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A few days ago, I talked to someone about profitability of assets. What should be the minimum return that you get out of… let’s say… a good real estate investment? Our best ones… around 8-10%. “Not much” – he said… the stock market is giving you more… Logically, Trump had not shown up in the white house garden yet to do a performance with his hair perfectly glued to his head. But let’s reflect… Is that a good number? Around 8-10% In my humble and brutally honest opinion: it’s f*cking insane. It’s la leche! I’m tired of reading every self-proclaimed genius online saying they can do better. Much better than this… OK, let’s focus. I pay a company to clean my house. It’s expensive — but I’m happy to pay for it. Then, I have a robot that do the day to day. ​ But… That would be time taken away from what we’re actually good at. Focusing on what you’re really good at — I think that’s what separates successful people from the wannabes. When you go out looking for an investment property, there are thousands of variables. ​ ​ Now here’s where your mind might blow: Do you think I spend my own time searching for properties for myself? Then a broker that finds me the best financing. A manager that gets the best interior design and furniture. An operator that extracts maximum value of the property. If I did it myself, maybe I’d squeeze out a little bit more… maybe 10-11%. There are people who live and breathe this daily, and they’ll get me results very close to mine for a very reasonable fee. Could you squeeze out 1% more by doing it yourself? Anyway… next time that you want to do it all, think twice of what you are good at…. Although maybe, you should start here. ​Is this piece of real estate a good investment?​ PD 1: If you liked this email, don't keep it in secret and forward it to a friend. They will thank you enormously one day. PD 2: If somebody has sent you this email and you want to receive emails like this yourself, visit vicentevalencia.com PD 3: If you want unsubscribe, click the link below. |
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Accidents aside because of lack of maintenance and incompetent managers and politicians, Spain has made great things in high-speed trains. Let’s go back in time to the good times. 1988 The country decided to build a high-speed railway between Madrid and Sevilla… or Seville. 470 kilometres. New infrastructure. New technology. A country with no previous high-speed rail experience, but willing to become a top guy. By April 1992, passengers were travelling at 250 km/h. About three and a half...
You know... I just came back from China. And I have to admit something. I was impressed. Not by the skyscrapers. Not by the technology. Not even by the infrastructure… or the great toll systems (yes, I’m a geek for them). Although, to be fair, a country that added almost 2,900 km of high-speed railway in a single year deserves some credit. Some countries struggle to build 3 km of metro without a parliamentary inquiry, a budget revision and three changes of government. No. What impressed me...
As you know, I’ve been in China looking at things for our property business. Tiles. Kitchens. Bathrooms. Doors. Windows. A glamorous international adventure involving questions about hinges or how easy is to clean a toilet. Naturally, everything looks fantastic. That is rather the purpose of a showroom. Nobody puts the work-in-progress window under a spotlight. “Come in, sir. This one leaks.” And that got me thinking about infrastructure and construction sites. Project directors that had the...