we had the privilege of hosting an insightful webinar with Jeremy Roll, a full-time passive cash flow investor with over 20 years of real estate investing experience. For those who may have missed it, we’d like to share some of the key takeaways from Jeremy’s presentation.
Jeremy began by providing a brief overview of his background, emphasizing that he is a lower-risk, long-term passive cash flow investor. He then moved on to discuss why he is currently focused on protecting his equity in this uncertain economic climate.
A quick recap of the past few years:
– 2020 saw a crash in the stock market, quickly propped up by record money printing and other pandemic measures.
– 2021 was a year of tailwinds, with record money printing and quantitative easing leading to increased asset prices.
– However, 2022 was a year of headwinds, with stimulus measures ending, the Federal Reserve raising interest rates, and the potential for increased cap rates and reduced asset prices.
Looking forward to 2023, Jeremy anticipates a year of asset price reductions and a possible recession. He noted that inflation is a major challenge right now, with real inflation exceeding 10%, which could significantly impact real estate investments.
To protect equity amid these challenges, Jeremy is focusing on three specific types of investments:
1. Unique investments with unusual pricing or significant built-in equity upfront.
2. Investments in which asset price decreases aren’t a concern.
3. Short-term, low-risk investments instead of keeping money in cash due to inflation.
Examples of such investments include multifamily properties with tax abatement, depreciating assets like ATMs, and US Treasuries.
In conclusion, Jeremy stressed the importance of not being stagnant in these uncertain times. Despite the potential risks, investors should continue to deploy their capital to avoid falling behind due to inflation. He encouraged each of us to devise an investment strategy that fits not only the current investing environment but also our personal comfort level.
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