Cap Rate Ken

A little about Ken: - Everything I know about RE I learned from HGTV’s Love It or List It - Tier 2 city enjoyer - I enjoy taking long sunset walks down beautiful land improvements - Experienced in rehab (tenant in place) and rehab (for my nose)

People reading and becoming anti-A/C because they think the US housing market issues are related to boomers not downsizing

@constans @katewillett She should google the history of the RAD program

@katewillett The public housing will literally be demolished without an injection of capital available via section 8 because there’s no money to maintain it

Like “it took Nixon to go to China” it takes a socialist Mayor to privatize and demolish New York’s remaining public housing stock.

@resetbasis loves the fee-bros

It’s unrealistic, but take away affiliate fees from new GPs and you’ll see far fewer grifters get involved. You want promote? Sure, take the incentive comp. But the fees+promote create a “you lose, I win; you win, I win bigger” scenario with little downside sponsor risk

@ChadGriffiths No worries if not, I’m sure it’ll all come out as public in the lawsuit filings

@CapRateKen I'm working an angle right now to get the full pitch deck and reporting

Here is why this Brandon Turner situation pissed me off so much. My issue isn’t that a real estate deal went bad. Anyone investing long enough will eventually make mistakes. It’s that someone with enormous influence appeared to package speculation as wisdom and unsophisticated investors trusted that influence without fully understanding the risks. Buying an apartment building at a sub 3 cap rate with adjustable rate debt was an aggressive bet that only worked if conditions stayed perfect. And not understanding rate was equally as egregious. As one person here said "Just my $.02 but if a GP is very communicative and 100% honest, and then admits that they didn’t understand how a rate cap works, that’s gonna make me feel worse than if they had just stolen the money." People weren’t just investing in a deal. They were investing in the belief that a trusted public figure was acting in their best interests and applying prudent risk management. Influence carries responsibility. When you build a massive audience teaching people how to invest, you should be held to a higher standard than “sometimes deals don’t work out.” There are great GPs out there who are great operators, but perhaps not great promoters. Figure out who you want to invest in because you'll rarely find a GP who is both. Ultimately there are 2 things which I hope resonate long after the dust settles on this: 1. A LP is risking 100% of their capital. This needs to be emphasized to every single investor, especially the ones who may not have the financial savvy of more experienced investors 2. It's very, very difficult - if not outright impossible (unless you're a guru/grifter) to get rich quick in real estate. It is a long, patient journey which involves fully understanding your downside risk. And to all the grifter/gurus here who are either defending or downplaying this reckless destruction of 15M of investor capital: Do better. Stop treating catastrophic losses like they’re just part of the content cycle. Real people trusted these operators with years of savings, retirement capital and financial security. That deserves accountability, not spin. And keep the memes coming (one more in the comments).

@Hazeludw Airconditiono Vespucci

gun to your head name an italian

@devahaz + the availability of A/C in Europe

Ok is today going to be a food, politics, dating, tipping, or airplane seating day on here?

@Bkclaims Shooters shoot

Sorry but for real?

@jonbrooks @sunnyright *laughs in real estate professional status*

@sunnyright I dont understand why you can only write off $3k in losses each year.

If you tax my unrealized capital gains, do I get a refund when those unrealized gains turn into realized losses?

@Gryffix A tornado has an infinitesimal chance of affecting one American in their entire lifetime yet millions of Europeans whine about heat waves like clockwork every 365 days but do nothing about it

Americans complain about tornadoes every year but will rebuild their cardboard houses in the exact same spot

@MonarchFiggie So it’s always been hot over there, you guys just love to complain about it annually but do nothing to solve it

I still remember the childhood days when 31°C meant you've reached peak summer temperatures and it will slowly start to drop over the next few weeks. Now we're basically living in a steam cooker for 3ish months

@LunarPledge If you’re going to appropriate my culture, at least get it right It’s “y’all” the apostrophe replaces letters in the word ‘you’ My god, you used to be the land of intellectuals like Locke, Voltaire, and Kant, what happened

why are americans so surprised a lot of europeans don't have ac ya'll do realise these kinds of temps are like. not supposed to be normal for us right. right????

@slumlordmilns No concern for the paper wasp nest huh

Tenant had the balls to bother me today: “Mr. Slumlord, the roofs caving in. Please fix it. I need to keep my children safe.” You think I care if the roof caves in on your children? You must’ve mistaken me for Mr. Landlord. Now wheres that rent check?

@constans I bet the smell goes crazy in there

Imagine being a member of the Park Slope Food Coop and wasting 17 years of your life “organizing” to stop buying groceries from Israel.

@jasonc_nc For the passive income, bro

Fixed it

Europe was once the cradle of enlightened thinking and now when you tell them to get a fan for the heat they keep complaining about they just look at you like this

If he had a competent general counsel or CCO they would’ve long told him to shut up and stop tweeting, but sure, I’m sure they have a robust compliance program for “SEC law” instituted with the same rigor as their “comprehension of rate caps” program

@Industrializer I have a theory. These new guys are 2nd gen influencers. They got bit by the RE bug by infomercials and Kiyosaki spouting this stuff. They didn’t realize you aren’t supposed to only work 4 hours, it’s just a way to sell a course to a rube

This book singlehandedly created a generation of real estate sponsors who brag about how lazy they are

@oilmutt Common parlance is “we shit the bed and incinerated everyone’s capital but the GP took home egregious fees for ‘services’ and had little to no capital at stake”%

@CapRateKen What’s the $15mm as a percent lost on that deal? Still trying to learn all the lingo

Friendly reminder that “top tier” RE syndicators aren’t active on social media. They don’t have podcasts. They don’t sell courses. They don’t host galas They take their jobs as good stewards of LP capital very seriously & don’t have time for anything else

@katewillett Supply and demand how do they work

What I will say about Zohran’s YIMBYism is that it fails on its own terms. 200k apartments over a decade is not enough to lower the price at all. The number would need to be at least a million to drop it even 1%, and it’d need to happen faster.