Category: Jewels of Wisdom Newsletter

4 Reasons Why I Write this Jewels of Wisdom Newsletter:

1. Sell Profitable Real Estate Deals (38 For Sale Here)
2. Invite New Partners
3. Invite Capital Partners
4. Invite Real Estate Deals 

1. Sell Profitable Real Estate Deals – This needs no further detail. Buy our deals!!
2. Invite New Partners – Our Acquisition Managers are PARTNERS on every deal they create, structure, & see through to a profitable closing.

Diamond Equity Support: Leads aren’t cheap, experiences makes good deals even better, and capital to close deals isn’t always easy to come by.

The Diamond Equity Standard: Being an Acquisition Manager, a Deal Maker, is NOT an easy, cushy path in life-it is a LIFESTYLE. Making & operating deals through to closing is a 50+ hour per week requirement. And partners don’t earn salary, the earn PROFIT SHARE. This can be tough, even unacceptable for most people. However, for some, this is the vehicle to create generational wealth.

Earlier this year one of our Acquisition Managers received $340,235.41 AS HIS PROFIT SHARE for the deal they assembled & closed. The total profit was about 4 times that amount. Not bad – especially since we provided the lead, the underwriting guidance, & the capital to get that deal closed. Talk about a “no money down” deal – it was for him!!

I’m not trying to brag here, instead to  illustrate the dream that I work toward every day, 365 days per year, to fulfill for every member of the Diamond Equity team – Create huge opportunities for those I work with. The Diamond Equity standard is HIGH, and so is our support system.

3. Invite Capital Partners – You loan me the money and I pay 10% annual interest & 2 points origination – personally guaranteed by me. I have a $500,000 offering coming up this month to buy a 37,000 sq. ft. warehouse, complete some renovation, and lease up or resell for a profit. If you’re interested in funding this deal, please reply to this email. Must be one investor making this loan, no partial funding allowed. If you’re interested in receiving emails when deals like this become available, register at www.FundRehabDeals.com
4. Invite Real Estate Deals – We buy profitable real estate deals-usually value add where we buy, invest in capex, & push the value by leasing at market (larger assets) or selling turn-key to an owner user (smaller assets, such as 5,000 sq. ft. industrial). We also invest capital alongside quality operators who are sourcing, developing, & operating their own deals. Have a deal like this which projects a $1M profit or more? Please email me directly and let’s get to closing!!

Current Portfolio & Ideal Acquisitions Include:

• Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
• Farmland, 40 Acres or More Tillable & Producing Crops
• Mobile Home Communities (50 pad minimum)
• Well located Retail Development Sites
• Residential MFR & SFR
• Located anywhere in the U.S.

Recent Portfolio Exit Volume

• 2021 $54,615,000
• 2022 $54,547,000
• 2023 $57,489,000
• 2024 $52,164,000
• 2025 YTD $37,535,000

3 Key Take Aways from the Commercial Mastermind

1. Where The BEST Deals are Hidden – The best deals in real estate are often found in the follow up. The property comes to market, you make your offer, and it is not accepted. After a time, and maybe a dead deal or two for that seller, they come back around much more willing to do YOUR deal. This requires discipline to walk away at first and persistence to follow up in the face of rejection.
2. Risk Precedes Reward – While at the Diamond Inner Circle mastermind event, the largest deal of my career closed at a price of more than $16,000,000 – the reward is here. The risk was taken in 2022 when I wired away about 60% of net worth and 90% of my free cash to buy this deal. Waiting those first uncomfortable 18 months during construction was a lesson in risk taking. The cash flow in the past 18 months and now the exit are the lesson in reward-reaping the harvest!
3. Multi Family is in a State of “Reset” – The distress found in office has made it’s way into multi-family. Many markets have no rent growth & projects have debt coming due. This scenario is forcing undercapitalized operators to sell at a loss-often wiping the investors equity completely. Another lesson in risk.

2 Benefits of attending this Diamond Inner Circle commercial mastermind:

1. Finding Quality Operators – I invest alongside operators with experience & track records. I also get to underwrite their performance & thinking at these events because they present details on deals I own on stage. We do deals here. This is where I find many of my deals.
2. Deal Making Mindset – Being in the room with Deal Makers who’ve amassed $100M-$500M portfolios is refreshing. I know of no other place where I can participate in this level of concentrated commercial real estate operators. Maybe ICSC, but you’re usually meeting brokers at those events. Plus, any operators you meet are hesitant to share their trade secrets with you.

