Category: Jewels of Wisdom Newsletter

Here’s today’s agenda:

• For Sale – 42 Real Estate Investor Deals 
• 6  Warehouse Deals for sale: www.DEICommercial.com
• Blackstone’s $39 Billion Deal with Sam Zell
• The REI Diamonds Show podcast has come to a Close…

First Time Reading?  Sign Up Here

Doing a Deal with Diamond Equity

This week’s shout out goes to Rich Lauletta for presenting an Off Market Retail deal this week. This was off market, which is ideal, but is 93% occupied and most rents are at market-so there isn’t much value to add here. This is a good deal for a 1031 buyer or even a Retail Fund seeking stable product. I’m looking for more upside/risk in a deal-like 20%-30% vacancy or more, or rents which haven’t been brought to market in more than 4-5 years

Here’s How You & I Make Some Money Together:

1. You buy a profitable deal from me to run yourself. 42 Available Now
2. I pay you 10% interest & 2 points to fund my rehab deal.  www.FundRehabDeals.com
3. We partner on a larger, longer time syndication deal.
   1. I invest my cash in syndications and am always looking for great operators.
   2. I operate syndications where you might invest. There is a small Self Storage Development allocation remaining. Target IRR 22.6%-30.6%. Reply to this email for the Investor Presentation.
4. You find me an Industrial or Retail value-add deal 40,000 sq. ft or larger located 4 hours drive from either Atlanta, Philadelphia, or Chicago, where our physical offices are located. Email me the details.

For Sale 5522 W. Division St., Chicago, IL 60651

• 8,800 Sq. Ft. Warehouse
  • 12″ Clear Ceiling Height
  • Vacant & Cleaned Out-Move Ready
  • For lease $8,800/month MG
  • More Photos Here
  • Contact Oscar at 708-970-5983
• Price $649,000 Now $549,000 

6 Warehouse Deals for Sale:  www.DEICommercial.com

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Kiavi offers Hard Money Loans Starting at 9.64%
Volume Flippers may Obtain $1M+ Lines of Credit
Get $350 Credit on Your First Loan – Begin Here
Sign up Now, even if you’re not ready to borrow & lock in your $350 credit

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Blackstone Wholesaled $19 Billion of their $39 Billion Purchase from Sam Zell

Chicago native Sam Zell (d. 2023) was arguably one of the greatest real estate investors of his time. In 2006, right at the peak of the market, he exited Equity Office Properties (EOP) to Blackstone for $39 Billion. A great deal for Sam.

Blackstone is arguably the greatest real estate investment firm of our current time, you might recognize them as Invitation Homes – HUGE buyers & owners of single family homes.

On the day Blackstone closed the deal with Sam Zell, they immediately sold more than $19 Billion worth of the portfolio. THE SAME DAY. Many, if not all, were assignment of contract deals. Sam Zell even knew what they were doing-he was happy enough getting his price (as most sellers should be right now, at the record high pricing mostly still found in the market).

For the full story, I suggest listening listening to Chapter 19 of Stephen Schwarzman’s (Blackstone Founder) “What it Takes” audiobook on audible. This is an incredible look behind the scenes of both the most prolific real estate firm in the world AND a tour through the economic downturns which occurred during our career. Shout out to Ian Wallach for referring this one to me last week.

For extra credit, you might also check out Sam Zell’s “Am I Being too Subtle” for his side of the story in this deal-and the same walk through the history of his prolific career AND the historical context of the market cycles.

The R.E.I. Diamonds Show has come to a Close for 2024

The REI Diamonds Show, my podcast, has come to a Close… for 2024. The season is over. I appreciate your time in tuning in over the years.  Keep your eyes out-the next episodes will be released in Q1 2025.  For now, I’ve personally backed off to get the Diamond Equity Machine supercharged going into 2025.

December & January are a slower time in real estate. There is simply lower transaction volume. I’ve historically used this time to think, plan, & program our business model for the coming Spring market. I am doing this again and my goal is to double our business.

You might do the same if you’re a flipper-by buying as many deals as you can find right now. Renovate while they’re slow and sell into the busy season, which I predict will begin in March and run through July 15. This is when retail buyers will be out in force and prices will hit their peak. Have Faith, buy now, & be ready to reap the harvest you deserve.

Here’s today’s agenda:

• For Sale – 33 Real Estate Investor Deals 
• Delusional Optimism
• Podcast on Earning $50M+ on a Single Deal

First Time Reading?  Sign Up Here

Doing a Deal with Diamond Equity

This week’s shout out goes to Rick Panlilio (Condo De-Conversion Specialist) for introducing me to Jamie Brandenburg of The Real Equity Group. Jamie and his team are brokers and operators of Industrial real estate in Tennessee. As you probably already know-I love industrial real estate and I’m bullish on Tennessee long term.

Jamie made an offer on this deal I have below, but also referred me to his contractor-who we will likely hire to complete the renovation on this one-assuming it doesn’t sell before that. Thx Rick! Thx Jamie! You’re both rock stars!

Another shout out goes to YOU-my weekly Jewels of Wisdom email newsletter reader. There are over 11,000 each week who open & read this email, of 25,000 or so on the list. I appreciate your interest in Diamond Equity & my weekly newsletter.  Thank you!

Writing this isn’t about the numbers though-it is about the one on one connections created when we find a way to do some business-like Jamie & Rick above.

Here’s How You & I Might Work Together:

1. You buy a profitable deal from me to run yourself. 33 Available Now
2. I pay you 10% interest & 2 points to fund my rehab deal.  www.FundRehabDeals.com
3. We partner on a larger, longer time syndication deal.
   1. I invest my cash in syndications.
   2. I operate syndications where you might invest. There is a small Self Storage Development allocation remaining. Target IRR 22.6%-30.6%. Reply to this email for the Investor Presentation.
4. You find me an Industrial or Retail value-add deal 40,000 sq. ft or larger located 4 hours drive from either Atlanta, Philadelphia, or Chicago, where our physical offices are located. Email me the details.

