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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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A train fails its final test. Normally, you fix the train. In Ottawa, they found another option. They changed the test. Just as Margaret Thatcher when she didn’t like her unemployment numbers… The context. In 2019, the city’s new light rail system was approaching opening day. The final trial was supposed to show it could run reliably before passengers got on board. The first three days exposed serious problems. Testing was paused. This is the point where a sensible person says: “Perhaps we...
The meeting had everything. An agenda. A board pack. Senior people. Weather conversations. Possibly biscuits. Coffee and tea. Potable sandwiches during the break. But… What it didn’t have… For years… … was the person appointed to protect the public interest. A chair. Welcome to one of my favourite PPP horror movies. Metronet. The company responsible for upgrading and maintaining large parts of the London Underground under a PPP. The issue is that Transport for London appointed a Partnership...
There you are in front of the guys from the government. Ten projects. Billions in investment. A slide deck so polished it should have its own LinkedIn account. Across the table, an experience contractor smiles. “Very exciting.” And then… back to his mobile phone… He checks the calendar. The team needed to bid your PPP is also wanted on a data centre, an energy project and a private industrial development. Tight schedule. Limited resources. All four projects will have problems. That is one of...