HyperFast Minute | April 22nd, 2022
A Minute on Something I’m Learning:
For the last couple years, I have dipped my toes in the water when it comes to cryptocurrency. I know very little about it, but enough smart people are interested in it to make me interested too. I can’t tell you if it is the new way of currency or something that is here to stay, but a $2T market is nothing you can shrug off so, I am a believer in allocating some part of your portfolio to it. My conviction is in the single digit percentile levels. I know others with even more conviction. In the last week a classmate of mine from MBA school reached out because she know works for Abra, which is a large cryptocurrency platform. The cool thing about them is they let you buy and sell crypto like a lot of the other platforms, but they also let you earn interest on the crypto you hold with them. If you want to check it out you can get started with a $15 deposit and get $25 free from Abra. Click here to check it out.
Again, I am a novice at this and still prefer real estate for the majority of my investing, but have been putting a small amount into this new area.
A Minute on Something I’m Teaching:
Consistency. This is the biggest determining factor of your success is consistency. Most people fail at first, I know I did and I still do. I get a lot of questions from real estate agents about the biggest reasons people don’t make it in the industry (the failure rate is pretty high). For most people they simply give up too soon.
We all struggle at first. When we were kids we have no problem with keeping at it. Think of a baby learning to walk. The baby keeps trying and eventually gets it. Somewhere between there and becoming an adult a lot of us lose that ability. Make sure you don’t!
One thing that helps is getting around the right people, in an environment where those people will support and encourage you. So make sure you find a tribe of people that will help push you forward.
A Minute on Something I’m Excited About:
This week we closed on the sixth unit at the View on Washington. This means that the next unit we close will start going towards returning capital and preferred returns back to our investors. For those who have not heard, this project has ten total units for living plus two retail condos and our total projected sale on it will be $15M+.
A Picture Worth Looking at for a Minute:
I always love looking at a good full moon. Here is one I captured last week hanging out with a few friends in Florida.
This is the part where I answer a question someone has texted me or asked on social media (I answer all Instagram Direct Messages). “What should I do if I am thinking about buying a home now that rates have gone up?” Great question. I actually did an entire blog article on this that was just published yesterday. You can click here to read that.
The short answer is this. While the 30 year may have gone from 4% to 6% or even higher, it is still very low compared to its overall history. So don’t be afraid to get a loan for the right house, whether it is for personal use or investment. Now one piece of advice is to look at how much an Adjustable Rate Mortgage might save you. Last year the spread between 5 year ARMs and 30 years mortgages were not enough to warrant consideration. Now it might save you a full point or even more on your mortgage. So check out both of those options and make sure you do your best to find the best deal on the house, which usually means finding an off market deal. Our real estate team gets about one third our deals for clients done with homes that are not yet on the MLS.
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Dan
