Street Smart Success

Finding great deals in this market can require investigating different geographies and possibly different asset classes. Although most Real Estate has encountered major challenges and headwinds, prices are still too high and generate insufficient cash flow. Robert Nelson, Managing Member of Permian Flex Capital, 1031 exchanged one of successful Self-Storage facilities in Northeast Pennsylvania into a small industrial building in Midland, Texas at over a 9 cap entry point, thereby generating strong in-place cash flow. Midland-Odessa, Texas is a rapidly growing market with very limited new construction to compete with. 

Managing a lot of private investments can be cumbersome with the amount of paperwork, reporting and tracking involved. Having them on one central platform, however, makes life a lot easier. That's what Vyzer does. It houses all your investments in one place. Vyzer also provides valuable statistical performance data across a cross section of $30 billion invested in deals and sponsors currently on Vyver's site. Litan Yahav, CEO of Vyzer, is also an experienced LP investor. Litan has learned that despite countless resources on how to vet operators and deals, who you actually invest with is the most important part of the decision. Proformas are helpful, but the differentiator is the operator. 

Passive investing is not always east. It's harder, more time consuming, and riskier than most people think. It takes evaluating dozens, even hundreds of General Partners and deals to learn the difference between a good and a bad opportunity. There is so much to learn, that often more time is required of Limited Partners than they have to spend. Unfortunately, this elevates the risk of making private Real Estate investments. Alexsey Chernobelskiy is Founder and CEO of GP/LP match, a website where GPs submit investment opportunities and LPs receive deals matching their criteria directly via email within minutes. 

We're in unprecedented times. The U.S. is printing more money at a velocity that is unprecedented. We are spending more on money paying the interest on our debt than on our military, and interest rates are low by historical standards. Where to safely invest money is becoming a more difficult challenge by the year. Even hard assets like real estate can be risky because of tax exposure. Isaac Bennett, Founder of You Are, is investing in land development for data centers as a low-risk hedge. Isaac has also invested in other asset classes including multifamily as an LP and GP, and has learned the hard way the importance of working with top-notch operators.

As the demand for Class B office space plummets, the prices for these assets decline with it. These properties are often in Class A neighborhood locations in cities people love to live in with limited residential supply. Randy Kenna, Managing Director of Stanton Park Investors, is converting a 1986 Class B office building into 30 condominiums in Alexandria, Virginia, an 18th century enclave right outside of Washington D.C. Randy specializes in converting obsolete buildings into modern housing in the D.C metro. These conversions are complex and require institutional expertise in financing, operations and execution.

Many multifamily markets have been struggling, but not all. New Hampshire, for example, has been doing extremely well for a number of years, and continues to outperform many markets. This is because New Hampshire continues to experience employment and population growth, and there's been almost no new supply for decades. Renters have left Boston and migrated north to New Hampshire for lower rents, no sales tax, and no income tax. Axel Ragnarsson, founder of Aligned Real Estate Partners, buys 10–50-unit value-add apartment buildings in Southern New Hampshire directly from sellers, and has achieved a stellar track record with buying at a discount and vertical integration.

The past few years have been brutal for multifamily. Higher interest rates, dramatically higher insurance costs, taxes, materials and labor, coupled with declining rents, have plagued the industry. Many properties are underwater, causing losses for investors. As a result, it's become very difficult to raise money for new deals. Over a longer-term horizon, the forecast for multifamily remains strong as new supply gets absorbed and more people rent, but the past few years have been tough. Jordan Fisher, Principal of Next Wave Investors, is a strong multifamily operator who owns 2500 multifamily units in the western U.S. Jordan discusses the challenges of multifamily and the state of the current market. 

Jim Boad is a no-nonsense entrepreneur on a mission to transform lives through housing. As the founder of Shelton Housing First, he's launched over 14 recovery homes in the last two years, with eight more on the way. People move into recovery homes when they leave short-term treatment centers, and there aren't nearly enough of them. Therefore, many of these homes have waiting lists. They're rented out by the bedroom, typically with two residents per room. As a result, they generate vastly more income than typical single-family homes and generate considerable profit. Jim Boad has also authored “Group Home Accelerator”, a book that teaches others how to get into this growing business. 

