Are you hearing about the real estate debt you can buy and get ten percent on your money? I am. No, thank you. I hear it all. I’m Your Survival Guy. I get the offers, too. I don’t like risk. I’m fine collecting the interest on the full faith credits in treasuries.
It’s funny (not that funny) how, not too long ago, in a zero percent world, two percent was a decent deal. Now, everyone wants more. Not me. I want my money-back guarantee. I don’t want “great deals” in my portfolio. I remember the brutal markets where it all fell down.
“Oh, this is prime real estate,” they say. “It’s diversified.”
“Really?” Your Survival Guy asks.
Just because there’s a group of lesser credits doesn’t mean it’s that much safer. It just means there’s a credit inequality compared to treasuries. I’m not a big fan of diversity, equity, and inclusion of weaker credits. Not with my money.
It never ceases to amaze me how investors put big money on the table for a measly percentage point or two. OK, even five percent. No, thank you. I want many multiples of return.
Risk can be hard to see. It’s like getting one’s mind set on a new car. Once you’re in love with it, there’s no turning back. We sell ourselves into the driver’s seat. The internet gives us more information, but emotions still drive the deal.
Action Line: This is not an environment for risk seekers. Hold the line. If you need help, I’m here.