For Sale 203 E Trigg Avenue, Memphis, TN 38106

• 30,658 Sq. Ft. on 8.94 Acre Industrial Lot
  • Up to 40″ Ceiling Height
  • Seller may Consider Seller Financing 
  • Railroad Spur (dormant)
  • Offering Memorandum
  • For details, contact Henry Webb at 901-526-3100
• Price $985,000 

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Kiavi offers Hard Money Loans Starting at 9.64%
Volume Flippers may Obtain $1M+ Lines of Credit
Get $350 Credit on Your First Loan – Begin Here
Sign up Now, even if you’re not ready to borrow & lock in your $350 credit

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Delusional Optimism

Last week I wrote an article titled “How to Turn $100K into $3.2M. It was an example of the power of compounding and there wasn’t a single catch-THERE WERE TWO! First, you had to patiently live, wait, & invest over the 25 year time period. Second, each of the 5 year deals had to successfully double your money each time.  To be honest, this is probably Delusional Optimism…let me explain.

Delusional Optimism is different than Realistic Optimism. And also different from evaluating Risk (pessimism, if things go wrong).  All are critical to successful investing. Delusional Optimism is counting the “Luck factor” in a deal. You can count on it, you shouldn’t expect it, but you should be aware of it going into a deal. If there is none, is the risk still worth it?? Maybe-but this is deal dependent.

Before I make an investment, I ask myself, “If things go well, and we get lucky, how much upside might be in this deal?” Delusional-because I cannot get lucky every time. But if I’m risking my money, I need to see some “luck” if I’m going to take the risk. I do every deal “hoping” for a superior outcome. Here’s an example:

My First Passive Syndication Deal – Las Vegas
My “Delusional Optimism” as a Passive Investor

The first time I invested passively in a syndication, my Las Vegas Shopping center, (currently listed at $17.9M) there were 3 major moments of commitment. These were heavy moments, as I decided to move forward at each step.

1. I had to say out loud, “I’ll do it, I’ll invest my money.”
2. I had to then sign the subscription docs. I remember having second thoughts at this moment. Should I sign? Should I do this deal? Is this the right thing to do? I decided, yes, it was, and I signed the docs.
3. Wiring the money was the biggest & final step. I had some hesitation here too, but after just a moment, I sent the money.

That was it. That was all the work I did on my 1st syndication deal. No more emails, no phone calls, no decisions, & no further checks out of my pocket. It was quiet for about 14 months, receiving only my quarterly updates. Now that the distributions have started, I’m glad I made the deal. But this is still reasonably good, not yet hitting the level of my Delusional Optimism.

My Delusional Optimism – Getting Lucky in Las Vegas

My realistic optimism on the Las Vegas Shopping center deal is that I receive my money back and maybe 8%-12% IRR. My Delusional Optimism is that we get lucky, sell the deal around that $17M+ listing price, and my passive investment will generate about 1.8X the initial amount-in less than 3 years, or a 26% IRR.

Delusional Optimism – Flipping a Single Family House

You build a fix & flip deal on a $40K profit spread. You hit the Spring market perfectly at about March 17 and you get 3 offers in the first 3 days. (Right now would the perfect time to buy that flip for the Spring Exit) You call highest & best and the resulting contract & closing nets a $65K profit. That $25K is the result of luck. If this were evaluated on the way into the deal, the $25K represents my Delusional Optimism in the deal. I’m hoping for this every time. I’m counting on the $40K-Reasonable Optimism.

Underwriting Deals with Delusional Optimism

I NEVER write down the Delusional Optimism expectations-it’s only in my head. It is important to never build a deal solely on Delusional Optimism. Far better to be conservative and create deal structures and forecasts on realistic optimism with a careful eye on the risks of a deal.

My final takeaway here is to do deals with 2 levels of Optimism & one level of Pessimism. Reasonable optimism that you’ll hit an acceptable profit target and Delusional Optimism that counts on luck to deliver an outsize return.

Here’s today’s agenda:

• For Sale – 31 Real Estate Investor Deals 
• How to Turn $100K into $3.2M
• Georgia Self Storage Development
• Podcast on Building a Portfolio of Mortgage Notes

First Time Reading?  Sign Up Here

How to Turn $100K into $3.2M

First, let me begin by stating that I am not an attorney and not an accountant-this is NOT legal or investing advice. This is my own experience and the way I view my own retirement and investment philosophy. My goal is to turn every $100K investment into $3.2M by the end of my investing career. I’ll call this 25 years.

Syndication deals are partnerships where money can be placed by Limited Partners and the day to day activity of that partnership is run by General Partners. At this stage of my career, I prefer these investments over the actual ownership of rental property because I can keep my focus on my main business, Diamond Equity, which is where I derive my income & investment capital.

I Need to Win 5 Times to Reach My Goal

I choose deals where I am expecting to double my money in 5 years or less. Here’s how the math works if I can win 5 times in 5 syndications over 25 years:

The Math, if the Investment is Made in a Self Directed IRA;

• Deal 1, invest $100,000 and receive $200,000 in return
• Deal 2, invest $200,000 and receive $400,000 in return
• Deal 3, invest $400,000 and receive $800,000 in return
• Deal 4, invest $800,000 and receive $1,600,000 in return
• Deal 5, invest $1,600,000 and receive $3,200,000 in return

The Math, if my Investment is made after paying 20% long term capital gains on each profit, assuming  no tax code change, over my 5 deal, 25 year time horizon:

• Deal 1, invest $100,000 and receive $200,000 in return
• Deal 2, invest $180,000 and receive $324,000 in return
• Deal 3, invest $324,000 and receive $583,200 in return
• Deal 4, invest $583,200 and receive $1,049,760 in return
• Deal 5, invest $1,889,568 and receive $1,889,568 in return

Most of my personal syndication investments are done in the latter example, where I am paying tax at each profit event. Not optimal, but I didn’t come into the real estate business from another career – owning an IRA from a previous employer. If you want to learn more about self directed IRA’s, check out this podcast I recorded with Damion Lupo.

