• The US and Ukraine signed a deal for American companies to access essential natural resources.
• The agreement includes aluminum, graphite, and oil projects that could boost tech and defense.
• China's export restrictions on rare earth elements have heightened the deal's strategic importance.

The US and Ukraine struck a major deal granting American companies privileged access to key natural resources in Ukraine — including aluminum, graphite, oil, and natural gas — that could boost the tech and automotive sectors.

Ukrainian Deputy Prime Minister Yulia Svyrydenko and Secretary of the Treasury Scott Bessent signed the deal in Washington, DC, on Wednesday.

"This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term," the Treasury Department said in a press release. "President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides' commitment to lasting peace and prosperity in Ukraine."

The Wednesday press release added that this economic partnership positions Ukraine and the US to "work collaboratively and invest together" to ensure that "our mutual assets, talents, and capabilities can accelerate Ukraine's economic recovery."

Ukrainian Deputy Prime Minister Yulia Svyrydenko said on social media, "Together with the United States we are creating the Fund that will attract global investment into our country."

Bessent later said in a video statement that the deal would help "unlock Ukraine's growth assets."

Trump's trade war heightened the importance of a deal with Ukraine

The agreement comes at a time of rising supply chain uncertainty under an ongoing trade war with China, where 90% of the world's current rare earth metals are sourced from.

As of April 4, China has restricted exports of seven rare earth elements and related materials in response to Trump's tariffs, potentially affecting critical industries like defense, energy, and automobiles.

Ukraine possesses a rich array of natural resources that are of growing importance to the US. Graphite, lithium, and titanium are vital for EV battery production, solar panels, and military equipment, while high-purity neon gas and rare earth metals are critical for semiconductor manufacturing under rising demand for artificial intelligence.

The minerals deal was originally due to be signed on February 28, but Ukrainian President Volodymyr Zelenskyy's visit to Washington ended in acrimony.

The agreement was signed just days after Trump and Zelenskyy met in person on the sidelines of Pope Francis' funeral, as cease-fire talks between Moscow and Washington continue. Trump on Wednesday called their face-to-face meeting a "moment of solace in a sense" in an interview with ABC News.

The White House and the Department of the Treasury did not respond to requests for comments.

• Business Insider has spoken to dozens of financially independent real-estate investors.
• Many of them took a first step that didn't require any money or experience: attending a meetup.
• Real-estate networking events can help connect you with future lenders, agents, or business partners.

Caleb Hommel and Chuck Sotelo knew little to nothing about real estate before investing in their first property. They were only teenagers, after all.

"We had no experience," Sotelo told Business Insider. "We didn't have any credit, we didn't have any money, and we didn't really have any connections."

The friends, who met on the first day of high school when they sat next to each other in a pottery class, started discussing buying property during the pandemic. At the time, they were enrolled in two different junior colleges, but remote learning meant they were both taking classes at home, five doors down from each other.

Without money or experience, they started attending local real-estate investing meetups. At one of those events, someone referred them to a mentorship program called Multifamily Strategy, a paid program that they eventually enrolled in and that would help them build a 28-unit real estate portfolio using other people's money.

Avery Heilbron found himself in a similar predicament to Hommel and Sotelo after graduating from college in 2018. He wanted to own real estate, but didn't have the capital — or a strong enough credit score — to buy.

"I didn't even realize I needed credit," Heilbron, who got his first credit card a couple of months after finishing college, told BI. "So when I was first looking with my agent, I wasn't allowed to have a pre-approval yet because I had no credit score."

Like Hommel and Sotelo, he started with local real-estate networking events. It allowed him to learn the ins and outs of his market, Boston, and get a better understanding of the buying process, so that when he was financially prepared to buy, he'd have the tools to spot a deal and jump on it.

As it happens, it was an agent he'd met at one of the networking events who helped facilitate his first deal. The agent gave him a heads-up on a duplex about to go back on the market after a cash offer fell through, and asked Heilbron if he wanted it before he relisted it. Heilbron, who had strong credit and enough savings for a down payment by then, jumped on the offer.

That first deal would lead to a 14-unit portfolio and enough rental income to walk away from his corporate job.

The power of surrounding yourself with like-minded people — and how to do it

Denver-based couple Jeff White and Suleyka Bolaños, who retired in their 30s when the cash flow from their rentals surpassed their day job income, used Meetup.com to find real estate networking events in their area.

Being in a room with other investors was helpful for a few reasons. It was a space to discuss strategy, such as "house hacking" — living in one part of a property while renting out other units to cover the mortgage — which is how the couple has managed to live for free in their own home since 2017, and 1031 exchanges, a tax strategy they eventually used to exchange one investment property for two and sidestep capital gains tax along the way.

It was also helpful to connect with people who understood their goals and could relate to their challenges.