Developing properties from the ground up is more profitable than acquiring existing properties, but entails far more expertise and risk. For starters, the approval and entitlement process is complex, and these projects generally take at least three to five years from approval to completion, and often longer. Many things change in this time frame from borrowing costs, the economy, plus labor and material costs. Very few operators have the expertise to both develop and acquire existing properties.  Whereas conventional wisdom anticipated the death of retail twenty years ago, ecommerce has plateaued at 16%. Grocery anchored centers, in particular, are thriving. John McNellis, a seasoned developer, investor, writer, and lecturer, has over forty years experience developing 100,000 s/ft grocery anchored shopping centers withing a two- hour drive of where he lives in Palo Alto.

Although prices on multifamily have come down from their peak more than at any other time in recent history, they still have more to go before they present a good buying opportunity. Rents have not risen, interest rates have not been lowered as anticipated, and oversupply persists in many markets. Yet prices are not reflecting these headwinds. Senior living, on the other hand, can generate 8% yield year one with significant upside. Kent Eichanas, CEO of Stackstone Ventures, has acquired several off-market Senior Living facilities in secondary and tertiary markets and is generating big returns for his investors. While cap rates are starting to compress, Kent remains disciplined, avoiding the overpayment trap that plagues snew private equity players and REITs.

While new multifamily development grapples with high construction costs and elevated interest rates, stabilized, newer construction assets can be acquired for significantly less than replacement value. Michael Zaransky, a four-decade veteran in the multifamily space, buys properties from merchant builders who face construction loan maturities or investor pressure, leading to forced sales. These acquisitions not only achieve a low-cost basis, de-risking the investment, but agency financing from Freddie and Fannie provides positive leverage from day one. Michael explains how a deep understanding of market-specific supply-demand dynamics, such as Chicago's unique rent growth despite national trends, allows savvy operators to generate healthy cash flow and substantial appreciation.

Consistent returns are generated when there's scarcity. One asset class that epitomizes scarcity is Manufactured Housing. Not only are new parks not being built, but the supply is also actually shrinking. Drawing on a unique foundation in data analytics and a decade at Capital One, Amanda Cruise applies rigorous financial discipline to acquire and optimize smaller mobile home communities. Amanda details her strategy of identifying off-market opportunities, building direct relationships with owners, and executing targeted value-add strategies across 20-50 space parks in the Southeast. She explains how her in-house management model, combined with a preference for tenant-owned homes, drives stability and mitigates operational risk. 

Multifamily investment advisor Darin Garman returns with his "no-BS" assessment: the market is more resilient than expected, thanks to strong renter demand and savvy operators. Operating in Iowa, Darin details his strategy of acquiring well-maintained, garden-style properties (built 70s-2000s) from "mom-and-pop" owners to unlock significant value through income optimization. He also shares his unconventional, yet effective, month-to-month lease strategy across his nearly 1,500 units. This approach enhances management flexibility, and combined with rigorous tenant screening, results in low delinquency rates. Learn why Iowa's affordable market and landlord-friendly regulations create unique opportunities for disciplined multifamily investors.

Danny Catan, Founder of PIA Residential, returns to share his insights on the current multifamily market. While many have lost money due to variable debt and oversupplied southern markets, Danny explains why disciplined investors are finding opportunities. He focuses on workforce housing in secondary and tertiary markets across the Southeast, looking for properties 30% cheaper than the 2022 peak. Danny details his rigorous due diligence process—going beyond the property to understand local demographics, jobs, and community plans—and how he aims for 7% cash-on-cash returns and 15% IRR (net to investor, with no financial engineering). He also reveals why PIA Residential chooses to be asset managers and not vertically integrated property managers in these diverse markets.

How much you pay, your debt, and staying power determines your success. From 2019-2022, too many people over payed for multifamily properties and utilized floating rate debt. Now many of these operators are under water and unable to hang on to their properties. Christopher Urso, Managing Partner at URS Capital Partners, saw that properties were overpriced at this time and made only one acquisition. He has made twelve acquisitions since January 2024. Over the past fifteen years, Chris has acquired over 5000 multifamily units and generated a 32.9% IRR and a 2.07% multiple. 

The ability to see what others don't can be the necessary ingredient to achieving outsized returns in commercial real estate. Real Estate is a creative business that requires original thinking and an ability to identify compelling themes and recognize upcoming trends. Tom Shapiro, President, CIO and Founder of GTIS, has been a forward-thinking investor in several asset classes both domestically and internationally. Tom has been a successful value-add operator and developer of large multifamily projects, Industrial, Hospitality, and existing single family and build-to-rent portfolios. Tom operates on a large, institutional scale with blue chip partners and a track record of billions of dollars in successful projects in the U.S and Brazil.  