Yes, this plan assumes optimal performance across 5 deals. Challenging, maybe, but not impossible. I keep about 1/3 of my portfolio in real estate owned, 1/3 in syndication deals like this, and 1/3 in cash which I lend in short term Private Mortgage Investment Opportunities.

Below you’ll find details for my most recent syndication deal where I am investing my cash & also acting as a general partner. This means I am actively managing this project with Fernando and the construction team. If you’re interested in investing in this deal alongside me & Fernando, please reply to this email and I’ll send over the replay of the Investor Presentation we did a week or so back.

Wreaths of LUV – Order Yours today & Support Chicago’s Youth

These Holiday “Wreaths of LUV” are hand-crafted by the paid interns at the LUV Institute. Every year I order a few dozen and have them shipped to my friends & family all over the U.S. Order yours here.

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Kiavi offers Hard Money Loans Starting at 9.64%
Volume Flippers may Obtain $1M+ Lines of Credit
Get $350 Credit on Your First Loan – Begin Here
Sign up Now, even if you’re not ready to borrow & lock in your $350 credit

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Accredited Investors – Just over $1M Remaining for this Raise
Lawrenceville, GA – 87,068 Sq. Ft. 3 Story Storage Facility
Reply to this if You’re Interested in Investing

I am building this facility with my partner Fernando Angelucci and his team at SSSE. Fernando has a background in engineering and has closed 53 Self Storage deals across 24 states with more than $230M in value. This project will be his 3rd Class A facility being built ground up. You can view his 2nd Class A facility-nearly completed here (located in Wilkes Barre, PA)

This current project is projected to run for 3 years, to allow 9-12 months for construction followed by 24 months to stabilize (rent), then sell the project. The buyer for the completed project will likely be one of the publicly traded Storage REITs.

Sometimes these REITs buy projects at CO (certificate of occupancy) and complete stabilization on their own. If this were to occur at a favorable price, this project may return capital much earlier than the projected 3 years. This would be good, but may or may not occur.

We already have the full $4M capital committed for this deal, but are opening up just under half of the deal from our own portion to accredited investors in our network.

I’m personally doing this deal for this reason: 

1. This deal is heavily in favors the investor/limited partners and offers superior potential returns than my 4.51% money market accounts.
   1. 80% of the profits go to the Limited Partners (The $4M capital raise)
   2. 20% of the profits go to the General Partners (who build the deal, guarantee the loan, and co-invest)

As a general partner, sharing a very small portion of that 20% with our team, this deal would not be worth my time. We construct deals like this as a place to multiply our own capital by investing our cash on the LP side of the deal. That’s why 80% of the profit goes to those partners-because it is the same people running the deal on both sides. These are the type of syndications I look for-where the general partners are running the deal to keep their money working-not simply to generate management fees for themselves.

Here’s today’s agenda:

• For Sale – 35 Real Estate Investor Deals 
• Timing the Real Estate Market
• Georgia Self Storage Development
• Office & Retail Real Estate with Joe Brady – Podcast

First Time Reading?  Sign Up Here

How to Time the Real Estate Market

With the holidays upon us, the real estate market has slowed to a crawl. Due to the lower activity, you can buy your best deals right now. Then you can patiently renovate those deals through the Winter and sell in the Spring, when activity is ramping up again.

Properties needing work listed on the MLS are one of the best sources of deals right now. We have 35 available here. People are motivated and offers are not abundant. Go against the trend, schedule showings, and MAKE OFFERS. You’ll win some, find your next project, and position yourself perfectly for 2025.

Wreaths of LUV – Order Yours today & Support Chicago’s Youth

These Holiday “Wreaths of LUV” are hand-crafted by the paid interns at the LUV Institute. Every year I order a few dozen and have them shipped to my friends & family all over the U.S. Order yours here.

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Kiavi offers Hard Money Loans Starting at 9.64%
Volume Flippers may Obtain $1M+ Lines of Credit
Get $350 Credit on Your First Loan – Begin Here
Sign up Now, even if you’re not ready to borrow & lock in your $350 credit

---

Accredited Investors – Just over $1M Remaining for this Raise
Lawrenceville, GA – 87,068 Sq. Ft. 3 Story Storage Facility
Reply to this if You’re Interested in Investing

I am building this facility with my partner Fernando Angelucci and his team at SSSE. Fernando has a background in engineering and has closed 53 Self Storage deals across 24 states with more than $230M in value. This project will be his 3rd Class A facility being built ground up. You can view his 2nd Class A facility-nearly completed here (located in Wilkes Barre, PA)

This current project is projected to run for 3 years, to allow 9-12 months for construction followed by 24 months to stabilize (rent), then sell the project. The buyer for the completed project will likely be one of the publicly traded Storage REITs.

Sometimes these REITs buy projects at CO (certificate of occupancy) and complete stabilization on their own. If this were to occur at a favorable price, this project may return capital much earlier than the projected 3 years. This would be good, but may or may not occur.

We already have the full $4M capital committed for this deal, but are opening up just under half of the deal from our own portion to accredited investors in our network.

I’m personally doing this deal for this reason: 

1. This deal is heavily in favors the investor/limited partners and offers superior potential returns than my 4.51% money market accounts.
   1. 80% of the profits go to the Limited Partners (The $4M capital raise)
   2. 20% of the profits go to the General Partners (who build the deal, guarantee the loan, and co-invest)

As a general partner, sharing a very small portion of that 20% with our team, this deal would not be worth my time. We construct deals like this as a place to multiply our own capital by investing our cash on the LP side of the deal. That’s why 80% of the profit goes to those partners-because it is the same people running the deal on both sides. These are the type of syndications I look for-where the general partners are running the deal to keep their money working-not simply to generate management fees for themselves.

