depreciation recapture since I…
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The Circle of Competence
One of my favorite books of all time is “The Snowball.” I consider it to be one of the best biographies ever written. I’ve read it at least three times. It brilliantly recounts Warren Buffett’s life. One thing that strikes me (and millions of others) is when you see interviews, documentaries, and specials on the…
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Banking on Yourself: How to Use Whole Life Insurance to Safeguard Assets and Boost Returns
“Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t… pays it.” – Albert Einstein. This little wealth-building gem was brought to my attention by Chris Larsen of Next-Level Income. It’s a tool of the wealthy (or soon-to-be wealthy) that hasn’t received the press it deserves over…
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How to Create a Rich Life Through Passive Real Estate
I’m a recovering single-family residence investor. Don’t get me wrong, I still love the hustle of finding a property, the game of negotiation, and the thrill of closing a deal. But, for me, that is where the fun ends. As a real estate investor, I often wrestle internally with the question… “I should LOVE real…