Although prices on multifamily have come down from their peak more than at any other time in recent history, they still have more to go before they present a good buying opportunity. Rents have not risen, interest rates have not been lowered as anticipated, and oversupply persists in many markets. Yet prices are not reflecting these headwinds. Senior living facilities, on the other hand, are generating 8% yield year one with significant upside. Brian Burke, President and CEO of Praxis Capital, has been a multifamily operator for decades and has expanded into senior living facilities over the past year with tremendous success.

When there's a growing industry with a high demand for capital and few sources available, it creates an opportunity for solid risk adjusted returns. A current example is cannabis, one of the country's fastest growing industries. For complex regulatory reasons, banks are not permitted to make loans in this industry. As a result, there's a vacuum for private lenders to make loans to this category at 12-15% interest that can include further upside upon payoff. Chris Reece, Founder and CEO of MJ REIT, is a finance professional with over 29 years of experience, MJ REIT operates with a focus on state-legal cannabis markets, targeting industrial and retail commercial properties. 

Evan Polasky, Director of Capital Raising for Blackgate, reveals how his firm is achieving attractive 7-8% cap rates in suburban retail strip centers. Unlike the crowded multifamily market, Blackgate focuses on smaller community centers with necessity-based tenants like urgent care, dentists, quick-serve restaurants, and tutoring centers. With new construction at historic lows and high tenant demand, Evan explains why the retail leasing environment has "never been easier," offering stable, less competitive investment opportunities. 

While there's still a lot of money chasing most quality real estate assets, great opportunities exist for those willing to take more risk with heavier value-add assets. One of the best examples is office buildings in rebounding markets that are selling at 10 to 20 cents on the dollar. Another example is well-located indoor malls that have rebounded and thriving since the pandemic. Travis King is Founder and CEO of REALM, an exclusive investment collective consisting of 100+ ultra-high-net-worth individuals, family offices, and foundations. REALM is dedicated to direct real estate investing including multifamily, Mobile Home Parks, office and malls. 

Donald Trump campaigned on reducing our national trade deficit. Despite this aim and increased tariffs over his first year in office, however, deficits have still persisted at their previous levels. The U.S government is investing aggressively in A.I. to become the world leader over China in this technology and remain the world's preeminent super power.  Richard Duncan, author of “The Money Revolution, How to Finance the next American Century,” has a prescription for future growth and prosperity that entails investing in industries and technologies of the future that will cement U.S. geopolitical preeminence. Richard is also the publisher of Macro Watch, a video-newsletter that analyzes the forces driving the economy and the financial markets in the 21st Century.

Distress has emerged in the multifamily space. Lenders are taking projects back from sponsors and selling them for the debt or even taking losses in many cases. As a result, some great deals are being made by sponsors to capitalize on these situations and acquire solid workforce properties at a discount. David Lilley, Founder & CEO of Reap Capital, is acquiring 80's vintage properties in Dallas and San Antonio at steep discounts. He's also starting to consider expanding into Florida and Arizona. Reap capital is a vertically integrated multifamily operator based in Dallas.

Although many of the southern U.S. markets are oversupplied with new multifamily apartments and facing challenges, midwestern markets are seeing higher occupancy levels and growing rents. These markets have also experienced only moderate expense increases. Harrison Riley, Founder of Glass Beach Ventures, specializes in multifamily in Cleveland and Erie, PA. He buys older buildings from $40,000-$60,000 per unit and implements value-add business plans where he can raise rents up to 100%. He manages properties in-house in order to control all aspects of operations. 

The value of national currencies has always plummeted to zero in the course of history, usually because of money printing and inflation. There has also never been an international fiat currency. This is what the role of cryptocurrency plays and why it is ultimately indestructible. Crypto has no issuer, so therefore cannot be destroyed. It also has finite supply, so will likely continue to appreciate, perhaps significantly. Chris Snook, Managing Partner of Atomiq, helps RIA's, High Net Worth investors, and family offices makes sense of the new world order. Chris helps people build, protect, and maintain their wealth as markets, AI, geopolitics, and blockchain are changing the investment landscape. 

Appreciation is great, but predictable cash flow is what enables a steady retirement. Real Estate funds are a great way to achieve steady cash flow because they're less risky than syndications because of a diversified base of assets. Jay Patel, Founder and Fund Manager of Proptex, helps investors and pre-retirees earn 11% annually backed by collateralized real estate. Proptex has stabilized assets, distressed properties, and debt in the fund to provide liquidity and the option to redeem out of your investment after a one-year hold period. Proptex invests in Assisted Living facilities, multifamily, Mobile Home Parks, and other cash flowing asset classes.