Here’s today’s agenda:

• For Sale – 35 Real Estate Investor Deals 
• Conyers Single User Warehouse-For Sale
• Georgia Self Storage Development (Zoom Link & Time)
• Short Term Rental Strategy – Podcast

First Time Reading?  Sign Up Here

Doing a Deal with Diamond Equity

Thank you Rex Gravitt for making the introduction to Greg at Piedmont Bank.

For Sale 1314 Olympic Ct, Conyers, GA 30012

• 6,600 Sq. Ft. on 18,731 Sq. Ft. Industrial Lot
  • Up to 19′ Ceiling Height
  • 2 Overhead Garage Doors
  • 1 Year Sale/Leaseback ($4,400/mo) Or Vacant
  • Offering Memorandum
  • For Lease at $6,000/month
• Price $635,000 

This warehouse is move-ready and includes a 1,600 sq. ft. Upper Office area already built out. If you’re in need of higher ceiling height, you might demo that area. The ground floor plate is 6,600 sq. ft., however there is 8,200 sq. ft. of usable space if you include that office area.

Seller is willing to lease back for 1 year at $8NNN-which you might prefer if you’re buying this for strictly investment purposes. This allows you time to be patient in finding your next tenant.

If you’re buying and wish for immediate occupancy, we can arrange this property to be delivered vacant at closing.

Conyers, GA is Southeast of Atlanta. It is experience the same growth curve as most of the sunbelt region of the U.S. Small warehouse product is in high demand and there is little inventory available. This dynamic will very like create rising rents in this building for years to come.

Please connect with Hannah Branham for details at 404-754-5829

Wreaths of LUV – Order Yours today & Support Chicago’s Youth

These Holiday “Wreaths of LUV” are hand-crafted by the paid interns at the LUV Institute. Every year I order a few dozen and have them shipped to my friends & family all over the U.S. You can order yours here.

Below is a photo (circa 2016) of Aaron Lockhart (runs Diamond Equity, Chicago), myself, Cosette Wilburn (founded & runs LUV Institute), & our friend Joshua Walls. Pictured top right is an example of the Wreaths of LUV. This photo is from a few years ago when we had to physically pick them up. Now with nationwide shipping, it’s much easier to Spread the LUV this Holiday Season!!

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Kiavi offers Hard Money Loans Starting at 9.64%
Volume Flippers may Obtain $1M+ Lines of Credit
Get $350 Credit on Your First Loan – Begin Here
Sign up Now, even if you’re not ready to borrow & lock in your $350 credit

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$1,500,000 Remaining Capital Raise 
Lawrenceville, GA – 87,068 Sq. Ft. 3 Story Storage Facility
Zoom Presentation, Q&A Thursday, 11/21 at 12ET/11CT

I am building this facility with my partner Fernando Angelucci and his team at SSSE. Fernando has a background in engineering and has closed 53 Self Storage deals across 24 states with more than $230M in value. This project will be his 3rd Class A facility being built ground up. You can view his 2nd Class A facility-nearly completed here (located in Wilkes Barre, PA)

This current project is projected to run for 3 years, to allow 9-12 months for construction followed by 24 months to stabilize (rent), then sell the project. The buyer for the completed project will likely be one of the publicly traded Storage REITs.

Sometimes these REITs buy projects at CO (certificate of occupancy) and complete stabilization on their own. If this were to occur at a favorable price, this project may return capital much earlier than the projected 3 years. This would be good, but may or may not occur.

We already have the full $4M capital committed for this deal, but are opening up just under half of the deal from our own portion to accredited investors in our network.

I’m personally doing this deal for this reason: 

1. This deal is heavily in favors the investor/limited partners and offers superior potential returns than my 4.51% money market accounts.
   1. 80% of the profits go to the Limited Partners (The $4M capital raise)
   2. 20% of the profits go to the General Partners (who build the deal, guarantee the loan, and co-invest)

As a general partner, sharing a very small portion of that 20%, this deal would not be worth my time. We construct deals like this as a place to multiply our own capital by investing our cash on the LP side of the deal. That’s why 80% of the profit goes to those partners-because it is the same people running the deal on both sides. These are the type of syndications I look for-where the general partners are running the deal to keep their money working-not simply to generate management fees for themselves.

Are You Interested in More Information?

Fernando & I are hosting a 60 min. Zoom Presentation for Potential Investors

• 12ET/11CT this Thursday 11/21
• Zoom link: www.REIDiamonds.com/zoom
• Please mark your calendar right now

Happy Sunday!!

I’m currently in the Bahamas for the yearly DIC (commercial mastermind) retreat. This is the first time in many years that I have (mostly) unplugged from my work and taken a break.

I’m grateful for my wife, Caity, for helping me slow down a bit while I’m here.  She also convinced me to swim, underwater, with the dolphins yesterday – what an experience!! We haven’t got the photos yet-but I’ll share them on Facebook once we receive them.

I’m also grateful for the Diamond Equity team for keeping everything running smoothly this week. Special shoutout to Mike & Jean, 2 senior Acquisition Managers who stepped up to run our internal Diamond Mastermind meetings. Catch a sneak peek on what we discuss behind the curtains below.

Here’s today’s agenda:

• For Sale – 30 Real Estate Investor Deals 
• $10 Million Loan needed for our Lawrenceville, GA Development Deal
• Rehabbed Warehouse-Flex Space For Sale $425,000
• Podcast on Flex Industrial Development
• The Diamond Equity Mastermind – Sneak Peak!

