Keith breaks down portfolio diversification across three dimensions — strategy, geography, and asset class — and explains why most people get the order completely wrong. Then he gives his most nuanced answer yet on mid-term rentals, admitting it stumped him more than almost any question Dayton has asked.
Takeaways
- Diversify in the right order: strategy first, geography second, asset class last.
- Get excellent at one strategy, systemize and delegate it, then add the next. Don't juggle eight things from day one.
- Mid-term rentals are real and structural — but they're not a universal sweet spot. They work best when you're uniquely positioned for a specific tenant niche.
- Balance diversification with optimization your entire career — add things, but cut what doesn't work.
Chapters
- 00:00 Introduction
- 00:48 Philosophy on Portfolio Diversification
- 05:26 Importance of Deal Structure
- 13:17 Geographical Diversification
- 18:47 Midterm Rentals: A Viable Strategy?
- 24:32 Balancing Diversification and Optimization
- 31:04 Outro
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