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Editor’s Note: Dennis Fassett is a former corporate finance executive turned real estate investing "Cash Flow Mercenary". Dennis specializes in single-family and multi-family cash flow properties, and thoroughly enjoys assisting his fellow investors with their own strategies, including how to buy your first apartment building.
As an ongoing contributor to Mogul “Market News Updates”, Mr. Fassett offers us with his own unique, lively, and thought-provoking commentary on the timely industry news and events of today that are impacting our industry. Enjoy...
The first thing I thought of when I saw a piece in Bloomberg news was a line by John McLane from the first Die Hard movie -
“Welcome to the Party Pal!”
The piece I saw trumpeted that, “Millionaires See Real Estate as Top Investment for 2014”.
Woo hoo!!
The second thing I thought of was BFD. We’ve known about real estate being better than stocks and bonds since, what, the Clinton Administration?
But nonetheless, the weathervane financial “press” seems to work overtime finding the flavor of the month that the big brokerage houses can use to shear the sheeple that follow their advice.
So one day it’s stocks, the next day it’s bonds, the next week it’s currencies, and the next it’s emerging markets. And then once in a great while their wheel-of-fortune stops on real estate.
That Day is Today.
The financial press is pretty much all-in on real estate right now.
This particular article positively gushed about the opportunities in real estate.
They wrote: “Direct ownership of residential and commercial properties was the No. 1 alternative-investment pick for 2014, with a third of millionaires surveyed saying they plan to buy this year.”
And “…wealthy investors are turning to a rebounding real estate market as fixed-income yields remain historically low and equities surge. U.S. commercial-property values rose 8 percent in the 12 months ended Jan. 31, and have jumped 71 percent since hitting their post-recession bottom in 2009.”
That’s ivy-league-MBA-speak for millionaires think bonds aren’t paying enough and at the same time they’re afraid that the stock market is overheated and is going to tank this year. And that even though property prices have soared to stratospheric heights, it’s still better than betting on the stock market.
Yeah people really get paid to write like this.
And one Einstein they quoted said with actual surprise that, “The really good real estate deals are getting harder and harder to find!”.
Yeah thanks Captain Obvious. And in other news – water is wet.
The Opportunists Take
Hey listen. It’s true that a lot of millionaires get lead around by the nose by their financial “advisors”. And we can sit around all day yucking it up bashing them and having a great time doing it.
But I consider myself an opportunist. And so what I’d rather do is find a way to profit from whatever situation I find myself in.
And this one isn’t any different.
Let’s recap, shall we?
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Millionaires are being told that real estate is the place to be in 2014
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Millionaires have a lot of money. (Yes, Captain Obvious strikes again)
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As real estate investors, we can use pretty much all the money we can get our hands on
Sooooooo - this seems like a marriage made in heaven, doesn’t it?
Are You Catching My Drift?
I’m thinking that 2014 sounds like Private Money Ninja time.
So guess what I’m going to be doing this weekend?
Updating my Credibility Kit with this new recommendation on real estate.
Then I’m going to carpet bomb everyone I know with it - and get it into as many willing hands as I possibly can.
Because you can never have too much private money, can you?
How about you?
Please share below. I’m all ears.
Dennis Fassett
earned a BS in Economics and followed that up with an MBA in finance. After working and corporate finance and banking for several years, he started buying single family houses, and quickly built a very nice portfolio of cash flowing rentals. When the credit markets started to dry up and he couldn’t get any additional single family mortgages he shifted his focus to apartment buildings. He now has over $3 million in rental real estate. He manages most of it his self and still has a day job. Dennis has even created his own Private Equity fund to buy apartment buildings.