First Time Reading?  Sign Up Here

Doing a Deal with Diamond Equity

Shouts outs this week to Ken Grant & Carlos Green for sending over 2 deals for review. I’m embarrassed to report that these 2 deals are still on my “to-do” list since I’ve been in the Bahamas this week… I am here with my Commercial Mastermind business partners-and plan to review with them in person–assuming we can remove ourselves from these Beaches long enough to do so…

For Sale 3147 Louis Sherman Dr,, Steger,  Illinois

• 3,950 Sq. Ft Warehouse + Office
• 6,500 Sq. Ft. Fenced, Paved Yard
• Full bathroom with shower
• Turn Key-Move Right In!
• M1 Zoning (map) See pg. 57 for uses allowed
• Price $425,000 (Possible Seller Financing)

This warehouse has been completely updated and ready to move in. Perfect for contractors, storage, certain auto repair, warehousing etc. This place would be ideal to store a car collection, boats, jet skis, etc.

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Kiavi offers Hard Money Loans Starting at 9.64%
Volume Flippers may Obtain $1M+ Lines of Credit
Get $350 Credit on Your First Loan – Begin Here
Sign up Now, even if you’re not ready to borrow & lock in your $350 credit

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The Diamond Equity Mastermind – a Sneak Peek!

Every Monday for the past 9 years, we have conducted a weekly call known internally as “The Diamond Mastermind”. On these calls we have developed & refined our business model, building our internal knowledge base shared by more than 20 individuals dedicated to making deals within the Diamond Equity organization.

The Diamond Mastermind is not open to the public. You cannot pay any amount of money to “join” this Mastermind. The only way you may attend is if you’re on the Diamond Equity team. This is very exclusive.  However, here I am giving you a sneak peak.

This week’s topic, by popular suggestion, is our Relentless Work Ethic. Deals don’t happen by themselves. It takes disciplined strategic effort to make 3,188 offers in the past year, generating the 220 closed deals and 115 awaiting closing. On Monday’s Mastermind, everyone on our team will contribute their best thoughts around the topic of Relentless Work Ethic & Strategic Follow up.

This topic was born, in part, from Tim Grover’s book, Relentless. Tim was Michael Jordan’s trainer before & during the rings he won with the Chicago Bulls. This book, as well as the books on this list, have been drivers of many of our Diamond Mastermind calls, and by extension, the creation of Diamond Equity. It is all right there for you to obtain. Of course, like the Oral Torah, having the business leader’s explanation of how these books tie into the business model certainly helps!

If this Diamond Mastermind sounds like a good idea to you, perhaps joining the Diamond Equity team might also be good. Right now we are looking for another Acquisition Manager in Atlanta & Philadelphia, as well as a Virtual Ac Manager working from the Chicago office. Please note, I don’t respond to inquiries to join our team made by email. Instructions on how to apply can be found here.

$10 Million Needed to Develop our Storage Facility in Lawrenceville, GA
Any chance you know any Execs at a local Atlanta regional bank??

We own a 5 acre lot and already have the permits to begin building. We need a total of $14M to build the 100K sq. ft storage facility which will be sold to one of the large REIT’s after stabilized.

Although we already have loan proposals in hand, our ideal contact would be a president, or other executive at a regional local bank serving the Atlanta MSA-these banks often provide the best terms. Any chance you know an executive at an Atlanta Regional bank and would make an intro? Please reply to this email, if so.  

We already have the equity here to execute on this deal, but we may open it up to our network for passive investment. The deal is projected to return 2X the up front investment within 5 years.  The construction on this deal will take about 12-15 months once the shovel hits the dirt, followed by another 24-36 months to fully lease/stabilize. Once stable, this asset will move quickly to a large institutional buyer.

Lawrenceville, GA is a very constrained market when it comes to self storage-meaning the permits & zoning approval are not easy to obtain. Ours are in-hand. For this reason, there are already inquiries from those institutional buyers who have expressed interest in buying well before stabilization. If this were to occur, the 2X return would occur much faster than the projected 5 years.

If you might have an interest in taking a small piece of this project, please reply to this email & I’ll keep you posted. The minimum investment would be $50K and open to accredited investors only.

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.
• Must be value-add, either low rents OR vacancy

Here’s today’s agenda:

• For Sale – 43 Real Estate Investor Deals 
• $7 Million Dollar Offer Presented Same Day
• Podcast on Selecting the Best Airbnb Markets

First Time Reading?  Sign Up Here

Doing a Deal with Diamond Equity

Another Shout out to Ken Grant for sending over a 125K sq. ft. industrial flex deal. The case study of our quick progress can be found below.

Also Shouting out Marc Mittman for sending over pre-auction details on a 200K sq. ft. industrial building. This latter deal is likely a pass for us because it is spread over 4 stories. Ideal industrial properties are single level so that tenants can drive trucks into their space.  Plus, no elevators (crazy expensive to maintain/replace) & the street level rents are always higher.

For Sale 203 E Trigg Avenue, Memphis, TN 38106

• 30,658 Sq. Ft. on 8.94 Acre Industrial Lot
  • Up to 40″ Ceiling Height
  • Seller may Consider Seller Financing 
  • Railroad Spur (dormant)
  • Offering Memorandum
  • For details, contact Henry Webb at 901-526-3100
• Price $985,000 

This deal is perfect for Industrial Outdoor Storage. Renovating this current warehouse, building out a secure, outdoor lot with fencing and then leasing to contractors needing indoor & outdoor space (think excavation companies) would bring unique product with sticky tenants.  Capex would likely be $1.5M and the stabilized value might be in the $4M-$6M range. Details on the Industrial Outdoor Storage space can be researched on this Podcast I did with Chris Long.

