Good Morning my Wise, Constant Reader!
Here’s today’s agenda:
- For Sale – 36 Real Estate Investor Deals
- For Sale – 4 Warehouse Deals (One, in IL, is Off Market)
- Self Storage Investment – 22%-30% IRR Target
- Meet me in Orlando on Jan 31?
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2025 RE Predictions
2024 Wins & 2024 Losses
2024 Wins
- I got married this year!!
- Without my wife, Caity, I would not be in this place I am today, both personally & professionally.
- My daughter, Keeley, graduated college with a Criminal Justice degree.
- I dropped out of Villanova University in my 2nd year. I am impressed at her ability to stick with it & make it look so easy!! Congratulations Keeley!!
- We got a new dog!
- Charlie was one of our wedding gifts. “Thank you Aunt Kristin & Uncle Brian, we LOVE Charlie!!” – Me & Caity
- We wrapped 2024 closing 259 deals.
- We have 104 deals in inventory with projected profit of $7M+.
- This figure does not include any commercial real estate deals. This is the strongest inventory we’ve ever had in January. January normally reflects the slowdown which begins Nov 1st & runs through January 2. Now it’s raining leads & many deals will follow.
- We are going to double the Gross Profit in 2025 and need a few good Deal Makers to join our team. It is NOT an easy job, and NOT easy money, but an intelligent & hard worker can expect to earn $200K+/year. The upper end of the yearly income achieved by someone on our team now is just under $500K/year. Careers.DiamondEquity.com
2024 Losses
- Grandmom Breslin passed at 94 years old.
- Just before Thanksgiving, my dad’s mother passed away peacefully, in her sleep, and her own bed. My dad retired in 2024 to care for her instead of sending her to a long term care facility.
- On the day she died, Diamond Equity closed our highest grossing profit deal (high six figures) I like to imagine she played some role in that behind the scenes, in the afterlife we contemplate at times like this.
- A Few Bad Deals. We are 2 very sticky rehab projects we’ve owned now for 2-3 years.
- Risk is Real with High Volume House Flipping 2 days before closing with our owner occupant buyer, the gas company shut off the gas. This wasn’t for non-payment, but a sudden requirement on their behalf that we install a new gas line. Coordinating that new line with them took 6 months alone-very frustrating. I’ll omit the dozen other roadblocks we faced on these 2 deals for now.
- We will sell them both this year and face the reckoning… When you do a few hundred deals, every so often one will turn sour. The cure? DO MANY DEALS!! Offset those losses & make them inconsequential by racking up 6 & 7 figures worth in profits!
2025 Predictions
- Commercial Deal Flow will be abundant this year.
- Flat rents across most asset classes & higher interest rates for longer will cause more sellers to exit. This will produce transaction volume & quality deals.
- Tax Code – Bonus Depreciation.
- Everyone expects Trump to reinstate the Bonus Depreciation tax benefits. When this occurs, Buyers become MUCH MORE MOTIVATED to transact, as they receive large tax deferrals for doing so. This will spur development and large scale syndication activity in the $1M-$10M price range. This segment has been EXTREMELY challenging as the current Bonus Depreciation tax break has been sunsetting (60% in 2024, 40% in 2025-unless changed back to 100%).
- Residential Deal Flow will increase this year. (See the inventory increasing in the chart below)
- More inventory = less price appreciation. As homes aren’t going up 10% per year, those sellers become less emotionally attached and more willing to sell. This current era, a Buyer’s Market behaving like a Seller’s market, is coming to a close. Prices will hold this year, but I wouldn’t build in 5-10% appreciation anytime soon.
Doing a Deal with Diamond Equity
Here’s What I’m Buying:
- Retail Strip or Shopping Center 10,000-250,000 Sq. Ft.
- Industrial or Flex Warehouse 20,000 – 250,000 Sq. Ft.
- Industrial 8,500 Sq. Ft+ on 3+ Acres
- Prefer value-add: either low rents OR vacancy, or both
- Prefer that you either Own, or are Direct to the Owner
Storage Development Deal – Open Allocation closing Jan 2025
Want to Co-Invest with Me?
This is a picture taken outside of the Wilkes Barre, PA storage development project. We are building a similar project in Lawrenceville, GA and breaking ground in Jan 2025. We have about 1/3 of the $4M allocation available for investment. You can watch the Investor Presentation with Fernando Angelucci & I here. (reply to this email for the access code)
NOTE-I have an apartment building currently under contract and awaiting closing. Once that closes, the cash from that deal goes straight into this deal, and the allocation will be closed.
Interested in Investing? Or have further questions? Schedule a Call
I’ll be in Orlando Jan 31-Feb 2 at this Diamond Inner Circle – Commercial Academy Event. Want to meet me there?
Here’s Why I Attend:
- Network: There are more than 100 Commercial Real Estate investors attending-most seek JV Partners who can bring them deals.
- Knowledge: There will be 9 presentations of recent & active projects. There is no other place to get this level of “behind the scenes” details-most CRE investors are highly secretive and NEVER share any of their strategy. I may be one of the 9, I’ll keep you posted.
- Deal Flow: I own a shopping center, several storage facilities, 2 mobile home parks, and some flex industrial – all deals which discovered at these events.
- Orlando, FL: I love the warm weather this time of year in Florida!!