Podcast Episodes with Commercial Academy Mastermind Members

• Danny Newberry on Commercial Real Estate Investing
• Jarred Elmar on Commercial Real Estate Investing
• Rafik Moore on Redeveloping Dying Malls
• Saul Zenkevicius on Redeveloping Dying Malls Part 2
• Jeremiah Boucher on Self Storage Development

Recent Portfolio Exit Volume (Excludes JV & Syndication Deals)

• 2021 $54,615,000
• 2022 $54,547,000
• 2023 $57,489,000
• 2024 $52,164,000
• 2025 YTD $35,552,000

5 Steps of “Deal Making”

There are 5 steps to close a real estate deal listed below. Increasing your skill at each of these 5 steps offers you the chance (not entitlement) to increase your earning power. Failing on any of these steps means a Dead Deal.

1. Finding the Deal – Once you decide on the asset class you’re going to buy, you need to build a pipeline of opportunities which you can work the remaining 4 steps. Developing a strong network of brokers in that asset class is a good place to start. H
2. Underwrite the Deal – Know your position in the deal. What must occur for this deal to be a success for you?  For example, buying a fix & flip deal you must know what it will sell for after repair, how much repair is needed, and what your anticipated profit will be at your target purchase price. You are better when you underwrite your 1,000th deal than when you underwrite your 1st-the key is many repetitions.
3. Structure the Deal – The easiest structure for most deals is “cash at closing.” It gets the job done and it’s easy to negotiate (see step 4). However, many of the best deals in real estate (for the buyer & SELLER) have a seller financing component. If you’re selling a building you’ve owned forever and earning a $1M taxable event (aka-profit), it might be better for YOU to hold a mortgage for that $1M at 5% interest only (better than the 3.25% at the bank-AFTER you pay the tax bill) and receive $4,166.66 per month without eating your $1M principle.
4. Negotiate the Deal – Once you decide your offer price & terms, you then find the best way to position these to the seller. In step 4 above, you’ll notice a short example of how to position a $1M seller finance deal to a Seller. It is a good deal for the seller, and I’d personally love this deal if I were selling and facing a $1M taxable event.
5. Close the Deal – Seems obvious, but you might be surprised at how many deals fall apart before closing. Buyer or seller get cold feet, or new information arises and the deal dies. Skilled Deal Makers learn how to keep deals on track to close.

The Diamond Equity team always welcomes a true Deal Maker to join the team. If this is you, or you have a strong desire to become a skilled Deal Maker, feel free to reach out to me directly.

I’m Always Making Deals on the Following Asset Classes: (aka- I’M BUYING)

• Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
• Farmland, 40 Acres or More Tillable & Producing Crops
• Well located Retail Development Sites
• Residential MFR & SFR
• Located anywhere in the U.S.

Recent Portfolio Exit Volume

• 2021 $54,615,000
• 2022 $54,547,000
• 2023 $57,489,000
• 2024 $52,164,000
• 2025 YTD $34,530,000

Whom I Seek to Invest With

I am ALWAYS looking for strong operators with whom I can invest money.

• We Bring the Deal & Capital – You Bring the Construction, Leasing, Management, Reporting. We both bring capital. This is more of a joint venture.
• We Bring the Capital – You bring the deal and run the whole thing. Here I am more of a passive investor-writing a check only.

Here’s what I look for when writing a check into a partnership:

1. Track Record – Have they successfully run a few deals full cycle?
2. Responsive – If I cannot get a timely text message reply-even on a weekend-I’m not going to write a check. I don’t bother my partners unnecessarily-but I DO expect them to be responsive in the event of emergency while running our deals.
3. Tax Advantage – I only invest in real estate deals that offer 1 to 1 depreciation for me, the check writer. This means if I write a $300,000 check, I receive a year one tax write off of $300,000. This is much easier to accomplish now that Bonus Depreciation has been restored.
4. Returns – My return requirements depend on WHEN distributions begin
   1. 1st Quarter of Ownership – If returns begin immediately, I aim for 8% annually in regular distributions on my invested capital. This 8% must come from the cash flow of the deal and NOT capital invested. This means the deal is supporting the distributions-NOT debt. This requires a stronger deal and disciplined operator who is more averse to risk. Upon sale, the total return should exceed 12% annually.
   2. Year 2 or Year 3 – When distributions begin in Year 2 or Year 3, I aim for 20% returns or more. The entire economy, market, and world order can change in a 2-3 year period, and I want to be rewarded for that risk if things go well.
5. Property Characteristics – The last thing on my list is the property itself. It must check out, but is has the lowest priority in my decision making framework in whether to invest.