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Kiavi offers Hard Money Loans Starting at 9.64%
Volume Flippers may Obtain $1M+ Lines of Credit
Get $350 Credit on Your First Loan – Begin Here
Sign up Now, even if you’re not ready to borrow & lock in your $350 credit

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$7,000,000 Offer Made in less than 4 Hours of the Referral

Ken Grant has sent over maybe 4-5 referrals, most ok, but this latest one was perfect. All of these deals were represented by other brokers, but not publicly marketed. The majority of commercial real estate deals are done this way-by brokers and off market.

This current deal is perfect for us. Single story flex space with some warehouse/showrooms/offices on 4.5 Acre lot. Also 85% occupied, so the lift is light. Income on day 1, we can invest $300K-$500K in updates and fill the remainder to push our value by $2M or so.

My partner happened to already be in Ohio checking out other projects already owned. We received the lead from Ken at 8am, toured the property by noon and made a verbal offer, and had an official LOI submitted shortly thereafter.

If you refer a deal to me I’ll let you know immediately if it’s something I’ll pursue. If it is, you can expect my team to jump quickly and get our offer out immediately. If we win this deal and get to closing, we have a substantial referral for Ken: either a cash payout or a slice of equity. How much will depend on how the negotiation plays out with the broker/seller.

Worth noting, Ken is a broker, but rather than try to insert himself into every deal, he has simply forwarded me the marketing flyer and let us take the reins. This is best for two reasons:

1. This allows us to speed things up. When coop brokers get involved in commercial deals, the listing broker often slows down the info because they’re trying to double side every deal.
2. Then, as a follow up, the listing broker will be much more inclined to advocate for our offer when working directly and collecting their full commission.  This is how the game works.

Thanks again, Ken! Keep them coming!

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.

If you find me a deal like this, I’m happy to include you in the General Partnership ownership stack with an equity stake.

People often ask for VIP treatment on our deals. We reply that we don’t play favorites with our buyers and we run a fair process. The truth is, we do favor STRONG buyers over weak buyers. Those strong buyers are the VIPs who win our deals often-even at lower prices.

Here’s today’s agenda:

• For Sale – 24 Real Estate Investor Deals 
• 3 Deal Killers
• Podcast on Property Radar with founder Sean O’Toole
• How to Borrow OR Lend Private Money (Masterclass)
• 3 Steps to VIP Treatment on Diamond Equity Deals

First Time Reading?  Sign Up Here

Today’s Featured Deal For Sale 10 Units + 4 Garage Spaces
Galewood Section of Chicago, 60639

For Sale 6221 W. Wabansia Avenue, Chicago, IL 60639

I’ve owned this building since 2019. During that time, I’ve torn off & replaced the roof with a 20 year membrane, rezoned to legalize the basement units, added HVAC in 9 of 10 units to maximize rent, and updated most of the units.

The average rent per unit is $1,400 and each is 2 Bed 1 Bath. This is desirable because 2 bed units rent quicker & go vacant less often than 1 bedroom units (people form relationships & move quickly thereafter). This building also has separate electric & gas meters leaving only hot & cold water expenses on you, the owner.

• Current Gross Income $150,000
• $500,000 Capex in the Past 4 years
• Garages may be rented at $150/mo per space
• On site laundry, managed by 3rd party
• View the Offering Memorandum
• Price $1,149,000 

Please contact my broker, Jason Marcordes, at 630-842-5557

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Kiavi offers Hard Money Loans Starting at 9.64%
Volume Flippers may Obtain $1M+ Lines of Credit
Get $350 Credit on Your First Loan – Begin Here
Sign up Now, even if you’re not ready to borrow & lock in your $350 credit

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How to Get VIP Treatment on Diamond Equity Deals

First, let me begin by highlighting that we run a fair process on every deal. We don’t play favorites with any buyers and give everyone an equal shot to present offers on every deal.

To gain VIP status, you simply follow these 3 steps and earn your reputation as a strong buyer:

1. Make the Offer
2. Large EMD
3. Always Close the Deal

Step 1: Make the Offer – ALWAYS make your offer. Sitting a deal out is the 100% guaranteed way to NOT get the deal. We appreciate all offers made, even when they are below (sometimes significantly below) our offer price.

Step 2: Large EMD (earnest money deposit) – We often choose our buyer based on the strength of the offer. In other words, we ask ourselves, “What are the chances that this buyer follows through on their offer & closes the deal as they agreed?”

While our minimum suggested EMD is just $5,000, buyers will sometimes put much more on the contract, such as $25,000 or more. One buyer who really wanted a deal put down $125,000 EMD on a $125,000 purchase price. They won the deal. Large EMD = Strong Offer.

Step 3: Always Close the Deal – We sell a lot of deals to buyers who have performed with us in the past. Close your deal as agreed, and reputation is cemented as a strong buyer.

If you cancel or try to renegotiate a deal, any future offer you make will be viewed with great suspicion. Your reputation will be cemented as a weak buyer who doesn’t follow through.
Strong buyers win deals over weak buyers when their price is higher.
Strong buyers win deals over weak buyers when at equal prices.
Strong buyers even win deals over weak buyers when their price is lower.

Since Jan 1, 2023, we have bought & sold more than $96M in residential real estate. Not a single deal was more than 6 units. And we made a profit on more than 97%. Do enough deals, you’ll take a few losses. The key to success in real estate? Do MANY deals, not just one. Many eggs in the basket. Some will break.

Here’s today’s agenda:

• For Sale – 33 Real Estate Investor Deals 
• Rockefeller’s Strategy applied to Investing
• Podcast on How to Flip Commercial Deals for $1M+ Profits

First Time Reading?  Sign Up Here

Doing a Deal with Diamond Equity

Quick Shout out to Robert Jones for sending over a few deals to review. These didn’t exactly fit the buy box, but I am grateful for the chance to view.

Today’s Featured Deal For Sale 6.71 Acres, just $95,000

For Sale 19 Lots on Mustang Dr. Vineland, NJ 08361

Here is a chance to buy & develop, or simply land bank 6.71 acres. Just across the street there are approximately 17 houses. On the back side is a solar farm-which will make for quiet neighbors.