"You don't feel like this lone person out there just doing things all by yourself," said Bolaños. "That can be really stressful when you feel like you have to do everything yourself, but when you join these meetups, you get to know people, you network with them, you have some kind of an issue, you know who to reach out to. You just have more of a community that's there to help."

If your city or town doesn't have any convenient meetups, consider starting one yourself or look into online communities.

Ludomir Wanot, who built wealth doing wholesale deals in Seattle, joined a Facebook group called WA Real Estate Investing (WAREI) to meet local investors when he was first starting.

He also took advantage of local meetups. That's where he found mentors and asked established investors exactly how they got started and how they expanded.

"Surround yourself with people who know more than you, ask questions, and build relationships with all different kinds of people you meet because you never know when you can work with them down the road," said Wanot.

You could end up shaking hands with your future business partner, lender, or wholesaler — or, like Heilbron, your future real-estate agent holding the keys to your first deal.

• ALT Sports Data gathers data on niche sports so sportsbooks can create bets.
• The company, which works with leagues like Formula 1, just raised $5 million in seed funding.
• Its CMO broke down the company's business pillars that it says drive fan engagement.

ALT Sports Data, founded by GoPro alums Joe Dunnigan and Todd Ballard, announced Monday that it secured $5 million in funding.

The company is trying to expand betting around new and emerging sports like Formula 1. It works with sports leagues and sportsbook operators to provide the data that underpins bets. It's also working on other ways to engage fans of niche sports.

ALT Sports Data competes with big sports data providers like Sportradar and Genius Sports, which work with major leagues such as the NBA and NFL. The startup aims to set itself apart by prioritizing niche and lifestyle sports that its competitors aren't focusing on.

"There are a lot of leagues out there that are not the NFL, the MLB, the NBA, that, quite frankly, I feel have been systemically set up for failure in sports betting because there's just no real innovation or thought put into them," Ballard, ALT Sports Data's chief marketing officer, told Business Insider.

ALT Sports Data works with sports such as Formula 1, which recently made the company its official betting supplier, X Games, and the World Surf League. Sportsbooks like FanDuel and DraftKings use ALT Sports Data.

Ballard said these lifestyle sports have massive fan bases, but not much representation on sportsbooks.

"Why can't we bet on a bunch of these sports like surfing and motocross?" Ballard said.

The company plans to use its fresh funding to create more tools and partnerships to help make sports more engaging.

Eberg Capital and Relay Ventures co-led ALT Sports Data's seed round, including participation from Motley Fool Ventures, Scrum Ventures, and other individual investors.

ALT Sports Data's strategy to drive sports fan engagement

Ballard said ALT Sports Data has four pillars of its business that help drive sports betting and fan engagement.

Its league services include data rights deals, marketing, integrity, and other work with sports rights owners. Ballard said the company has about 25 sports and leagues in its ecosystem, including combat, motor, action, and niche sports.

The product arm supports those league relationships with data science, distribution, infrastructure, and game development.

"How are we driving more meaningful relationships with leagues?" said Ballard. He said, in some cases, the company will build the back-end data infrastructure for a league to support betting.

The company also has a media division with its own affiliate site, NXTbets. The site uses content to direct people to sports betting platforms, similar to what companies like Catena Media and Better Collective do. Ballard said NXTbets has become a "fairly substantial" piece of the business.

The company is also working on creating its own games to expand from sports betting into areas like social, peer-to-peer, daily fantasy, and free-to-play games.

"We're not saying we want to exclusively create games just for us," Ballard said. "We do think we can show how it should be done."

ALT Sports Data is building something for fans who aren't into more popular sports enough to bet on them outside a big event, like the Super Bowl or March Madness. Its approach targets bringing these fans into the sports betting ecosystem in sports they care about, like surfing or the X Games, and then getting them comfortable betting on sports more broadly.

"Emerging niche sports have these massive audiences behind them that are pretty passionate, and give the leagues a new point of engagement, a new opportunity to drive more fans to their sport, and ultimately drive new revenue streams into them," Ballard said.

• Real-estate investors can lower taxes with cost segregation and 179D studies.
• Cost segregation accelerates depreciation, offering significant tax deductions for investors.
• 179D studies can maximize energy-efficient deductions for commercial property owners.

If you own a rental, you can likely lower your taxable income by deducting expenses associated with managing the property.

Business Insider spoke to Kristel Espinosa, a CPA and partner at JLK Rosenberger with expertise in real estate, about tax strategies and deductions that real-estate investors should pay attention to.

Espinosa pointed to two that can help investors minimize taxes on their rental income.

1. Do a cost segregation study to accelerate the depreciation of your property

One major deduction worth strategizing around as a real-estate investor is depreciation, which is the loss of an asset's value.

