Ep 146: Looking to the Future with Dovid Preil
While working with single-family residential mortgages, Dovid Preil, our guest on today’s show, witnessed the difficulties that so many people experience when trying to enter the housing market. He believes that there is no bigger driver of wealth than real estate, so he made it his goal to help more people get into the industry. In order to achieve this, he founded a company which pulls capital for diversified, quality real estate investments in the multifamily space. Dovid shares with us some of the important learnings he has had throughout 20 years of investing experience, including attributes to look for in potential partners, elements that decide whether or not he invests in a deal, and why he so strongly believes in maintaining a diverse portfolio. We discuss some of the advancements that will likely have a big impact on real estate in the future, and Dovid offers his opinion on the work-from-home trend and what this means for offices. This interview is full of insightful information, don’t miss it!
Key Points From This Episode:
Current real estate prices in New York, and what is bringing about this rising trend.
Years of salary that are required to buy a house in America versus in Israel.
The importance of understanding where your money is coming from is vital, and how this links to the 2008 crash.
Dovid’s desire to help people get into real estate, and why he decided to start his business in America rather than Israel.
Transitioning from single-family mortgages into commercial and multifamily; how Dovid did it.
Attributes that Dovid and his partner look for in other potential partners.
A key rule when investing in real estate.
Factors that determine IRR’s.
Dovid explains what a noncumulative preferred return is.
How Dovid determines someone's operational capabilities before entering into a deal with them.
Examples of the key elements that Dovid likes to see in quarterly updates.
Dovid’s opinion about the work-from-home trend, and what he thinks it means for the future of offices.
One of Dovid’s biggest concerns for the future.
Why Dovid is excited about the potential in the retail market at the moment.
Cap rates; Dovid shares stories about what he is seeing, and elements that people often don’t talk about.
Diversification is key to Dovid’s strategy.
Advancements that Dovid thinks that all real estate investors should be considering and preparing for.
“One of the first rules I learnt when I started investing actively was that you have to understand where your value is coming from, you have to understand where your money is being created.” — Dovid Preil [0:08:53]
“Over the last 100 years, there's probably been so single driver of wealth quite like real estate.”— Dovid Preil [0:09:36]
“The rule in real estate is that you make your money on the buy.” — Dovid Preil [0:16:22]
“Having tenants love the place they’re living is really good business, and it really impacts the bottom line.” — Dovid Preil [0:30:52]
“People don’t want to work from home, they just don’t want to commute. Therefore, the big winner in this is going to be suburban offices.” — Dovid Preil [0:35:05]
Links Mentioned in Today’s Episode:
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