Alternative investments produce more cash flow with less volatility than public markets. This is why money invested in alternative assets have more than doubled over the last decade, from $7.2 trillion to $18 trillion, and expected to grow to $29 trillion by 2030.  Investments like Private Credit, niche commercial real estate, oil & gas, and specialized finance are exploding. Bob Fraser, Co-founder and CFO of Aspen funds, and USA Today bestselling author of Invest Like a Billionaire, has several specialized high performing funds with over 1000 retail investors in search of high-yielding, consistent cash flow with conservative risk profiles. 

Many operators launch funds to achieve scale and create diversification for themselves and their investors. Funds also attract lower cost of capital and achieve operational efficiencies that result in improved yield. From an investor standpoint, funds mitigate additional risk because of compliance requirements and third-party auditing. Bridger Pennington, co-founder and CEO of Fund Launch, has helped incubate over 400 funds including Real Estate, VC and Private Equity funds. Bridger recently started his own successful GP Stakes micro fund which has generated above market returns.

Many think Private Credit has elevated risks, but the economy is strong and borrowers have healthy balance sheets. One of the least hyped but most interesting areas of credit are special situations and distressed debt. The potential for alpha, mid-teen returns is significant, but it requires precision. Distressed debt requires understanding legal frameworks, financial health, and industry landscapes. Dan Bird, founder of Thornwood Hill LLP, specializes in credit and alternative asset management. Dan has a proven track record in direct lending, special opportunities, and distressed debt, generating strong returns for his clients. Dan identifies strategic investment opportunities with optimal risk management. 

An asset class that thrives in different economic cycles is student housing, especially at the best colleges. The demand to attend these schools always far exceeds supply. On the operations side, revenue per square foot often exceeds multifamily apartments because leases are done by the bed. Mark Weinstein, President of MJW Investments, has acquired over $1.5 Billion of student housing, over $1.5 Billion of apartments, plus several commercial buildings, industrial, and self-storage facilities over the last several decades.  Mark is currently raising a fund to acquire student housing in the best locations at the top U.S. college campuses in the country.

Most of the problems in multifamily over the past few years have been related to debt. Many operators are now in their second extension phase and not making payments or keeping up with their properties. Several of these have been taken back by the lenders. Lenders are identifying experienced, local operators to take over these properties.  James Eng, “The Professor” of multifamily financing, is the National Director at Old Capital in Dallas. James has helped hundreds of multifamily investors strategize the right debt to obtain and acquire over $1 Billion dollars of properties. James has also been a Limited Partner in 45 multifamily deals in Texas. 

Multifamily investing can be profitable, but it is not without risks. One of the ways to generate mid-teen returns while mitigating risk is to invest in pref equity. As an investor in pref equity, you'll be paid after the first mortgage and before the common equity holders. It's therefore safer than common equity and you'll still get the same attractive tax treatment. Steeve Breton, President of Velocity Capital, is a multifamily operator, developer and loan broker. Steeve also has a pref equity fund for people who are intent on generating cash flow and don't want to take on the higher risk of common equity.

80% of new apartments built in the last ten years are luxury class A. As a result, the supply of B class workforce housing has not nearly kept up with demand. Unless someone can afford to own a home or pay close to $4,000 per month for an A class two bedroom or $1,500 for an A class one bedroom unit, they are relegated to renting a B class apartment. Class B apartments cost 30%-50% less. As $800 Billion of floating rate loan maturities are coming due, great opportunities are emerging to acquire workforce housing for 75 cents on the dollar. Mitch Siegler, Co-founder and Senior Managing Director at Pathfinder Partners, finds smaller deals in the Western U.S underneath the radar of larger institutions that have significant value-add opportunities. 

Supply-demand imbalance drives value in Real Estate. In this country, we have a severe shortage of affordable housing in many markets and therefore high occupancy levels. In the case of Mobile Home Parks, supply is not only not growing, it is actually shrinking because municipalities are repurposing the land Mobile Home Parks occupy for better perceived uses. This is what's creating an undersupply. Nathan Jameson, Founder and Managing Director of ARX Capital, has an incredible track record of buying, improving, and operating Mobile Home Parks in Pennsylvania and surrounding states. He's now raising his third fund and taking his successful formula to markets in the Midwest. 

