At Ten15 Capital, we believe that real estate is a collection of benefits, of which income is one. What I have learned from personal mentors such as Kevin Kolinski and David Iglewicz is that investors aren't always seeking income. Some are looking at wealth preservation, others the tax benefits and other very personal reasons. Knowing this allows me to get to know our equity partners on a deeper level than just a transactional relationship. We carefully craft our deals by:
Caring about people so that we may understand their unique circumstances.
Understanding the circumstances reveals the opportunity.
The opportunity defines the technique to deliver the required benefits.
I always talk about how we are MISSION DRIVEN, and that is not a cliché. Les Brown said "help others achieve their dreams and you will achieve yours." We have a hyper-focus on helping our partners achieve their dreams with wealth creation, wealth preservation and wealth GROWTH.
Real Estate is a collection of benefits.
Understanding that income is not the only benefit that investors seek when approaching a deal has allowed our team to create lasting relationships. Some of the other benefits are:
You are looking for a way to get into Real Estate.
You are looking to diversify your portfolio.
You are looking to hedge against inflation.
You are looking for tax breaks and deductions.
You are looking to protect your wealth.
You are looking for a way to get into Real Estate.
As a busy professional, spending your nights and weekends looking for rental properties is tedious. You would rather be gaming, enjoying or playing live music, working out or spending time with your friends and family. With all of your other hobbies, do you really want the headaches of being a landlord? Finding the right property to purchase is stressful, and misunderstanding cash flow killers like vacancy, property taxes, insurance and HOA dues can further take your attention away from your pursuit of happiness.
You are looking to diversify your portfolio.
Have all your eggs in the stock market basket? Aside from everyone being a genius on predicting stocks today, the truth is, the majority of investors don’t understand the stock market. We’ve had two 50% market drops in the past 20 years yet there are trillions of retirement dollars in Wall Street. According to a recent survey, most Americans are not aware that they can invest their 401k or IRA in real estate. Diversification is prudent, especially given the volatility in today’s stock market.
You are looking to hedge against inflation.
As Robert Kyosaki stated, “savers are losers.” Using a constant inflation of 3% per year, the money in your savings account is losing value every day. Retirees who live off of fixed incomes are also losing the race to inflation. Their fixed income does not adjust to the inflation constant. Borrowers on variable rates are also at risk, since variable interest rates aim to stay in front of inflation.
Ronald Reagan once said, "inflation is as bad a mugger, as frightening as an armed robber and as deadly as a hitman." It’s a hidden way to steal your money.
You are looking for tax breaks and deductions.
With the power of the cost segregation study, the IRS has provided crazy incentives to us multifamily investors in way of tax breaks. Using this in combination with Accelerated and Bonus Depreciation, I have seen $40-60k in these "paper losses" (net loss for tax purposes) per $100k investment on previous deals that I have been a part of be distributed via Year 1 Schedule K-1 document. That’s roughly 50% of your investment returned to you as a passive loss that you can use to offset other income. Always speak to your attorney about tax items. Keep in mind, every deal is different!
You are looking to protect your wealth.
On the previous newsletter, I mentioned that I have learned from personal mentors such as Kevin Kolinski and David Iglewicz is that investors aren't always seeking income. Some are looking at wealth preservation. Recently, Inc Magazine did a study to find the top 5 assets wealthy people use to preserve wealth. The number one item was what they called “exclusive real estate.” They elaborated on commercial buildings, commercial real estate. It is not single family residences or the residential sector, it is the commercial real estate sector. When I dug deeper into this, multifamily real estate outperformed every other commercial niche, such as hotels, retail and office spaces.
Solution: Multifamily Investments
Investing in multifamily with the right team with the right business plan fulfills every single one of these concerns. I love multifamily because of this, learn and understand everyone’s individual and nuanced reasons for wanting to invest in real estate.
We carefully craft our deals by:
Caring about other people. This simply means taking an interest in them. This allows me to understand their unique circumstances.
By understanding the circumstances of the investor, I can recognize the opportunity present.
Once I understand the the opportunity, I can apply the correct technique to deliver the solution. This could be a syndication, a joint venture and so on and so forth.
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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
