Dia and I celebrated our 7-year wedding anniversary with Tacos and FroYo, lol. Super classy.
Can't believe how long it's been since we threw that rager down in Mexico.
Livin' La Vida Luna y Luca
Luna casts a vision while Luca crunches numbers to ensure it's possible.
Week of 10/10:
I did an interview on The Resilient REI Podcast this week (currently ranked #30 in the Real Estate category on iTunes).
I'll let you know when the episode gets published.
Teaser: We talked about why the BRRRR Method isn't all it's cracked up to be.
Doing the interview was really fun. It makes me want to start my own podcast.
That might be the next content strategy I test. Let's see. 😜
After we finished recording, the host and I got to talking about podcasting as a business model.
As of right now, all of his sponsorship contracts are performance-based.
Meaning he only gets paid if he can get his audience to convert on the sponsor's offer.
Seems like a super low-risk way for someone to start a niche business.
Now I'll be spending the next week or two trying to think up another business idea that I can advertise through his podcast before he gets so big he's able to charge per download.
New Construction Project Update
It was a slow week in terms of construction progress.
I did, however, hire a designer and reconcile our books.
The designer will select all the finishes, order everything, and supervise the installation. That's about 3-400 decisions my builder and I won't have to make. 😅
The current P&L is much less exciting.
We're $160K in the hole and all we have to show for it is...a hole (in the ground).
We're still waiting for our foundation walls to get dropped in.
🤞🏽 Hopefully, they come in this week.
I invested (as a Limited Partner) in a 2008-build, 134,984-square-foot, single-tenant, Class B industrial property located 30 miles north of Houston.
The building is currently vacant. The previous owner outgrew the space and needed to sell to fund their expansion.
In an effort to reduce risk, the building is being purchased at roughly 40% below replacement cost with a 60% LTV ratio.
This should counteract the risk of cap rate expansion and the potential drop in demand for leasing this type of space.
This is essentially a fix-and-flip deal on steroids. We should be in and out within 36 months. The plan after selling is to do a 1031-exchange into a larger asset.
This is my first foray into Industrial space. Let's see how we fare.