This project has not been soil tested or entitled for construction, which is why the price is so cheap. If it were approved, the value would likely be 2-3X your purchase price of $95,000. If you buy it and get it approved, you drive the value.

Or, just buy it and sit on for a decade or two. Taxes are cheap enough.

• 19 lots across 6.71 Acres
  • W5 Zoning Allows Single Family
  • No soil test, or survey available
  • Photos here
  • For details, contact Amanda at 215-987-6705
• Price $95,000 

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.

An ideal property might be a shopping center you notice with many vacant spaces. If you notice a property like this, please refer that location to me by replying to this email.  I’ll hunt down the owner and never stop until they sell to me. If I close the deal, I’m happy to include you in the General Partnership ownership stack with an equity stake.

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Kiavi offers Hard Money Loans Starting at 9.64%
Volume Flippers may Obtain $1M+ Lines of Credit
Get $350 Credit on Your First Loan – Begin Here

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Sign up Now, even if you’re not ready to borrow & lock in your $350 credit

How to Flip Commercial Property & Profit $1M+

My buddy Sean Katona & I recently recorded an REI Diamonds Show episode on how he has flipped several commercial properties in the past few years netting himself & his investors profits exceeding $1M on each. Listen here

John Rockefeller’s Strategy on Obscene Returns

While Diamond Equity does NOT enjoy the kind of monopoly that John Rockefeller built with Standard Oil (that’s Exxon/Mobil today), we have used his business strategies to build a company that has bought & sold $96,000,000 in real estate since Jan 1, 2023. Since we were founded in 2006, that number is likely 4-5 times that figure.

We’ve been blessed & lucky in the market for sure, but even more importantly-just like Rockefeller-blessed & lucky to have assembled a smart, loyal, & hungry team to create this reality. I suggest listening to The Founder’s Podcast Ep 368 – a review of Rockefeller’s autobiography.

One nuance of the Rockefeller strategy was in buying assets that compounded inside the business. Let me explain. If you earn $182,101 or more per year flipping houses, you’re paying 32% in federal tax alone. So on that next $50K in income, you end up with $34,000. This is a good problem to have-because you’re making good money.

As high-income real estate investors, we have 2 options to compound our money inside of the business the way that Rockefeller did:

1. Long Term Rentals – Long term rentals are likely the best place to start if you’re in the front end of your real estate career. Once you reach a certain amount, maybe 10, maybe 100 depending on what you buy, you realize your rentals are a BUSINESS. A hungry business that requires a team and your attention to continue the compounding effectively.
2. Passive Investments in Syndications – Investing in syndication deals is where you place your money with the operator and allow THEM to be the BUSINESS that compounds your money. I look for syndications which will double my money every 5 years.

Doubling your money every requires a return of 14.4% per year with NO tax paid along the way. This is the tax-efficient mindset toward investing that syndications provide. Double your money in 5 years, if compounded at 14.4%.

If you managed to flip houses and earn 20% return each year, pay tax at 32% (or more), and compound that amount every year for 5 years, you’d end up just short of doubling your money. The math can get complicated, and I won’t waste your time going through it here right now.

The point I’m making here, and the lightbulb moment for me, is that the most efficient investments I can make are into other businesses with great teams, solid business models, and competitive edge in their space which the value will compound over time without getting shaved by taxes until the very end-after it has grown in value. And, at this later date, treated as long term capital gains instead of ordinary income.

Who are Great Operators? Meet Henry Flagler & John Rockefeller

The photo above is an actual Standard Oil Stock certificate I keep in my office, always within sight. I find it inspirational that John Rockefeller & Henry Flagler both signed this certificate. They’re energy is here, with me, as I negotiate deals, conduct my business, and write this email.

Henry Flagler was John Rockefeller’s business partner. He was a few years older and together they built and operated Standard Oil. Once retired, Henry Flagler fell in love with the warm weather in Florida and became the real estate developer responsible for much of East Coast Florida. He even built the Florida East Coast Railroad through the keys, which eventually became The Overseas Highway extending US Rt 1 to Key West. These were HUGE risky projects-but their impact on our country, tremendous!

Henry & John provide an excellent standard for what to expect in Great Operators. They knew the details of their business. They always strive to evolve the business, regardless of how much success they achieved. These are the kind of people I want to be in business with. Either as my business partners, or those with whom I can place my capital. 

Seek quality. Or, if you haven’t yet gotten rich enough, BE quality. Become great. Be a great partner, find great deals. The gates of Heaven will open and pour upon you more opportunity than you can handle. Reading the biographies, or even listening to the Founders Podcast are a great path for anyone seeking to succeed at a higher level in the business of making money.

Oh-and if you’re in Palm Beach, be sure to visit the Flagler Museum. I stumbled upon it by accident a few years ago-and discovered a rich history and source of extravagant inspiration right on the water in one of the toniest real estate markets in the U.S.

Our prayers go up for those affected by the hurricanes over the past few weeks. Even just one hurricane is a disaster, but a 2nd just a few days later in the same areas – Astonishing! A few of my friends and partners have sustained major damage, but thankfully, no loss of life. Sadly, that’s not the case for everyone.

Here’s today’s agenda:

• For Sale – 43 Real Estate Investor Deals 
• Loan me $925K Short Term?  10% int & 2 Points
• How we Flip Houses all over the U.S.
• Hurricanes Created the Booming Florida Real Estate Economy
• Podcast on Industrial Real Estate with Ian Horowitz

First Time Reading?  Sign Up Here

Doing a Deal with Diamond Equity

Quick Shout out to Ken Grant for sending over a 200K sq. ft. Retail Center valued at roughly $16M. If we end up closing this, Ken will be included in the ownership stack for making the referral. Thank you Ken!

