Mike shares his compelling personal journey of growing up in the former Soviet Union and immigrating to the U.S., offering a vital perspective on the dangers of socialism and communism as these terms resurface in modern politics. He also unveils his "three rules" for finding and underwriting great deals in the current volatile market, explaining how he targets positive spreads and deep discounts on construction costs.

🔑 Key Takeaways:

✅ The Three Rules for "Great Deals": Today, Mike focuses on deals that offer:

➜ A 2% positive spread between the cap rate and the financing interest rate.

➜ A 50% or better discount to the reconstruction cost (targeting existing builds).

➜ A 20% to 40% discount off the peak market price.

✅ Socialism vs. Capitalism: Having lived in the former Soviet Union, Mike provides a stark warning against socialism, viewing it as a system that ultimately leads to corruption, empty shelves, and a loss of freedom. He stresses that while concepts to help the needy are valid, the system itself is flawed.

✅ The Fed's Flawed Approach: Mike agrees that the Fed is "always late" and operates with a flawed model, reacting to old data rather than driving decisions with a forward outlook. He suggests their delayed and aggressive rate hikes "shocked the system" and were potentially political.

✅ The Investment Opportunity: The confluence of a complacent stock market (heavy in the MAG 7) and a beaten-up commercial real estate market creates phenomenal risk-adjusted opportunities for buyers who can find motivated sellers and "buy right".

Question for the Audience: Mike describes a real-life $79k/door deal with a 9-cap and 7% financing. What is the single most important action you are taking right now to position yourself to find and close deals with this kind of massive dislocation?

We're here to help create multifamily entrepreneurs... Here's how: Brand New? Start Here: https://jakeandgino.mykajabi.com/free-wheelbarrowprofits Want To Get Into Multifamily Real Estate Or Scale Your Current Portfolio Faster? Apply to join our PREMIER MULTIFAMILY INVESTING COMMUNITY & MENTORSHIP PROGRAM. (*Note: Our community is not for beginner investors) 👉https://jakeandgino.com/apply About Jake & Gino Jake & Gino are multifamily investors, operators, and mentors who have created a vertically integrated real estate company. They control over $250M in assets under management. They have created the Jake & Gino Premier Multifamily Community to teach others a simple three-step framework for investing in multifamily real estate. Connect with Jake & Gino on the social media platform you are most active on: https://jakeandgino.com/link-tree/

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.