When deciding who to invest with, experience is what matters most, starting with the number of deals someone has done. Forty percent of Multifamily operators have done fewer than five full cycle deals. Like anything else, Real Estate takes years, even decades, to master. Elijah Brown, Founder of GoldHawk Capital, has first-hand experience operating multifamily and leverages this experience to help him identify other experienced and proven sponsors for others to invest in. Once he finds a great deal, he negotiates favorable terms for himself and his investors. Unklike in the past few years, great deals are starting to appear.

Alternative assets are getting a greater share of investor allocations as they seek higher yields and less volatility. Pension funds, endowments and other large institutions are directing more dollars to these assets in order to increase overall yields in their portfolios and to hit mandated returns. Kim Flynn, President of XA Investments, specializes in Private Credit interval funds, some of which generate higher than 10% yields. Kim is responsible for all product and business development activities plus the firm’s proprietary fund platform and consulting practice.

Capital is pouring into steady, cash-flowing midwestern markets. Investors appreciate the predictable, steady growth and performance of these markets with affordable entry points. This applies especially to supply constrained infill industrial markets with big tenant demand and consequent high occupancy rates. Geoff Stuhr, Principal at Smart Asset Capital, specializes in Class B infill industrial properties in Southeast Wisconsin. Geoff only buys positive leverage, cash flowing properties that have value-add components that allow for enhanced cash flow and appreciation of the assets.

An interesting asset class that lends itself to significant value creation through entrepreneurialism and creativity is boutique hotels. Each property is different, so there’s intrinsic inefficiency. Many of these properties are also owned by baby boomers who have no succession plans and have not maximized their value over the years. Unlike branded hotels, there’s more opportunity to create special guest experiences that ultimately enhance revenue and generate long-term loyalty. Tom Bono, Managing Partner at Bono Capital Group, started out with AirBnb’s, and is now in contract to acquire his first boutique hotel in the Hamptons, a market he knows well.

Although it may seem like public companies such as Exxon and Chevron generate the lion share of our domestic oil production, they only produce roughly 30%. The other 70% is produced by smaller to mid-size companies. Many of these enterprises raise money via syndications from Private Equity, family offices, and High Net worth individuals. Depending on the size of the project, investment minimums can be as low as $25,000-$100,000 and have the potential to generate returns that far exceed those of other alternative asset classes. Michael Tanner, Co-founder and Managing Director at Sandstone Group, provides financial consulting and Asset Management for Oil and Gas and Energy clients.

It’s no secret that AI will revolutionize the world. Elon Musk thinks computers will overtake humanity as the collective intelligence of AI exceeds that of the collective intelligence of humanity. In the short and immediate term, the truth is probably more muted and will take longer than many expect. Thus far, most companies that have tried to integrate Applied AI technology into their businesses have not been successful and have replaced relatively few employees.  Ben Tasker, a recognized leader in AI education and workforce transformation, is helping thousands of employees upskill and reskill in the international workforce to become data and AI fluent.

Although multifamily is facing major headwinds with operators who took on floating rate debt combined with oversupply and unprecedented expense increases, this is not the whole story. Some multifamily investors who took on less risk and are better and smarter operators are doing quite well. Michael Pouliot, Founder of Carbon Real Estate Investments, has built a 3000-unit portfolio of 1970s and 80s workforce housing in the Southeast in great school districts with higher income, reliable tenants. Carbon Real Estate Investments is a fully integrated company that manages all operational aspects of the business in-house.

Investing in private market offerings outside of public stocks or funds can offer diversification and better returns, but these vehicles are often inaccessible to retail investors. There tend to be high minimums and restricted access to these opportunities. To provide this access, a number of investor organizations exist that pool their member’s resources to meet investor minimums and provide access. One of these organizations is Long Angle Management. Matt Shechtman, CEO at Long Angle Management, has vast experience operating and investing in private companies. Long Angle offers High Net Worth members curated investment opportunities, peer insights, education and networking.

Industrial properties were at 80% occupancy and selling at 5 cap rates pre-pandemic. Now, they’re over 90% occupied and selling at 8.5% cap rates. With interest rates most likely coming down, this represents a great opportunity to invest in industrial. Warren Buffet says never bet against America, now is a great time to invest in industrial properties. Judd Dunning, President of DWG Capital Partners, is raising a fund to acquire single tenant Sale Lease Backs from profitable companies with strong balance sheets and excellent credit. Conservative asset level underwriting, plus the diversification of a fund make this a safe investment with long-term leases and predictable returns. 

Buying at a discount is the most dependable way to make money. Suburban office is one of the few examples left where you can still find considerable value. In some markets, you can buy these properties for as little as $10/ft where it costs $200/ft to build. What’s more, you don’t have to find off-market deals, they’re listed publicly on LoopNet, Crexi, and other listing sites. As workers have moved to the suburbs and left downtown districts, they’ve chosen to work closer to home. As a result, many suburban office buildings are at 90% occupancy.  Ken Naim, founder of Beacon One Capital, has acquired cash-flowing suburban office properties and also buys industrial buildings in smaller markets.