A meta thread of all my threads packed with timeless insights and actionable ideas on real estate investing. 🧵

Blown away by how fast AI is moving. We’re launching a push to get better premarket leads and need a site where motivated sellers can fill out their info. Options were, -Hire a designer developer for a few thousand bucks Spend 2–3 weeks building it manually - Use Squarespace, Wix etc, but more time-consuming. Instead, I deep researched ChatGPT for AI website builders. Got a few options. Fed them an example site—and in under a minute, the new site was ready that I could edit any way I liked. 15 minutes total, start to finish. A couple of years ago, this would've taken weeks and thousands. There’s never been a better time to be an entrepreneur.

It's been hard to find "good" deals—high rates, too much competition on-market. In the current climate, the best play is forcing value into a property instead of chasing overpriced deals. So we adapted. Flipping isn’t the highest return on effort or risk, but with a team of ex-consultants, we think we can crack an autonomous system especially with AI agents and integration, an assembly line that runs itself over time. May be that is over confidence but at least that's the hypothesis. So for a POC, we closed a small fund in Jan, bought our first flip already, and now we’re fully in it. Flipping also sharpens our off-market skills, gives us hands-on experience with rehab and dispo, and so builds optionality for the future. Every deal will stacks skills, every skill creates options. Long-term, we’re laying the groundwork for a vertically integrated operation with multiple core competencies. So when the market shifts, we’ll have a toolbox to adjust and capitalize. By the Numbers Strategy: Flip Bought All Cash to reduce holding risk Property Type: Single-family home Bedrooms: 3 → 4 after renovation Bathrooms: 1.5 → 2.5 after renovation Purchase Price: $262.5K Est. Current Valuation: $341K Est. Renovation Cost: $80K Est. Sale Price: $410K (conservative) Est. Holding Period: 6 months First time doing it, so will be sharing everything—the wins, mistakes, and lessons in between. Stay tuned for more updates!

Overall distress by property types. Sent this in my newsletter earlier, but a quick TLDR, CMBS-financed property distress hit 11.5% in January, the fifth straight record high, rising 90 basis points from December. Multifamily distress surged to 12.9%, a sharp increase from 2.6% a year ago. Office remains the most distressed sector at 17.7%, though the rate of increase has slowed. Class A offices are holding up, while Class B and C properties continue struggling. Self-storage distress spiked to 14.2%, largely due to a $2.08 billion loan tied to 16 Chelsea, NYC properties missing its maturity payment. Industrial ftw......for now at least.

“There is nothing so useless as doing efficiently that which should not be done at all.” - Peter Drucker

Just did a rent audit on part of our portfolio and found an extra $5K/month—just by checking current rents against market rates. Takes almost no effort Can be done every 6 months Way better leverage than squeezing expenses The easiest thing to do for any operator. P.S - Market rents are based on AVMs but still.

Last year, we stopped acquiring and brought property management in-house. 3rd party PMs were a nightmare—broken incentives; they made money when we lost money. So we offshored ops and hired a director from BCG with consulting chops, and the results? Massive turnaround. Now we have optionality—if we want long-term holds, we’ve got a killer management team in place. Just look at this one metric of economic occupancy. Economic Occupancy %=(Actual Collected Rent/Gross Potential Rent​)×100 Only wish we did this sooner!

Quote of the day: “Wealth consists not in having great possessions, but in having few wants.”

Warren Buffett sold another $981 Million of Bank of America giving him a total of 278 BILLION in cash! Must be getting ready for something… 🤔

It’s almost impossible to over-communicate with investors.

Spent this weekend looking at some markets. Syracuse is in a league of its own. Logged annual rent growth of 6.7% as of May, behind only Midland/Odessa. For context - Before the pandemic (in the 2015-2019 time frame), rent growth in Syracuse averaged only 2.4% annually.

Early-stage companies don't have the luxury of bad hires. Agree?

US Home Flipping Trends 👀

Makes all the work totally worth it. If you like sign up for Zero Flux, link in bio.

High in Himalayas. Literally.

One day you will wake up and there won't be any more time to do the things you've always wanted. Do it now. - Paulo Coelho