RG 089 – The 4 Buckets YOU need for a TRULY Diversified Investment Portfolio with Abhi Golhar
- Abhi is the host of the Real Estate Deal Talk podcast
- He is a partner at Summit and Crown
- He has a background in electrical engineering
Nuts and Bolts
Abhi runs Real Estate Deal Talk where he hosts podcasts, videos and writes articles about real estate investment. He’s also a managing partner of Summit and Crown, an investing firm in Atlanta since 2002. He has a background in electrical engineer but while he was studying he picked up all the popular books by Kiwinuka, Buffet and Rockerfeller and realised that the common link was real estate investment. He started investing at college while he was a student when he realised that no one was going to take care of his financial future except for himself. He started a side business selling retro US muscle cars on Ebay to Australians and with this he leveraged enough money to start investing in real estate.
Abhi looks after his financial future by diversifying his investments, he calls these the four buckets. First is stocks and bonds, second is real estate, the third investment is into new businesses and finally into non-profits and charity work. Each bucket has a percentage of active and passive investment. Abhi invests capital back into his exchange traded funds and real estate and any excess goes into performing businesses. Looking more closely at the real estate bucket Abhi splits this into single and multifamily investments. The single family homes are flips and buy-to-holds in Atlanta, Charlotte and Alabama. At his investment firm Abhi is in charge of the flipping machine where he takes control of capital and acquisitions and focussing on where the market is going.
Abhi is looking at Atlanta, Charlotte and Birmingham because these are the places he sees the most growth happening and opportunities for flips. Atlanta leads the pack for growth with Charlotte just behind on a 2.5year delay. Abhi recommends that you can get a better yield in the secondary and tertiary markets although you have to be careful where you buy and make sure there are good transport links. Also when looking at a market make sure to lok at jobs, the local government, investors, and the uhaul index to see how many people are moving and renting in the area. Abhi uses the capital from the flips to feed the rental purchases. Abhi also invests in multifamily housing and has just finished raising for a 200 unit complex north of Dallas. When he’s flipping properties he works with other investors but when he’s doing buy and hold he works on his own.
If you are planning long term cash flow then the key is diversifying your assets and investment buckets. Abhi invests in businesses that provide yield and spends a part of each day looking for businesses to partner with or bring cash to. An example would be a small business that he partnered with purshing USPS brand offices which has yielded $350,000 a year in positive cash flow. Business investing is passive, you aren’t going to get major money like you would with a property flip but it’s a back seat low yield constant income stream.
- Most important habit – Partnering with other people
- Most influential person – His business partner Walt
- Most important tool – Podeo and Slack
- Most important failure – Losing $50,000 and having to recover and learn
- Contact – realestatedealtalk.com