020: Trends, Strategies, and Opportunities

We specialize in providing flexible short-term hard money and transactional loans for real estate projects. We also invest in equity of strong real estate projects with proper leverage and strong sponsors.

020: Trends, Strategies, and Opportunities

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Today’s episode is a solo one. I have put together a presentation to discuss the current real estate market trends, strategies, and opportunities for 2018. I will be posting my slideshow for this episode later on, so stay tuned for that.

I cover some basic terms and popular strategies that every investor should know. If this is your introduction to Tempo Fund Management, my name is Mike Zlotnick. I am the host of the Big Mike Fund Podcast and I am the fund manager at Tempo Fund Management. I will go into more detail about our business and our investment philosophy during my presentation.  So, if you are thinking about exploring the real estate market this year, this episode is a great primer.

MINUTE MARKERS:

00:00 — Introduction to the Big Mike Fund Podcast.

00:22 — Today’s topic: 2018 Investment Opportunities.

01:08 — A disclaimer for my listeners.

02:00 — Who is Tempo Fund Management?

02:34 — Our areas of expertise and what we do for our clients.

02:28 — The difference between investing and speculating.

04:18 — The 2 components of a total return.

06:01 — The 2 elements of a return on investment.

06:46 — The 2 types of appreciation.

07:22 — The 3rd element, depreciation.

08:03 — Types of investment strategies.

09:14 — What are Growth and Income investments?

09:34 — The current market outlook.

10:23 — Types of asset classes.

11:10 — Asset Classes: Cap rates.

12:26 — Asset Classes: Interest rates.

14:00 — Why Amazon is “eating everybody’s lunch.”

15:04 — The opportunities in the current housing market.

15:56 — “The trend is your friend.”

16:30 — Why the high-end housing market is slowing down.

17:35 — Current opportunity: Multi-family renewable mortgages.

18:21 — Why turn-key deals are disappearing.

19:07 — The rise of the momentum deal.

20:35 — The benefit of having 2 exit strategies.

20:59 — Why Value Add is a good investment avenue.

21:19 — The types of value-add investments.

24:02 — Why you should consider investing in self-storage.

26:58 — What are constraint plays?

28:21 — Current opportunity: Service centers.

30:34 — The pros of a constraint play.

32:52 — How to understand, manage, and mitigate risk.

33:29 — How to cope with interest rate increases.

35:18 — What to do when the asset price drops.

36:29 — The recession-resistant sectors.

37:08 — The best advice I have received.

38:30 — Individual deals vs. Funds

39:24 — Individual deals vs. Funds: Liquidity.

40:44 — Individual deals vs. Funds: Personal Guarantees.

41:32 — Individual deals vs. Funds: Liability risks.

43:30 — Individual deals vs. Funds: Capital needs.

44:40 — Tempo Fund Managements current financial outlook.

46:55 — How to reach me.

47:26 — My book: How to Choose a Smart Real Estate Investment Fund.

48:15 — Thank you for joining me for today’s podcast.

48:30 — Outro to the Big Mike Fund Podcast.

RESOURCES

How to Choose a Smart Real Estate Investment Fund

Big Mike Fund Podcast

Tempo Fund Management

My email