Some people leave their money in banks because they think investing is too risky…

Of course, all investments come with risk… but investing is about generating a return that is favorable relative to the risk you are taking on.

While you can earn some interest on your deposits, the banks earn much more interest by investing the money you deposited while you still take on the risk of their investment.

Banks can offer you the advantage of liquidity, but if you know you don’t need to withdraw your money for a certain amount of time, you should look for a safe way to grow your money that more than compensates you for the risk you might bear.

Real estate is the choice of a large number of wealthy individuals because investment properties generate a stable flow of income, hedge the effects of inflation, and give you the certainty that your investment won’t vanish into thin air!

However, many people assume real estate investing is not available to them because they do not have the time or expertise to find and manage deals, which is why I’m excited to have had an opportunity to interview, CEO of Praxis Capital, Brian Burke!

Brian is the author of “The Hands-off Investor” which is the preeminent guide for passive investing in private real estate deals in which he gives you all the tools you need to find and evaluate reliable real estate investment managers who will invest on your behalf.

I highly recommend checking out Brian’s book and listening to today’s episode if you want safe ways to protect and grow your wealth without sacrificing your time or peace of mind!

Keep Making Milestones,

Ben Malech

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If you want to learn more about Brian, you can find him at:

Book: www.BiggerPockets.com/SyndicationBook

www.PraxCap.com

www.linkedin.com/in/praxiscapital

https://www.facebook.com/praxcap/

To learn more about Ben, connect with him through:

Ben’s Website: https://benmalech.com/

Ben’s LinkedIn: https://www.linkedin.com/in/benjamin-malech/

Ben’s email: [email protected]

Resources Mentioned:

Rich Dad, Poor Dad - Robert Kyosaki

It’s only been 2 months, but 2023 has been a tumultuous year for real estate…

But when things change, those who adapt quickly will win.

In today’s episode, I welcome my friend Jeffrey Donis onto the show for the second time to discuss the lessons he’s learned from acquiring 150+ units last year and how he and his partners are pivoting their strategy in 2023.

Currently, transaction volume is very low because it's hard for buyers to find deals that pencil out. This has put a lot of them on the sidelines.

However, Jeffrey’s philosophy is never to stop looking for deals because if he finds one now, he’ll have less competition and buy at a better price. Furthermore, he’s adjusted his strategy to ensure he targets deals with a size and location that suits his competitive advantage.

I encourage anyone who’s interested to tune in to hear Jeffrey and me discuss how the current interest rates and market changes affect real estate metrics and investor behavior!

Keep Making Milestones,

Ben Malech

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If you want to learn more about Jeffrey, you can find him at:

https://www.donisinvestmentgroup.com/

To learn more about Ben, connect with him through:

Ben’s Website: https://benmalech.com/

Ben’s LinkedIn: https://www.linkedin.com/in/benjamin-malech/

Ben’s email: [email protected]

Resources Mentioned:

Shoe Dog - Phil Knight

Today’s guest owns 5 companies…

It’s definitely a lot of work, but I’m impressed that he’s even able to do it.

In today’s episode, Bill Allen tells his story of doing his first fix and flip as an active-duty Navy pilot to doing hundreds per year while also investing, lending, farming, and teaching others how to do it all.

However, he didn’t start all of these companies at the same time…

For Bill, it all comes down to having the right people and processes.

Once he is able to get a business off the ground, he hires a COO to run the day-to-day while he shifts the majority of his focus to his new venture.

However, the key to Bill’s success is that, from the beginning, he wasn’t afraid to follow his passion, even when it was difficult.

His advice to me is to get super clear with my goals, and I’ll be able to accomplish more than I can imagine…

Tune in to today’s episode to hear Bill’s story and learn from his many lessons along the way!

Keep Making Milestones,

Ben Malech

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If you want to learn more about Bill, you can find him at:

https://www.youtube.com/@BillAllenREI

https://www.youtube.com/@7FigureFlipping

To learn more about Ben, connect with him through:

Ben’s Website: https://benmalech.com/

Ben’s LinkedIn: https://www.linkedin.com/in/benjamin-malech/

Ben’s email: [email protected]

Resources Mentioned:

Extreme Ownership - Jocko Willink and Leif Babin

Expert Secrets - Russell Brunson

The E-Myth Revisited - Michael E. Gerber

Once you decide to invest in real estate, the natural next question is, “Where?”

Most people agree that location is the most important component of a property, but picking a location is by no means easy…

However, I’d like to shout out to Neal Bawa for building an impressive large data model that accurately predicts which U.S. cities are the best to invest in and has been kind enough to share his findings with us!

