How to Change A System: Minorities Need To Stand Up & Invest More
Updated: Dec 6, 2021
“I’m not trying to be ‘hood rich’, I’m trying to make the hood rich” – John Henry
Is the system rigged? The GameStop debacle should open your eyes, otherwise you, will have to dig up the history books to find the answer for yourself. Can you effect change? Yes, by taking action and doing something towards that change. In other words, "be the change." Thanks to Tito Luis & Yadira, my parents, I had a very socially conscious upbringing. Early on, my parents taught us the value of eating healthy, exercising and education (both are athletes and have multiple college degrees, including a PhD). As children, they took us to rallies demanding social change and their histories are decorated with being examples to effect change in the community. My parents always urged me to be part of the solution, never part of the problem.
This awareness is what sparked the mission that we are on at Ten15 Capital, and it flows down to all of our partnerships.
We are a mission oriented investment group.
In 2018, Forbes published an article on a financial study that showed an alarming trend: Minority households will have negative net worth by 2050. Let that sink in. That is our lifetime, our children’s lifetime, and their children’s generation. What is going to happen to our legacy? What is going to happen to our children’s? This is very real, and this is us! What is going on? It is our duty to find out and to impact that trend.
That Forbes article resonated with me. It fueled a motivation to take action, take risks and to get to work on a solution. My commitment is to create wealth building opportunities to minorities and women, who are often left out. By building on these opportunities, we can curb the wealth inequality trend, one person at a time, one family at a time.
The message is clear: to effect change, you must first be the change, then spread the message.
This is the reason I have been visible in podcasts, investment meetups and speak at local groups. I want people that look like me to see that you don’t have to be a certain mold. You can be you. It is possible to participate in America’s wealth game and win. The system does not have to be rigged for us if we know the rules of the game. Each and every one of us can participate if we are shown how to discover the opportunities.
This is the reason why Lupita started her popular podcast, “Success en Español”, which focuses on Hispanics and other immigrants’ stories of courage and overcoming obstacles to reach an American Dream (thank you all who have participated! Your stories have been impactful). This is the reason why we created our quarterly investor educational seminars. This is the reason we dig deep in our newsletters with the intent to educate and bring the best value we can to our partners.
“Commitment to a solution is the answer to the problem” – Eric Thomas.
Why apartment complexes? In my research, I have found a common thread in America’s wealth building. For investors, real estate offers the best way to develop and retain wealth. Over the last two centuries, 90% of the world’s millionaires have been created by investing in real estate. Although we may not be striving for the life of the rich and famous, in order to effect change in our communities we must be able to tap into the wealth frequency.
Tom Wheelwright states: "By now, everyone knows real estate doesn't always appreciate. So buying a house with the sole goal of selling when it goes up in value is not a sound wealth strategy." - Tax Free Wealth, Tax Strategy #19. To clarify, these real estate wealth builders didn't necessarily achieve it one single family house at a time, it was through commercial real estate.
The mechanism of the wealthy has been to invest as groups, mostly syndications and joint ventures. The easiest way to do this is through the purchase of an apartment complex (a multifamily asset of more than 5 units), bringing together a group of passive capital partners to close on the deal and have it managed by an experienced third party Asset Manager.
“Dedicate yourself to a commitment or cause” – Eric Thomas
Who are the passive capital partners? They have historically been wealthy institutions and individuals, but the model works on our level as well. This spreads risk among the team as opposed to a single individual and also minimizes that risk through economies of scale (multiple units as opposed to one). For the average investor, real estate offers the best way to develop significant wealth passively using these models over time.
This system is designed to be done as a team and everyone benefits. These benefits are seen in:
Cash flow. The money left over after all expenses have been paid.
Appreciation. The value of the asset is increased by raising rents.
Depreciation. The United States Tax Code is ripe in benefits for apartment owners.
Leverage. Banks LOVE apartments and offer very attractive interest rates, amortization tables and low down payments. (They are basically majority partners).
Loan Pay Down. Tenants pay your mortgage down for you.
Inflation. The rents are raised every year to keep pace of inflation as opposed to cash, which loses value over time.
Join the Ten15 Capital team. Let’s impact our communities together and bring wealth to our families. We will educate you to ensure you are armed with the knowledge to make informed decisions. We will help you invest in real estate while providing you all of the benefits of investing without the time commitment or complexity of ownership.
This is truly passive. This is truly a partnership.
While all transactions are structured differently, it basically works like this:
You choose which of our Joint Venture or Syndication opportunities is most appealing to you.
You invest alongside us.
Depending on the investment, we typically send you a small check every quarter and then a large check when we sell or refinance the asset.
Self Directed IRA's and Solo 401k's are welcome and encouraged!
Best of all, we are active. We are closing our own deals. We also partner with other syndicators to provide Asset Management solutions to their deals.
The typical target hold time is 5 to 10 years with the minimum investment being typically $50,000. Some deals may require less and some transactions requiring more. We focus on managing and improving the asset to increase its value so there is a substantial profit when the asset is sold or refinanced and we are all receiving cash flow in the process. Our ideal investment is a generational deal that we can all keep forever, while maximizing the profits and passing the properties down to our heirs.
In order to be a force for change, as minorities, we need to be a force in the financial world. - Duamel Vellon
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We are Ten15 Capital, and we are innovating the world of real estate investing via apartment complexes. We create lucrative opportunities via syndication or joint venture projects.
To learn more, please go to our website: www.Ten15.co