If you operate commercial real estate deals like this, we should connect. Our smallest check size is $250,000 and we often invest up to $1M or more into joint venture deals.

Here’s What We Buy

1. Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
2. Farmland, 40 Acres or More Tillable & Producing Crops
3. Well located Retail Development Sites
4. Residential MFR & SFR
5. Located anywhere in the U.S.

Recent Portfolio Exit Volume

• 2021 $54,615,000
• 2022 $54,547,000
• 2023 $57,489,000
• 2024 $52,164,000
• 2025 YTD $30,896,000

Industrial IQ Bootcamp with Saul Z

My friend & business partner, Saul Z, is hosting another Industrial IQ Bootcamp in California on Sept 13-14. I went to this event in Chicago and can vouch for the quality & value of attending. I have no affiliation with this event and am receiving no commission if you decide to go. Saul is a solid operator and this event is also solid. If you are at all interested in Small Bay Industrial investing, or perhaps becoming a great operator to whom I’d write checks, this is the event to attend.

2 Exits Coming Soon

Earnest Money is officially hard (non-refundable) on 2 retail strip centers we are working on closing. The price of both is just over $20,000,000. Both are stabilized-meaning the rents are at market & each center is in good condition.

I’d love to buy another retail center (or two) with below market rents OR some vacancy to fill. This is how we make our profit. Buy a property needing repairs and/or lease up, execute, then resell or refinance to pay off investors & reap a profit. Have a deal like this you can sell me??

Here’s What We Buy

1. Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
2. Farmland, 40 Acres or More Tillable & Producing Crops
3. Well located Retail Development Sites
4. Residential MFR & SFR
5. Located anywhere in the U.S.

Recent Portfolio Exit Volume

• 2021 $54,615,000
• 2022 $54,547,000
• 2023 $57,489,000
• 2024 $52,164,000
• 2025 YTD $30,896,000

Whom I’d Partner With

I am looking for one more partner capable of making deals 100% remotely. From our office in Chicago, you make offers, sign deals, and managing small construction projects at a distance. We provide leads, capital, and underwriting/decision making guidance throughout the process of every deal. Average per deal profit is around $55K and you’d receive 20%. Your goal is to build a pipeline that does 2-3 per month.

Please don’t reply if you “might like this” or “this sounds interesting” no offense, but if that’s your first thought-you will not be successful in this roll. Obsessive & intelligent execution is required to succeed with Diamond Equity. Also helpful is a large library of books read on psychology, investing, negotiation, and/or business biographies, and the skill set of presenting & deal making using Zoom, email, docu-sign, & the telephone.

Some of our most successful partners were in the real estate business before, on their own. They came with a background in flipping houses (ok experience), flipping contracts (better experience), and pretty much running a business they assumed was a lot like Diamond Equity prior to joining. Now that they’re here, I’m guessing they’d tell you we do things a whole lot differently than most folks in the game. Dare I say, “better”?  Or maybe “more profitably” better defines the difference. Plus we have fun.

The location for this would be in one of our 3 offices: Atlanta, Chicago, or Philadelphia, however, we might consider a fully remote situation. If this latter seems interesting to you, please know you’d only be interesting to us if you show up here-in Chicago-as needed on your dime. Far better results have been achieved by the folks on our team who simply relocate to the region.

To clarify success-the goal for your income from Diamond Equity should be $250,000-$500,000 per year, in your pocket. Several on the team have already hit that range this year-and there are another 5 months left in the year. You will work long & hard to make this happen and you will deserve the rewards you receive. This is the partner whom I am inviting to reply to this email.

Here’s What We Buy

1. Farmland, 40 Acres or More Tillable & Producing Crops
2. Well located Retail Development Sites
3. Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
4. Residential MFR & SFR
5. Located anywhere in the U.S.

Recent Portfolio Exit Volume

• 2021 $54,615,000
• 2022 $54,547,000
• 2023 $57,489,000
• 2024 $52,164,000
• 2025 YTD $30,267,000