He has identified the 5 metrics that are most directly correlated with the returns on investment of real estate deals in any given city, which are as follows:

1. Population Growth

2. Income Growth

3. Avg. Home/Condo Value Growth

4. Crime Reduction

5. Job Growth

In today's episode, I go into detail on each of the 5 metrics and let you know where to find all of the data!

Keep Making Milestones,

Ben Malech

P.S. I encourage anyone who’s interested in learning more to check out Neal’s Location Magic Workshop for free at MultifamilyU!

Resources Mentioned:

https://multifamilyu.com/courses/location-magic-ecourse

https://www.city-data.com/

https://www.deptofnumbers.com/

https://grocapitus.com/neal-bawa/

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To learn more about Ben, connect with him through:

Ben’s Website: https://benmalech.com/

Ben’s LinkedIn: https://www.linkedin.com/in/benjamin-malech/h

Ben’s email: [email protected]

Can you Guess the City?

It's the 5th fast-growing population of big cities in the U.S. over the last 5 years,

2nd Highest Income Growth over the last year,

and was named ULI’s best place to invest in real estate in 2023…

If you guessed Nashville, TN, you’re right!

As a young person who wants to invest in real estate, it’s important to consider not only what a city looks like now but what are its future growth prospects.

Nashville has an incredible growth story.

If you take into account all of the real developments that are currently proposed and in progress, the entire skyline of the city will look completely different in 5 years.

Today, I’ve invited Tyler Cauble on the show to discuss how Nashville has grown since he began developing real estate at the age of 21 and what the future of the city will look like!

As someone who plans to be in the industry for a long time, it's always a pleasure to get an inside perspective from market experts, and Tyler is certainly an expert on Nashville, so tune in to hear about his exciting journey and how he’s contributing to the city’s growth!

Keep Making Milestones,

Ben Malech

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If you want to learn more about Tyler, you can find him at:

Instagram:

Tyler’s YouTube Channel: https://www.youtube.com/c/TylerCauble?app=desktop

HomePage: https://www.tylercauble.com/

LinkedIn: https://www.linkedin.com/in/tylercauble/

To learn more about Ben, connect with him through:

Ben’s Website: https://benmalech.com/

Ben’s LinkedIn: https://www.linkedin.com/in/benjamin-malech/h

Ben’s email: [email protected]

Resources Mentioned:

I want to tell you about one of the things I love about real estate…

In the real estate market, Win/Win Scenarios are common…

Most people consider the Stock market to be a Zero-Sum Game because, for every winner, there is a loser.

If a stock goes up in value, the buyer wins, and the seller loses, and vice versa.

However, in real estate, a seller can sell a property for a fair market value, and the buyer can force appreciation by making improvements to the property or operations.

This could be a Win/Win because the seller can realize the increase in value that occurred over their hold period, and the buyer can make improvements the increase the value of their asset!

Although the seller knows that their property could be worth more if they add value to it, they might not be interested, willing, or able to spend the time and money.

Also, the tenants of the building win becasue they get to enjoy the improvements!

If you are interested, here’s a short video where I break down this concept in more detail!

Keep Making Milestones,

Ben Malech

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Ben’s Website: https://benmalech.com/

Ben’s LinkedIn: https://www.linkedin.com/in/benjamin-malech/h

Ben’s email: [email protected]

In ECON 101, we learn if Demand stays constant and Supply decreases, then Price goes up. During COVID, Supply was constricted, hence all the Price Inflation.

Now, Supply is back online, and we had deflation of -0.1% in December, so does that mean The Fed will change its policy soon?

Of course, that’s a complicated question…

Fortunately, renowned economist, Dr. Peter Linneman, is willing to help us sort this out!

Dr. Linneman is a Principal of Linneman Associates, real estate investor, strategic consultant, and Emeritus Professor at the Wharton School of Business, and on today’s episode, we discuss inflation, interest rates, and everything else affecting the economy and investments!

The Fed seems to want to continue restricting Demand through increased unemployment by increasing interest rates.

However, given the relative strength of the consumer in the current economy and the current undersupply of labor, Dr. Linneman hopes The Fed will not continue to raise rates for very much longer, because, with inflation already beginning to come down, holding interest rates high for too long will likely end up doing more harm than good.

Additionally, last year the population grew by 4.7M, but only 1.2M jobs were created, so it seems counterintuitive to pursue policies that discourage new job formation given that results in wasted human capital.

On the flip side, some argue that the threat posed by the possibility that the slowdown in inflation is temporary means that The Fed should maintain its policy. In other words, the threat of undercorrecting is great than the threat of overcorrecting.

What do you all think?

