Ep 31 - Utilizing Liberation Metrics To Predict Market Stability with Stefan Tsvetkov The Art of Winning

Stefan Tsvetkov is a former financial engineer (Columbia MSFE) managing a $90 billion derivatives portfolio jointly with colleagues. Multifamily investor across several strategies and real estate analytics speaker, having published own metrics in the field. He is a managing partner at Pepela Capital, a real estate investment firm, and the founder of Envvy Analytics, an investor-geared real estate analytics system. He is an Organizer of Finance Meets Real Estate webinar series. He explains that when you invest as a private investor, your focus is different than when you are a syndicator. He believes that if someone wants cash flow per se, they can build a two and a half million dollar portfolio with the cash flow of a 20 million dollar commercial multifamily portfolio by pricing for up to four units. He discusses how advantageous it can be to purchase smaller deals in commercial real estate in order to maximize cash flow and equity gain, rather than chasing after larger cash flow opportunities in the multifamily market.



[00:01 - 06:12] Who is Stefan Tsvetkov? 
Stefan discusses how he got into real estate investing, how to invest, managing $90 billion in a portfolio, and now into multifamily private investing  
[06:13 - 11:54] Cash Flow Maximization in Commercial Real Estate
Cash flow is not the only measure of success in real estate investing. Equity gain and long-term profitability are also important considerations Small deals can be more profitable than large ones when it comes to cash flow Commercial real estate is more profitable than residential when it comes to equity and long-term profitability He discusses strategies of buying property to increase its value and then selling it within two years for a profit Value-based analysis for commercial real estate is based on net operating income (NOI)  
[11:55 - 31:19] Utilizing Liberation Metrics To Predict Market Stability
Real estate is a long-term investment It’s important to have a sound financial plan in place to protect yourself from market fluctuations What is an overvalued real estate? Liberation metrics can be used to help investors gauge the health of a market How the real estate market has shifted  
[31:20 – 01:08:28] Closing Segment
If somebody gave you a million dollars tomorrow, what would you do with it? He would put in commercial real estates What inspires you to do what you do now? He wants to be a good investor and he wants to not only make money the way he likes but also enjoy What are your biggest resources for a lot of the data? He gets his data from governmental data  

Connect with Stefan!
Website: https://www.realtyquant.com/
LinkedIn: Stefan Tsvetkov
 
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Key Quotes

“If I don't have the funds by myself or with a partner, then I would syndicate them. — Stefan Tsvetkov
 
“You want to not only make money, but you want to make money in the way that you like and enjoy.” – Stefan Tsvetkov