Buying for the Long-Term with Howard Marks

Jake and Gino Multifamily Investing Entrepreneurs

Jake & Gino

Buyingapartmentbuildings, Investingsmart, Multifamilyrealestateinvesting, Business, Smartinvesting, Jakeandgino, Apartmentinvesting, Investing, Commercialrealestateinvesting, Makingmoney, Buyingrealestate, Realestateinvestment, Wheelbarrowprofits, Realestateinvesting, Cashflow

5 • 831 Ratings

🗓️ 9 March 2022

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

In this episode, Jake and Gino unravel the concept of Long-Term Personal Financial Engineering. Think of financial planning for your future as “Personal Financial Engineering.” They talk the ‘buy-low, sell-high’ strategy that most investors try to apply when planning for the future, and the dynamics involved in when the opposite happens- buyers end up buying high and selling low. It’s very challenging to maintain to a long-term mindset when so many things in our lives feel unstable and unpredictable, but we have to stay focused on our goals and refrain from having “get-there-it is,” as Jake calls it. Jake and Gino believe that long-term success with Multifamily relies on informed decision-making and a practical understanding of the three pillars of real estate: market cycle, debt and exit strategy. The duo also discuss the ways you can leverage Whole Life Insurance in your long-term financial plan, and how a 100 Year policy can be used as a cash management tool. 00:00 Introduction 04:11 Listen to the older person's advice 07:50 What is wealthy mindset all about 11:34 Transactions pay the bill, equity makes you rich 14:00 Whole life policy as a cash management tool 16:30 Wrap-up Want to learn more? Check out our well-curated resources on https://100yearrei.com/resources/ BONUS Resources: Check out our mini-course on Whole Life Insurance for Real Estate Investors: https://100yearrei.com/whole-life-mini-course/ NEXT Step: If you want to learn more on why should add a cash value Whole Life Insurance Policy to your financial plan (and even the plan for your business or children), get in touch with our Team here: https://100yearrei.com/callnow/ About The 100 Year Real Estate Investor The Whole Life Insurance Policies offered by the 100 Year Real Estate Investor are specially-designed. This means they work harder toward achieving your financial objectives, no matter what they may be. Check out this blog for 7 facts about our specially-designed strategies that may not be true about typical whole life policies: https://100yearrei.com/7-facts-about-specially-designed-whole-life-policies/ About Jake & Gino Jake & Gino are multifamily investors, operators, and mentors who have created a vertically integrated real estate company that controls over $100,000,000 in assets under management. They have created the Jake & Gino community to teach others their three-step framework: Buy Right, Finance Right and Manage Right®, and to become multifamily entrepreneurs. #wholelifeinsurance #financialplanning #realestateinvestors #personalfianance #wealthbuilding Jake & Gino Facebook: https://www.facebook.com/jakeandgino/ Jake & Gino Twitter: https://twitter.com/JakeandGino Jake & Gino Linkedin: https://www.linkedin.com/company/jake-and-gino-llc/ Jake & Gino Instagram: https://www.instagram.com/jakeandgino/

Transcript

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0:00.0	Hello, ready, welcome to the 100-year real estate investor.
0:09.1	We're your host, Jake and Gino, and this is the show dedicated to long-term personal financial
0:13.7	engineering.
0:14.5	The G-Dead and I recently read a memo by Howard Marks of Oak Tree Capital, titled Selling Out.
0:24.1	Now, really like this one. It resonated with us because, in our opinion, Marx really has long-termism. He has that long-term mindset. And again, we're talking
0:30.1	Howard Marks, not Carl, okay, distinct difference here. He discusses the basic idea of how everyone in financial, you know, personal finance, financial sales and things like that, whatever you're in, it's always investing, buy low, sell high. And it's like the four, you know, the four word mantra that everyone uses, but he actually challenges it. And, youino, I want to hear your perspective first, before we
0:56.1	break this down, onto why there may be some issues with buy low, sell high.
1:02.3	Jake, I'm really glad that you asked me that question, because I've been ponding this over the
1:05.8	last 15 or 20 years of my investing career. And I've been trying to time the market. Back in 2018 and
1:12.6	2019, Jake and Gino are starting to buy assets. And we're hearing that the market is hot.
1:17.7	2020. Roe, multifamily. We're at the high point. 2021. Same thing. 2022. Do you know how you can tell
1:24.8	when you've hit the top of a market? I want you to look back and go, oh, that was the top of the market. There is no possible way ever to be able to time the market. And if you think you can, you're going to make a big mistake. Now, this is what's happening. When people say buy low and sell high, what really happens is they buy high and they sell low. And I'm going to throw this
1:45.7	out there to anybody. And I'm going to get probably a lot of hate mail. I haven't gotten hate mail in a while,
1:49.8	but please don't show me this BS that stock market has returned 8% over the last 40 years.
1:55.8	How many people out there have actually kept their money in the stock market for the last 40 years
2:00.2	and not pulled it out when they've seen stock market for the last 40 years and not pulled
2:01.1	it out when they've seen the market go to 8,000 and go back up to 30,000. It's true. If you're
2:06.4	going to follow Howard Marks's strategy, you possibly could. But how many out there when you hit a certain
2:11.8	age, you need to pull money out of retirement? If you were in 2008 and all of a sudden, you're at a high point, oh, I'm going to retiring and you lose 30% of your equity. And now you still have to start
2:21.7	cashing in your stocks. That 8% is null and void. It's gone. So that's really, really important.
2:27.0	Don't look at those numbers. It's 8%. Now, obviously, if you need to sell for some type of capital
2:31.8	event, we should talk about this. If you need to replace it and put it into a different asset, that's understandable. You have a different opportunity.
	...

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