Keep Making Milestones,

Ben Malech

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If you want to learn more about Dr. Linneman, you can find him at:

https://www.linnemanassociates.com/

To learn more about Ben, connect with him through:

Ben’s Website: https://benmalech.com/

Ben’s LinkedIn: https://www.linkedin.com/in/benjamin-malech/h

Ben’s email: [email protected]

Resources Mentioned:

The Great Age Reboot: Cracking the Longevity Code for a Younger Tomorrow - Michael Roizen, Dr. Peter Linneman

Milton Friedman - https://en.wikipedia.org/wiki/Milton_Friedman

Insurance is weird…

You’re only happy that you have to pay for it when something really bad happens.

However, the increasing impact that climate change has on the availability and price of insurance is something that I don’t hear enough real estate investors talk about…

Places like Florida and New Orleans, which have a history of hurricanes, have already begun to feel the changes in how the insurance industry perceives climate risk, but the coasts aren’t the only places that will be affected.

Polar vortexes have hit as low as Northern Texas, and we’re seeing tornadoes in places that haven’t seen one in any of our lifetimes, and if investors aren’t careful, these risks might cause a big hit to your bottom line.

Luckily, we have provident investors like B.L. Sheldon to educate us about how to prepare our real estate portfolios for the effects of climate change.

B.L. Sheldon is the Author of Fearless: Real Estate Investing in the Era of Climate Change, and in this episode, she uncovers the blindspots that all real estate owners need to consider.

No matter one’s political, religious, or personal views, there is a preponderance of evidence that climate risk poses a threat to real estate everywhere, so tune in to get ahead of the game!

Keep Making Milestones,

Ben Malech

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If you want to learn more about Brooke, you can find him at:

https://realestatetrendshark.com/about-bl-sheldon/

To learn more about Ben, connect with him through:

Ben’s Website: https://benmalech.com/

Ben’s LinkedIn: https://www.linkedin.com/in/benjamin-malech/h

Ben’s email: [email protected]

Resources Mentioned:

East of Eden - John Steinbeck

Today’s guest is none other than “The Mad Scientist of Multifamily,” and after building up a $1B+ real estate portfolio, he has an unconventional piece of advice:

Don’t Trust Your Gut…

With a background as a Silicon Valley technologist, Neal Bawa entered the world of real estate committed to using data science to drive his investment decisions.

After many years of collecting data and crafting data models, Neal has isolated the few metrics that have an outsized ability to predict which real estate markets will generate the greatest returns…

Neal is a successful PropTech & Real Estate investors and the Founder of Grocapitus & MultifamilyU, and while his investors trust him with over a billion dollars in assets, he trusts cutting edge data methodologies to ensure his investments are successful!

In today’s episode, Neal sheds light on the 5 most important metrics to consider when choosing a real estate market and explains why his models are predicting a shallow recession in 2023.

Neal is an incredible investor and communicator who shares incredibly powerful insights, so I encourage you to tune in!

Keep Making Milestones,

Ben Malech

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If you want to learn more about Neal, you can find him at:

Grocapitus: https://grocapitus.com/neal-bawa/

MultifamilyU: https://multifamilyu.com/

To learn more about Ben, connect with him through:

Ben’s Website: https://benmalech.com/

Ben’s LinkedIn: https://www.linkedin.com/in/benjamin-malech/h

Ben’s email: [email protected]

Resources Mentioned:

The Miricle Morning - Hal Elrod

Over the last 40 years, interest rates have trended down and to the right, with only a handful of periods in which The Fed raised rates.

Clearly, we are now in one of these periods, which begs the question: “How long will The Fed keep rates high?”

This is a particularly poignant question given the popularity of short-term floating-rate loans for value-add projects over the last few years.

Many of these borrowers expected to refinance these loans into fixed-rate longer-term products at their loan’s maturity, but most of them did not expect rates to rise as fast as they have over the last 6 months, which puts a lot of pressure on their deal.

If their property cannot service these higher interest payments, they may be forced to sell if they cannot find the money they need to bring to a lender to refinance at a lower loan-to-value.

In today’s episode, Founder of Raises.com, Natu Myers, and I discuss how long The Fed may continue it’s policy, what challenges this may cause to the economy, and what opportunities may arise as a result.

Obviously, nobody has a crystal ball, but we might not need one to speculate about how the next few years will play out, so tune into this fun conversation about the future of the industry!

Keep Making Milestones,

Ben Malech

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If you want to learn more about Natu, you can find him at:

https://www.linkedin.com/in/natumyers/

https://raises.com/

To learn more about Ben, connect with him through:

Ben’s Website: https://benmalech.com/

Ben’s LinkedIn: https://www.linkedin.com/in/benjamin-malech/h

Ben’s email: [email protected]

Resources Mentioned:

Thinking in Bets - Annie Duke

Principles - Ray Dalio