Although the Southeast and Southwest are still oversupplied with new multifamily units, markets in the Midwest have seen little to no new supply and therefore perennially low vacancy rates. Many of these markets are also growing, which creates a perfect opportunity for multifamily investing, as long as it's with the right syndicator. Justin Spillers, Co-Founder of Real Estate Alpha, has built a portfolio of over 700 units, mostly in and around Toledo and Dayton, Ohio. Real Estate Alpha is a fully integrated operator that does everything in-house from all construction, day-to-day property management, marketing, and leasing. Justin and his partner invest a significant amount of their own capital into all their deals.

When deciding who to invest with, experience is what matters most, starting with the number of deals someone has done. Forty percent of Multifamily operators have done fewer than five full cycle deals. Like anything else, Real Estate takes years, even decades, to master. Elijah Brown, Founder of GoldHawk Capital, has first-hand experience operating multifamily and leverages this experience to help him identify other experienced and proven sponsors for others to invest in. Once he finds a great deal, he negotiates favorable terms for himself and his investors. Unklike in the past few years, great deals are starting to appear.

Alternative assets are getting a greater share of investor allocations as they seek higher yields and less volatility. Pension funds, endowments and other large institutions are directing more dollars to these assets in order to increase overall yields in their portfolios and to hit mandated returns. Kim Flynn, President of XA Investments, specializes in Private Credit interval funds, some of which generate higher than 10% yields. Kim is responsible for all product and business development activities plus the firm's proprietary fund platform and consulting practice.

Capital is pouring into steady, cash-flowing midwestern markets. Investors appreciate the predictable, steady growth and performance of these markets with affordable entry points. This applies especially to supply constrained infill industrial markets with big tenant demand and consequent high occupancy rates. Geoff Stuhr, Principal at Smart Asset Capital, specializes in Class B infill industrial properties in Southeast Wisconsin. Geoff only buys positive leverage, cash flowing properties that have value-add components that allow for enhanced cash flow and appreciation of the assets.

An interesting asset class that lends itself to significant value creation through entrepreneurialism and creativity is boutique hotels. Each property is different, so there's intrinsic inefficiency. Many of these properties are also owned by baby boomers who have no succession plans and have not maximized their value over the years. Unlike branded hotels, there's more opportunity to create special guest experiences that ultimately enhance revenue and generate long-term loyalty. Tom Bono, Managing Partner at Bono Capital Group, started out with AirBnb's, and is now in contract to acquire his first boutique hotel in the Hamptons, a market he knows well.

Although it may seem like public companies such as Exxon and Chevron generate the lion share of our domestic oil production, they only produce roughly 30%. The other 70% is produced by smaller to mid-size companies. Many of these enterprises raise money via syndications from Private Equity, family offices, and High Net worth individuals. Depending on the size of the project, investment minimums can be as low as $25,000-$100,000 and have the potential to generate returns that far exceed those of other alternative asset classes. Michael Tanner, Co-founder and Managing Director at Sandstone Group, provides financial consulting and Asset Management for Oil and Gas and Energy clients.

It's no secret that AI will revolutionize the world. Elon Musk thinks computers will overtake humanity as the collective intelligence of AI exceeds that of the collective intelligence of humanity. In the short and immediate term, the truth is probably more muted and will take longer than many expect. Thus far, most companies that have tried to integrate Applied AI technology into their businesses have not been successful and have replaced relatively few employees.  Ben Tasker, a recognized leader in AI education and workforce transformation, is helping thousands of employees upskill and reskill in the international workforce to become data and AI fluent.

Although multifamily is facing major headwinds with operators who took on floating rate debt combined with oversupply and unprecedented expense increases, this is not the whole story. Some multifamily investors who took on less risk and are better and smarter operators are doing quite well. Michael Pouliot, Founder of Carbon Real Estate Investments, has built a 3000-unit portfolio of 1970s and 80s workforce housing in the Southeast in great school districts with higher income, reliable tenants. Carbon Real Estate Investments is a fully integrated company that manages all operational aspects of the business in-house.

Investing in private market offerings outside of public stocks or funds can offer diversification and better returns, but these vehicles are often inaccessible to retail investors. There tend to be high minimums and restricted access to these opportunities. To provide this access, a number of investor organizations exist that pool their member's resources to meet investor minimums and provide access. One of these organizations is Long Angle Management. Matt Shechtman, CEO at Long Angle Management, has vast experience operating and investing in private companies. Long Angle offers High Net Worth members curated investment opportunities, peer insights, education and networking.

