Attract ALL investors to Your New Fund With THIS 1 Asset Class – Natu Myers of Raises.com
Natu Myers is back with another video and in this video, I’m going to talk about why real estate is the best asset class for starting a fund. Real estate is one of the most reputable and strong wealth drivers of all time. There are many reasons why real estate funds or acquisitions are one of the best options, but I will keep it simple. People might think real estate is boring, but it is simple and gets results. It is also the easiest way to raise money. I’ll explain why this is the case. Firstly, Charlie Munger, the business partner of Warren Buffet, once said that he used to say a lot of things in his speeches. (how to attract an investor)
He gave many speeches and collected a lot of them. One of the things he said that remains strong and firm is that if you want to find out what’s true or what to do, you have to look at what has existed for the longest period of time. Charlie Munger and Warren Buffet were known for studying many different things, not just investing. They studied chemistry, physics, and arts to improve their craft. Charlie Munger was a big fan of physics and engineering, even though it may not seem related to investing at first glance. He was drawn to understanding physics because the laws of physics have existed since the universe was formed. (how to attract an investor)
The laws of physics are the most true and replicable, while the laws of biology and sociology are newer. Similarly, if we look at the laws that govern different types of investments and asset management vehicles, real estate has existed since human beings have existed, while stocks have only existed for about 500 years since the Dutch East India trading company. Therefore, things that have existed for a longer time are more reputable, predictable, and reliable over longer periods. (how to attract an investor)
Natu Myers is back with another video to talk about why real estate is the best asset class for starting a fund. Real estate is one of the most reputable and strong wealth drivers of all time. Despite the perception that real estate may be boring, it is actually the easiest asset to raise money for. Charlie Munger, the business partner of Warren Buffett, believed that to find truth and make the right decisions, you must look at what has existed for the longest period of time. Real estate has existed since human beings have existed, whereas stocks are only about 500 years old. Many wealthy individuals have interacted with real estate in some way, making it one of the most likely sources of wealth. Based on personal experience, if you want to find a millionaire, they probably have done deals in the real estate niche. (how to attract an investor)
So that’s the second reason and the third reason why one should consider borrowing for real estate is mainly due to its ease in obtaining leverage. Interestingly, banks will not lend you money to buy stocks, but they will lend you money to buy real assets. When examining the lending parameters of many lenders, it becomes apparent that almost everyone who owns a house and purchased it has invested in their own property. This makes real estate one of the most universally accepted forms of finding leverage, both on the debt and equity sides. For example, someone who owns a house has invested in their own deal, even if it may not be a good one unless they sell it or have other people living in it to generate revenue. The point is, people do not see real estate as a business, but rather as a form of security for something else. (how to attract an investor)
But really, anyone who owns a house has done a deal. They’ve acquired a mortgage from a bank and are paying it down, thereby gaining equity. This is the same capital stack at a basic level as those who acquire businesses. Real estate transactions may be more nuanced and sophisticated, with more forces at play, but it’s still one of the most widely used vehicles to generate wealth. Three reasons for this are its longevity, its widespread use, and the fact that everyone who has a basic mortgage is essentially participating in a real estate deal, even if they’re not in the business of flipping it or generating rental income. (how to attract an investor)
Real estate as an asset class should not be underestimated. There are three reasons why. First, its longevity; if it’s not broken, don’t fix it. Second, it’s a widely used vehicle for generating wealth; many millionaires have interacted with real estate in some way. Third, even having a basic mortgage means you have invested in your own deal, it’s just not considered a business because there is no rental income or flipping involved. At Razors.com, we specialize in helping people set up real estate funds, close multi-family acquisitions, and assist business buyers who have a relationship with real estate. To learn more, visit Razors.com. (how to attract an investor)