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In this episode, Michael Klein talks about the principles and keys to investing in the present economic state. Some of the key points mentioned were how smart and talented people overpowered real estate experts in terms of unique and successful investments. For Klein, deals are not found but created and that is what he highlighted in his recent book, “How to Make Sensible Investments in a Senseless Economy: Six Proven Steps to Prevent Financial Disaster.”
Key Takeaways/Main Points:
In this episode we discuss….
1. “The basis of the book is to try to manage through a process that you can repeat time and time again, that causes you to have, good answers.” (4:02)
2. “If I’m doing business with smart people that are really talented at what they do, I’ve mitigated substantially all my risks, not all of it, but, but a big chunk of it.” (8:13)
3. “So if you don’t think real estate takes talented people, I think you’re mistaken.” (13:54)
4. “We’re in this weird quasi world of capitalism meets socialism.” (19:26)
5. “Retail is bad if you’re not a great operator” (25:24)
6. “And it’s a great way of taking something that already exists, already has lots of plumbing, already has lots of electrical and converting it. So, I think that that’s a pretty creative, reuse of something. It’s not super unique, but it’s done” (30:08)
7. “That has nothing to do with the real estate. That had everything to do with the people, the real estate was just sitting there” (33:56)
8. “Deals are not found. They’re created” (34:03)
9. “The United States at the end of World War II had debt levels that were similar to where we are now. And we worked our way.” (36:55)
10. “So we were producing a product that would cause us to generate the money necessary to pay down debt” (38:22)
11. “How to Make Sensible Investments in a Senseless Economy. It’s six proven steps to prevent financial disaster by Michael Klein and Stanley Kafka” (45:06)
For more fascinating stories of the alternative investment world and to learn the 6 fundamental questions investors should ask to decrease risk in any economy and market read Klein’s book now available on Amazon: How To Make Sensible Investments in a Senseless Economy.