If you see deal pitches advertising “tax depreciation” you should 🏃‍♂️

Invest in private markets and wondering if you can lose money?

✅ Yes, you can experience a total loss

✅ Yes, it's likely more prevalent in private vs public markets

❌No shortage of volunteers to manage your money.

❓Do returns compensate for the risk ❓

Nothing is stopping this train: BalckRock is under tentative agreement to purchase HPS Investment Partners, a $150B AUM private credit firm.
The untapped frontier for further growth: packaging it up in a pretty (liquid) wrapper and offering private credit to retail investors.

Happy Thanksgiving!

Today I’m thankful that I don’t have to cook a turkey (we are going to relatives for dinner)
Happy Thanksgiving! 🦃

This chart shows the impact of cap rate expansion on multifamily property valuations.
Example: A Class B property that was worth $22.2M at the peak in 2021-2022 is now worth as little as $18.1M (assuming NOI remained the same)

And new supply (not broken down by market, unfortunately)

Rent growth by market, from Yardi

Spoiler alert: one of the most boring Deal or No Deal stories I wrote up.
But if you invest in retail, you'll want to read it.
We’ll discuss why it’s important to evaluate these three things:
1. Location and market demographics.
2. Tenant quality and lease terms.
3. Financial assumptions.

There is no rational explanation to have children. I’m serious: they are expensive, life-altering, they scream for years and will ruin every nice thing you own.

It’s only after you become a parent that it all starts making sense — turn your brain off and just do it.

BA analysts showing incredible depth of perception

Resi brokers be like:
“Irreplaceable location. Own a piece of Seattle history”

Interest coverage ratio shows how easily a company can covers its debt obligations - the higher the better.

This is one of the metrics we look at when analyzing private credit funds.

In today’s article, we discuss the outlier on the left - $KBDC

I do like a good visual.

One shortcoming of showing this in the format presented is the relative scale of two circles: it’s not easily discernible, and makes it hard to tell that there is a staggering $1.7 trillion deficit

To all you haters of baggy pants:

Today I was mistaken for an undergrad student by 2 freshmen doing a class project on college campus.

Why? I was wearing baggy jeans and generally looked like a homeless person.

I graduated ~20 yrs ago.

This is called positive reinforcement

Industrial CRE report: we are starting to inch toward equilibrium

What's better: distribution yield of 10.1% or 11% for a private credit fund?

Trick question. The right answer: "It depends"

Example: these 👇are two public BDCs (business development companies), we compared data for the last twelve months (LTM).