Industrial properties were at 80% occupancy and selling at 5 cap rates pre-pandemic. Now, they're over 90% occupied and selling at 8.5% cap rates. With interest rates most likely coming down, this represents a great opportunity to invest in industrial. Warren Buffet says never bet against America, now is a great time to invest in industrial properties. Judd Dunning, President of DWG Capital Partners, is raising a fund to acquire single tenant Sale Lease Backs from profitable companies with strong balance sheets and excellent credit. Conservative asset level underwriting, plus the diversification of a fund make this a safe investment with long-term leases and predictable returns. 

Buying at a discount is the most dependable way to make money. Suburban office is one of the few examples left where you can still find considerable value. In some markets, you can buy these properties for as little as $10/ft where it costs $200/ft to build. What's more, you don't have to find off-market deals, they're listed publicly on LoopNet, Crexi, and other listing sites. As workers have moved to the suburbs and left downtown districts, they've chosen to work closer to home. As a result, many suburban office buildings are at 90% occupancy.  Ken Naim, founder of Beacon One Capital, has acquired cash-flowing suburban office properties and also buys industrial buildings in smaller markets.

Investing in NNN fast food franchises and limited-service hotel Real Estate is a great way to profit from steady operating businesses. Joe Tagliente is Managing Partner of Tage Capital Partners, a firm founded in 1970 with a single restaurant by family patriarch, Joseph P. Tagliente.  Tage Capital has grown to become a leading hospitality company in New England. Today, Tage Capital is one of the largest privately held, hospitality real estate investment groups in the United States with net-leased investments in quick service restaurants, casual dining restaurants, and hotels.

Despite ample sentiment to the contrary, we may not be headed into a recession any time soon according to at least one well known, respected economist. In fact, we're just four years past the pandemic, and we're seeing steady, conservative growth. As far as AI disruption, and potential unemployment that may result, this may occur slower than many people think.  Peter Linneman, Principal of Linneman Associates, is a prolific multi-decade investor and founder of Wharton's Real Estate Department and the Zell-Lurie Real Estate Center. Peter Is bullish on the U.S. economy and it's growth prospects for near future.

One way to generate large, short-term profits in Real Estate is flipping houses. There are many methods to finding great deals, and the money to acquire these properties is readily available when the deals make sense. You can find houses via auctions, wholesalers, or tried and true direct marketing efforts like flyers, Direct Mail, driving neighborhoods, even knocking on doors. Dan Cantillana, or Dan Can, is a successful insurance broker in Spokane, Washington who has expanded into flipping 30-40 houses per year over the past several years.  

Nothing has caused more loss of principal in Real Estate than too much debt. Leverage works great in an upward trending market, but it cuts the other way in a downturn.  Joel Friedland, Principal of BRIT properties, has been buying infill industrial properties with all cash since learning the hard way during the 2008-09 financial crises. Joel and his investors are seeking conservative investments with the primary goal of capital preservation. He buys highly sought-after properties that appeal to both owner-users and tenants. Joel specializes in industrial properties in Chicago that deliver 7% unleveraged returns.

AI will change the world even more than the internet, with profound implications for most aspects of society, including massive wealth creation. It will impact many sectors of commerce, including Real Estate. Amongst other implications, AI is creating an insatiable demand for Data Centers and a scramble for computing power. Peter Lewis, Chairman and Founder of Wharton Equity Partners, has over 35 years of experience as a real estate owner, developer, and operator, and is now merging with Lighthouse, a turnkey developer of Data Centers. The founders of Lighthouse formerly led Midwest and Western data center development for Amazon Web Services.

For fix and flip entrepreneurs of single-family homes, it's hard to get financing from traditional lenders. This lack of access to capital creates a market for private lenders who have the flexibility and access to capital. It's a win-win for borrowers and lenders. Borrowers get capital to fund their businesses; lenders make a healthy return for making these kinds of loans. Investors who invest in hard money funds also do well, earning sometimes as high as high teen returns. Matt Medrano, Co-founder and CRO of Dynamo Capital, has a growing fund of hard money loans, mostly in Wichita, and is expanding to other Midwest cities.

Although cracks are starting to appear in various commercial real estate asset classes, prices have still not come down enough to be investible. Prices have come down, but they've come down off record highs and lenders are still conducting workouts with sponsors. If we continue to see significant job losses, and recession ensues, prices may eventually come down enough to make sense for cash-flow investors. Jeremy Roll, a full-time passive investor, left his steady corporate job in 2007 and has lived 100% off the cash flow ever since. Jeremy has been in over 250 passive investments.