The Philosophical Investor looks at economic indicators and real estate values of the past.
The motivation for investing in real estate income property varies greatly between individuals, institutions and private investors. Economic factors play a large role in the preferred investment vehicle each type of investor chooses. Jason’s guest, writer of The Philosophical Investor and President of CWS Capital, Gary Carmell, shares with us why he prefers variable rate financing for large, upper scale apartment complexes. He also details chapters of his book and explains how he used past real estate values and current economic indicators to reach his conclusions.
Key Takeaways:
[3:40] Describing a Philosophical Investor
[6:38] Taking a step back to respond instead of react
[8:10] During a ‘Munger moment’ you go for the jugular
[9:45] People will rebuild their credit through renting
[13:20] The Philosophical Investor looks at indicators and real estate values of the past
[17:23] If rents are below replacements’ cost you have hedged your risks
[20:17] Long-term views of institutional investors are more risk/reward
[23:25] Positive characteristics of mobility and flexibility
[28:05] Future global economic prediction
[30:56] Taking interest income out of the economy
[33:45] Contact information for Gary Carmell
[35:25] A shareholder economy creates insecure growth
[37:09] Borrowing by way of the variable rate loan is not for everybody
Mentions:
Tweetables:
“A shareholder economy creates insecure growth and promotes longer rental commitments.”
“Real estate investors with leverage can hit a home-run in an inflationary environment.”
“The economy will be built on mobility and flexibility, which means more people renting.”