19 min
Ep. 102 - Risk Mitigation: Criteria for Investing The Art of Winning
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- Entrepreneurship
Are you looking to invest in real estate passively? In today's The Art of Winning episode, our host Ashton Levarek explores the importance of doing your due diligence when considering a real estate investment. We'll discuss topics such as assessing a team's past experience and track record, understanding their investment strategy and goals, understanding liquidity and cash flow, and evaluating risk management practices. In addition, we'll look at fee structures and alignment with private equity firms, the importance of transparent communication throughout the process, and understanding the internal rate of return, average annual return, preferred return, and cash on cash return. Lastly, we'll talk about staying informed by using multiple communication channels for updates on an asset's performance.
To learn more about Ashton, listeners can visit his website at Valkere Investment Group!
[00:00 - 11:02] Criteria for Partnering and Passive Investing
Evaluate the track record and experience of real estate and private equity firms, focusing on their past performance and expertise of team members. Understand the investment strategy of the firm or project and ensure alignment with your investment goals, considering factors such as property types, geographic locations, and investment timeframes. Seek financial transparency from partners and operators, promoting open communication and full disclosure to avoid any unknowns or surprises. Conduct thorough due diligence to protect your capital, looking beyond flashy branding and marketing efforts to assess a firm's true investment potential.
[11:02 - 19:54] Mitigating Risks and Maximizing Returns
Consider risk-adjusted returns and the level of risk you are comfortable with, as different asset types and investment strategies carry varying levels of risk and potential returns. Determine the liquidity of the investment, understanding when and how you can retrieve your capital, especially in projects with longer hold periods. Prioritize partnerships with firms that prioritize financial transparency, providing comprehensive data and information about the project and its performance. Build a network of experienced and credible team members who can bring expertise and credibility to your own investment ventures. Remember that as a passive investor, you are a limited partner and don't have control over the asset, emphasizing the need for trust and alignment with the project's overall strategy. Apply the criteria discussed in real estate investing but recognize that many of the principles can be applicable to other investment types as well.
Connect with Ashton!
Website: Valkere Investment Group
LinkedIn: Valkere Investment Group
Want to learn more about creating multiple income streams, wealth protection, financial freedom, or real estate investing? Join our investor club, check out our blog, get our free ebook on investing, or join us for our monthly Real Estate Investing Made Simple virtual meetup. Take the first to your wins in life and head on to http://www.valkeregroup.com.
Leave a REVIEW and SHARE this episode with someone who wants to unlock the secrets to success. Listen to other episodes on Apple, Spotify, Libsyn, or wherever you get your podcasts!
Key Quotes
" Staying informed is essential for the passive investor." –Ashton Levarek.
Are you looking to invest in real estate passively? In today's The Art of Winning episode, our host Ashton Levarek explores the importance of doing your due diligence when considering a real estate investment. We'll discuss topics such as assessing a team's past experience and track record, understanding their investment strategy and goals, understanding liquidity and cash flow, and evaluating risk management practices. In addition, we'll look at fee structures and alignment with private equity firms, the importance of transparent communication throughout the process, and understanding the internal rate of return, average annual return, preferred return, and cash on cash return. Lastly, we'll talk about staying informed by using multiple communication channels for updates on an asset's performance.
To learn more about Ashton, listeners can visit his website at Valkere Investment Group!
[00:00 - 11:02] Criteria for Partnering and Passive Investing
Evaluate the track record and experience of real estate and private equity firms, focusing on their past performance and expertise of team members. Understand the investment strategy of the firm or project and ensure alignment with your investment goals, considering factors such as property types, geographic locations, and investment timeframes. Seek financial transparency from partners and operators, promoting open communication and full disclosure to avoid any unknowns or surprises. Conduct thorough due diligence to protect your capital, looking beyond flashy branding and marketing efforts to assess a firm's true investment potential.
[11:02 - 19:54] Mitigating Risks and Maximizing Returns
Consider risk-adjusted returns and the level of risk you are comfortable with, as different asset types and investment strategies carry varying levels of risk and potential returns. Determine the liquidity of the investment, understanding when and how you can retrieve your capital, especially in projects with longer hold periods. Prioritize partnerships with firms that prioritize financial transparency, providing comprehensive data and information about the project and its performance. Build a network of experienced and credible team members who can bring expertise and credibility to your own investment ventures. Remember that as a passive investor, you are a limited partner and don't have control over the asset, emphasizing the need for trust and alignment with the project's overall strategy. Apply the criteria discussed in real estate investing but recognize that many of the principles can be applicable to other investment types as well.
Connect with Ashton!
Website: Valkere Investment Group
LinkedIn: Valkere Investment Group
Want to learn more about creating multiple income streams, wealth protection, financial freedom, or real estate investing? Join our investor club, check out our blog, get our free ebook on investing, or join us for our monthly Real Estate Investing Made Simple virtual meetup. Take the first to your wins in life and head on to http://www.valkeregroup.com.
Leave a REVIEW and SHARE this episode with someone who wants to unlock the secrets to success. Listen to other episodes on Apple, Spotify, Libsyn, or wherever you get your podcasts!
Key Quotes
" Staying informed is essential for the passive investor." –Ashton Levarek.
19 min