For Sale 203 E Trigg Avenue, Memphis, TN 38106

• 30,658 Sq. Ft. on 8.94 Acre Industrial Lot
  • Up to 40″ Ceiling Height
  • Seller may Consider Seller Financing 
  • Railroad Spur (dormant)
  • Offering Memorandum
  • For details, contact Henry Webb at 901-526-3100
• Price $985,000 

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.

If you find me a deal like this, I’m happy to include you in the General Partnership ownership stack with an equity stake.

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Kiavi offers Hard Money Loans Starting at 9.64%
Volume Flippers may Obtain $1M+ Lines of Credit
Get $350 Credit on Your First Loan – Begin Here
Sign up Now, even if you’re not ready to borrow & lock in your $350 credit

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Here’s how we Flip Houses all over the U.S.

Here at Diamond Equity, we flip houses all over the U.S. We have a few favorite states, but are equipped to do a deal anywhere through our Virtual Offer system. Here’s how it works:

A seller sends photos using our Virtual Offer app. We evaluate the condition from the photos and obtain comps and market data from Zillow and other paid national real estate information sources. We schedule a zoom call and present the offer face to face.

Once under contract, we hire a local appraiser to confirm our underwriting and a local inspector to professionally inspect the property. Often, we find an agent who has represented rehabbed properties as the listing agent and tap them for any contractor resources need to prepare the house for retail sale.

We fund the deal, manage any repairs, and sell the deal without ever stepping foot into the house or the state where the property is located. This is all done by our National Acquisition Managers working from our Chicago location.

Our ideal profit on a deal like this is $100,000 or more to justify the risk. Our average actual profit on deals like this is currently about $50,000. In unknown markets, we always need to expect more as a margin of safety.

Our National Acquisition Manager is a 20% partner on each deal, bringing none of their own capital and none of their own leads. The average partner split, calculated at 20% is $10,000. They run the deal start to finish. The Acquisition Manager is the captain of the deal-directing, with the help of senior leadership, the negotiation, acquisition, sale prep, and sale.

Right now we rank highly in google for many terms and many locations throughout the U.S. and also generate leads using direct mail. We are looking for a new partner to join the National Team. This person would ideally be located in, or willing to locate to the Chicago region to work from our office, however, for a candidate with similar experience and a track record of closing deals at a distance, we may consider 100% remote work.

If joining our team and working directly with Aaron Lockhart, Vice President, and myself sounds exciting, please email me a resume and a cover letter detailing your deal making experience.

Are You Interested in Lending $925,000 for 6 months at 10% Interest?

We just received a verbal agreement on a $900,000 purchase which will be cleaned out and immediately listed for sale at $1,349,000. This closing will occur in 2 weeks or less. Here’s how it works:

1. You lend $925,000 to the LLC which owns the house.
2. The loan pays you 10% interest & 2 points origination ($18,500)
3. Your loan is secured by a 1st position mortgage & note
4. I personally guarantee repayment with interest, regardless of whether the deal turns a profit
5. The $925,000 must wire to the title company 1 day prior to closing, which we anticipate to be October 29.
6. Because this deal may sell & return capital in less than 3 months, we pay a minimum return based on 90 days. The minimum return will be $41,308.22 calculated as $22,808.23 (10% for 90 days) + $18,500 (2 points)
7. Upon repayment, you’ll send the title company a notarized release and mail us the original note marked “paid”.

If you are interested in discussing this deal further, please reply to my email. If you are interested in lending to us in the future at amounts smaller than this current opportunity, please sign up at www.FundRehabDeals.com

Hurricanes are Responsible for Florida’s Real Estate Booms

Florida real estate has been one of the most “Boom & Bust” real estate markets in the U.S. since air conditioning in homes was invented. One reason for this, in addition to warm Winters & favorable state tax code, is the destruction wrought by the hurricanes.

Hurricanes provide a bust after the storm hits because many choose to Just Sell it as is, rather than rebuild. One of my friends called 3 days after Helene last week and offered me his house for less than his mortgage balance. He just wanted out and combined with the insurance, could sell for less than he owed. I assume many people feel exactly like him right now.

The issue here for me, as a flipper, is that I cannot gauge the demand for the renovated house here-as I expect a large number of houses will hit the market in the next 12 months under the exact same circumstances. Here comes the oversupply for the Florida market.

The demand also weakens as many would-be buyers will hold off for a year or two until the region rebuilds. This is partially because of the fear of further hurricane destruction and partially because many of our favorite restaurants, ice cream stores, and other businesses are not there right now. Hopefully they can rebuild, but many will not. The market is made up of those hunting for bargains-and the offers are lower than they used to be.

See Cape Coral for the numbers. This is the result of this phenomenon 2 years after Hurricane Ian. Not a blow out, but this market tops the lists of softening markets way ahead of most of the U.S.

Now for the Hurricane Boom

Florida is unique in that much of the outdated inventory is destroyed by the Hurricane cycle. Many with insurance simply sell quick and walk away by choice. Those underinsured or uninsured are forced to sell and walk away. More of this distressed activity occurs near water-where values and demand are always strong.

The buyers either rebuild the existing house with higher end finishes-driving up the value OR tear down and rebuild a much higher end house to suit their needs-also driving the value up. Now you end up with $1M+ renovated homes or $3M-$5M new constructions mansions instead. This in turn, drives up desirability for more wealth to become attracted to the neighborhood and pay more for the other existing homes in the area.

This cycle of boom takes a while after each Hurricane, but viewed over a 75 year period, it’s easy to understand how Miami, Ft Lauderdale, & Naples came to be. On the West Coast of Florida near Clearwater & St Pete, the smart money is buying near the water with similar expectations of future growth. I’d say if you’re patient, you’re probably right, but over the next 12-36 months it’s likely going to be a bumpy ride.