GMB #132: From Tech Founder to Venture Capital & Real Estate Investor with Zain Jaffer

The world of real estate is full of opportunities for investors who strive to build wealth using innovative strategies. This week on Grow Money Business, we have a fascinating conversation with Zain Jaffer. Zain is a tech entrepreneur, a real estate investor, and the founder of Vungle, which was sold to Blackstone for $780 million in an all-cash transaction in 2019. Today, he invests in real estate and real estate technology businesses through both venture capital and private equity funds.

 

 

Show Notes

[02:15] Zain’s experience – Zain describes what he finds so appealing about real estate investing.

[09:58] Investment Opportunities – Zain shares what he looks for in new investment opportunities and how he assesses whether or not they are a suitable fit.

[16:54] Institutional Impacts on Real Estate – Zain and Grant discuss the argument that institutional interest in residential real estate is making it more challenging for individuals to purchase their own homes.

[22:15] PropTech Startups – Zain describes his future career goals and plans to continue investing in PropTech startups.

[26:33] More on Real Estate Investing – Zain shares some common themes he hears presented from startups seeking investments.

[34:09] Zain’s Journey – Zain outlines his professional journey, starting with the founding of Vungle, to his eventual $780 million exit.

[41:05] Cryptocurrency – Zain shares his thoughts on cryptocurrency.

 

Resources

GMB Ep #70: Real Estate Syndication With Anthony Scandariato

A real estate syndication is essentially a partnership between a set of limited partners who pool their money together to purchase a piece of real estate they cannot afford on their own. This week on Grow Money Business we have a distinguished guest who has been working on real estate syndications for quite a while. Anthony Scandariato, co-founder and managing principal of Red Knight Properties, joins us today to talk about what you need to know before investing in a real estate syndication.

 

 

Show Notes

[02:42] Introduction – What real estate syndication is, how it differs from property management, and available opportunities for investors.

[07:02] Legal Background – Rules, regulations, limitations, and liabilities associated with real estate syndicates.

[10:33] Lifecycle of Investment – The process of setting up a real estate syndication and getting into deals with investors.

[14:54] Sourcing Properties – Anthony talks about his process of finding properties, acquiring them, and preparing for business.

[20:35] Managing Properties – Anthony shares his thoughts on the ideal way to manage the properties and working with tenants to make smooth rent adjustments.

[24:02] Communication with Investors – How general partners maintain the relationship with investors in terms of cash flow, reporting, and profit-sharing.

[27:31] 1031 Exchange – Anthony shares his take on the purpose of the 1031 exchange and why it should not be repealed.

 

Resources

Discovering Multifamily Podcast – Real Estate For Medical Professionals With Grant Bledsoe

 

Connect with Anthony

Market Update: Q4 2019

Market Update: Q4 2019

Picture what you were doing on January 1st of 2019.  Maybe you were getting an early start on your fitness goals for the year.  Maybe you were up early, ready to take in some New Year’s day football.  Maybe you were in bed all day nursing a hangover.

If I were to ask you what you thought the stock market would do in 2019, what would you have said?

Would you have guessed that 2019 was the year that the 10-year bull market finally came to and end?  Would you have said you had no idea?

What I’m guessing you wouldn’t have said was that the S&P 500 would be up 30% on the year, tossing market bears aside like leftover confetti from the night before.  At least I wouldn’t have.

Yet here we are, about one year later, and that’s exactly what happened.  And not only did the S&P climb 30% on the year, it did so in extremely steady fashion.  This was true in the fourth quarter of 2019, just as it was in the first three.

Could this be the year that the bull market wanes?  Read on for more details and background.

 

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How to Evaluate Real Estate Investments

How to Evaluate a Real Estate Investment

The concept of acquiring rental properties as a means to build passive income has become exceptionally popular recently.  In fact, it’s difficult to peruse the internet for content on personal finance without bumping into videos/podcasts/blogs/courses on how to build passive income through real estate investing.

My take on real estate investing is that it can indeed be a wonderful complement to your investment portfolio.  But the conditions need to be just right.  And given how quickly housing prices have risen since the depths of the financial crisis in 2009, the circumstances today are rarely compelling.

As you can imagine, this is a conversation I have with clients frequently.  Some have an existing property we need to evaluate.  Others fall in love with the idea of putting in sweat equity now & building an empire of properties that kick off income over time.  This sounds nice in theory, but in my experience rarely pencils out.  (At least of the opportunities I’ve seen recently in California & Oregon).

This post will explore how to evaluate real estate investing opportunities.  We’ll cover cash flow, return on investment, and go through a real life scenario of a property I pulled from Zillow.com.

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