We Love Real Estate, You Should Too - EP. 07

We’re talking real estate today. Brad walks us through the ins
and outs of finding a good deal in real estate — covering the
basics and then diving deep further into the episode.


Everybody should have some real estate exposure outside of their
current residency. You don’t want to think of your home as a real
estate investment so you should get out there and look at some
real estate deals! 


This episode we discuss the three main reasons why real estate is
a worthwhile asset class to be looking at, what cap rate is and
why it’s an important determining factor when looking to invest,
how to measure the risk of return, and when you should ultimately
decide to “pull the trigger” in a deal.


Key Takeaways:


[:27] Why we’re talking real estate today and the three reasons
why it’s a worthwhile asset class.


[7:17] As a sponsor, how do you know you’ve found a good real
estate deal? What do you look for?


[8:25] Clarifying what ‘cap rate’ is and what it indicates. 


[10:50] What other metrics does a sponsor look at when trying to
find a good deal?


[14:13] The different real estate strategies and the
opportunities you’ll see as a passive investor.


[15:42] How do you know how much you want to pay for something?
And the right way to consider cap rate in a deal.


[19:03] How to decide when to ‘pull the trigger’?


[21:05] The most important but toughest aspect about looking at
an investment: Figuring out what your annualized return on a deal
will be and how certain you are that you’ll get that.


[22:20] Considering cap rate and measuring the risk of the
return.


[23:40] Ultimately, it comes down what your annualized return is
going to be and how risky it is.


[24:52] How to think about growth in real estate.


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