this will change the way you invest...

I just spent 4 days in Salt Lake City for The Best Ever Real Estate Conference.

(Yes, that’s actually the name… and yes, it’s actually the best ever.)

Between talks by industry leaders,

meeting up with business partners from across the U.S.,

and seeing old friends (I officially have a conference bestie and ‘Oil and Gas’ buddies)

There were 7 critical lessons that came up,

Again, and again from the best in the industry.

(listen to the FULL episode here)

(these will change the way you invest ↓)

1. Don't trust IRR (internal rate of return) without due diligence. Too much ‘shiny object syndrome’ the past few years has gotten a lot of people in trouble.

2. Intelligence is a commodity; integrity is not (EQ > IQ) is a serious consideration when selecting investment partners. Intelligence doesn’t translate to giving a sh*t about you, and your wellbeing, if a deal goes south.

3. Lower IRR many times is better

Why? Conservative GP.

Meaning, don’t choose a deal just because the IRR is higher than the next. You can take a deal from 14% IRR to 20% IRR on paper with some creative math.

If you focus just on IRR, you aren’t looking into things enough… (listen here to know more)

4. Don’t focus on the asset class, focus on the operator When it comes down to it, returns across self-storage, industrial, and multifamily can be similar. WHO is operating the deal is more important than the deal itself.

5. Track record after January 2023 > Track Record before March 2022. The unicorn market where ‘a rising tide lifts all boats' was not a great indicator of performance. Best to check how a sponsorship team has weathered the storm…

6. Expect different things from different investments (tax benefits, total returns) while returns may be in a similar range, each investment has different benefits.

Think about your goals, then choose an investment that matches it.

→ Cash flow vs. long term wealth growth,

→ Tax benefits vs. short-term deals,

→ Diversification through a fund vs. a single asset.

This is personal.

7. Trust the sponsorship team, until you have a reason not to. Once you’ve crossed your t’s and dotted your i’s, getting the benefits of investing requires trust. Trusting others, and most importantly, trusting yourself.

BONUS

One of my favs —

Economists are always predicting stuff... ... but if they were always right, they would be rich 💰

Listen to the full episode here.

Which one is your favourite? REPLY and let me know!

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If you’re ready to escape the grind and start making passive returns from real estate, let’s chat. I’d love to learn more about you and your family’s investing goals and would be happy to explain how it works. TBH it’s not perfect for everyone, but I think it’s worth a conversation to see if I can help. Here’s my calendar link to make it easy to coordinate our schedules.

Pura Vida,

Sarah