Shanghai at dusk, Huangpu river and financial district skyline in sunset
For the Chinese economy, the hit from the Evergrande failure will shake the system badly. As evidenced by the government stepping in to shore up the company’s day-to-day operations in China.
Peter Cohan, a lecturer at Babson College and author of “Goliath Strikes Back,” told GOBankingRates that Evergrande’s default will have no significant effect on the U.S. economy since it has only $20 billion in U.S. dollar bonds outstanding. Nevertheless, we think this is a moment to knock on wood.
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What do you see as the fallout in the Los Angeles real estate market? Comment
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The size of the bond market is estimated to be at $119 trillion worldwide and $46 trillion for the U.S. market — the Evergrande bonds are 0.04% of the U.S. total,” Cohan said. “Investors in those bonds will suffer losses. The risk of Evergrande’s default has been high for a long time. Those who invested in the bonds should be well-prepared for what is happening now. Even if those investors end up losing everything, the systemic impact will be tiny.” See the source article here.
The road to investment success is lined with multifamily real estate properties.
This is an addition to our series on top investment opportunities in the news. We are going to continue to present new and profitable high-ROI in a newsletter form. This week, we are covering the work of Grant Cardone.
Grant Cardone is a New York Times bestselling author and an internationally renowned speaker on leadership, real estate investing, entrepreneurship, and finance. His 5 privately held companies have annual revenues exceeding $100 million. In addition, Cardone is a savvy private multifamily investor and maintains a portfolio of over 3,800 apartment units throughout the U.S., with transactions valued at over $500 million.
It’s a departure from our recent investment ideas involving cryptocurrency and blockchain technology. Grant Cardone is very much a believer in buying and holding multifamily real estate. He means actual tangible brick and mortar properties. He was successful in other businesses before the current Multi-family Housing business. He does so well now.
To start with, he says you should be a success in your own business and have $100,000 to invest in a large property with dozens if not hundreds of rental units. When you buy a duplex of a four-plex, the bank will look at it as a house and compare its value to homes in the area. If the property is one hundred units, the bank is going to have different criteria for lending. They stop treating it like a family home and treating it like a business. For example, the banker will start asking questions like, who is your management company?
The amount of effort he puts into research is daunting. He looks at every detail of a tenant’s experience living in the property to make sure it is a place people will want to live. He looks at access to transportation, shopping, even the closest gym, and daycare center. He compares the last years’ income to the previous 10 years. He becomes an expert in the living, breathing reality of the property he is looking to buy. This is another reason he only looks at prominent properties. It takes him as much effort to research and understand 400 unit properties as it does to study a 4 unit property.
“Success is your duty, obligation, and responsibility.” | Grant Cardone
He works very hard to cover all his bases when choosing an investment. Again and again, he asks himself whether I want this deal. He must walk away from anything that is a problem. He says himself that he does not lose money. Investing at this level is rewarding only if you do it right.
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As CEO of the #1 Sales Training Platform in the World, Cardone consults with Fortune 500 companies and customers such as Google, Northwestern Mutual, Morgan Stanley, and more. In addition, he’s a Top 5 Social Media Expert and one of the Top 10 Most Influential CEOs today. He is also the Executive Producer and star of two reality TV shows and creator of the first online entrepreneur and business TV network, Grant Cardone TV.
