Issue #5 - There has to be a story

Buen dia! We had a lovely time in Mexico City visiting my family and are now in San Miguel de Allende for a wedding on Mj's side - an amazing and vibrant group of Venezuelans.

For a long time, I pretended (believed?) that I was a 7/10 in Spanish. I even put it on my resume. What a load of crap! 

Sitting around a dinner table with jokes, nuance, and sarcasm flying around, you quickly become humbled. 

Gives one incredible appreciation for immigrants of the world fighting to speak English in the face of impatient people in the grocery store lineup - you try learning a language! 

Anyway, vámonos. 

1. Personal Finance

Prioritize yourself:

• Exercise - do pushups, run, etc
• Health - drink water, eat well, etc
• Money - pay yourself first, etc

Because money flies out the door for necessities (shelter, clothing, food, taxes) and fun (entertainment, trips, etc), you find it hard to save money at the end of each month. 

Instead, put yourself onto the top of the pecking order and pay yourself first. 

Implement an automatic "sweep" system: upon receiving your next paycheck, move a portion directly from your checking account to your investment account.

The key word here is automatic. Start with 10-15% of your monthly income, then adjust from there to suit your budget. 

Once you've taken care of numero uno, you are healthy and ready to spend the on housing, food, and fun with your loved ones without worry.

2. Stock Markets

A picture is worth a thousand words:

3. Real Estate 

This is what I do in Real Estate:

I acquire Canadian Commercial Real Estate for a high quality Real Estate company, Narland Properties, and our Limited Partner investors. 

I am also part of a family investment company - 11 cousins are equal shareholders - we have grown our equity at a CAGR 23% since inception.

We target Value Add transactions across all asset classes and geographies that have minimum ~12-15% annualized net-to-LP investor returns. 

What is Value add? 

Identifying an asset that is not performing at its full potential, ie:

• poor tenant mix
• under market rents
• under-utilized space
• in need of capital or facade improvements
• identifying PAD/development opportunities
• etc

We don’t just buy a cap rate deal and “hope” the value increases. Because hope is not a business plan. 

Each asset we invest in must have a clear path to increasing the income generated by the property.

Therefore, value increases.

Always remember, just because something is for sale, doesn’t mean it should be bought.

There has to be a “story”.

——If you are an investor and want to generate passive income with capital appreciation potential, send me a note. 

1 Quote

“Just because something is for sale, doesn’t mean it should be bought” 

-anon

A Question  

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Thank you

Eddie Gudewill, CFA

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