Investors can claim the value of depreciation as a tax deduction for the entire expected life of the property, which the IRS has determined is 27.5 years for residential buildings and 39 years for commercial buildings. To calculate depreciation on a rental, you divide the value of the property (not including the value of the land) by 27.5 or 39, depending on the property type.

A cost segregation study can help an investor accelerate depreciation by considering all of a building's internal and external components, some of which may qualify for a shorter depreciable life.

"You can now take this huge depreciation deduction instead of having to wait the whole 39 years to get that depreciation," said Espinosa. "You can take a big chunk in those first couple of years and basically put yourself into a loss position because the deduction is so large, and not have to pay any tax — and that loss generally carries over. If you don't need all of the loss in the current year, that loss carries over into subsequent years, so those losses could shelter the rental income from this property for years to come."

A cost segregation study isn't free — it can cost $5,000 to $15,000 — and it can take up to two months, but it could be worth looking into. Espinosa said that it's saved some of her clients over $1 million in taxes.

"I feel like this is often a missed opportunity just because a lot of people don't know about it or maybe they just don't want to pay the fee," she said. "But somebody needs to do that analysis for them and say, 'Hey, this is the fee that you're paying for this cost seg study, but these are your tax savings, so it's up to you if you want to do this or not. Is it beneficial?' And 99% of the time it's going to be a yes."

2. Do a 179D study to maximize the energy deduction

The 179D deduction is for commercial building owners who have certain energy-efficient components.

"A lot of these commercial buildings now, especially in California, are required to be energy efficient to a certain standard," said Espinosa, who is based in Irvine. "But our clients like to go above and beyond that sometimes and put in other energy-efficient structural components within their commercial buildings."

She recommends a 179D study for that type of client. It works similarly to the cost segregation study, in which you hire a specialist to analyze your building and its components.

She said one of her firm's clients recently did a 179D study and "found an easy $400,000 deduction."

"So, it's not a depreciation deduction, but it is a deduction that they're rightfully able to take. It's a federal-only deduction — California does not conform — but still, it saves them dollars, so they may want to look into that a little bit more if the property is an energy-efficient type of property."

The tax savings become more significant if you are a real-estate professional

If you qualify as a "real-estate professional," you could reduce your overall tax liability even more. This status allows you to offset rental against other income.

"Generally, if you're just a regular person like me who has a job as an accountant and is investing in real estate on the side, then the losses that I'm talking about offset the rental income from that property — but I can't take that loss from that rental and offset it with my W-2 income," explained Espinosa.

That's because they're two unrelated activities. However, if she was considered a real estate professional, "it all becomes one big activity," she said. "Those big losses from that cost segregation now can offset the commissions that you earn as a real estate agent or whatever other income you earn in real estate because now it's no longer passive in nature."

Being a real-estate agent automatically deems you a professional, but if you don't have that license, you may qualify if you meet certain requirements, including spending more than 750 hours on real-estate activities.

"I feel like this is an often abused area," noted Espinosa. "You can have other jobs but you just have to be able to show that to the IRS if ever audited that the real-estate business really is your main thing."

She recommends documenting everything, from how you spend your working hours to the mileage you drove to visit properties, even if you aren't a real estate professional: "If you're holding real estate and renting it out and taking deductions on it, you should always document everything and always track your expenses."

If you meet the requirements, "Then, of course, designate yourself as a real-estate professional," she said. "It obviously has huge benefits. But then also be aware that this is a highly scrutinized area by the IRS too, so that's why you want to have your documentation in place."

• Champion boxer Floyd Mayweather Jr. said he purchased a 62-building Manhattan apartment portfolio.
• But there is no evidence there has been a sale.
• The deal is one of several claims Mayweather has made about his real estate that appear exaggerated.

Floyd "Money" Mayweather Jr. earned his nickname by reaping more than a billion dollars during an illustrious boxing career and spending big on designer clothing, palatial homes, and ultra-exotic sportscars.

More recently, the 48-year-old retired champion has sought to refashion himself as a budding business mogul, with interests in liquor, nutritional supplements, apparel, and, increasingly, commercial real estate.

In late February, Mayweather announced his biggest single deal to date, the purchase of a sprawling portfolio of 62 rental apartment buildings in upper Manhattan.

"All the buildings belong to me, I don't have no partners," Mayweather proclaimed in a video posted on his Instagram account that also included a slideshow of him touring some of the buildings. "And all the retail down below, on my buildings, all belong to me. Guess what? You can do the same. It's all about making power moves."

Mayweather posted that his real estate investment firm, Vada Properties, paid $402 million for the properties.

Yet the boxer's bold claims do not appear to match reality. A month after Mayweather's announcement, none of the buildings have changed hands, according to New York City property records, which are usually updated within days of a sale, several experts said. A deal to sell the properties outright to Mayweather does not seem imminent.

The NYC Housing Partnership, a non-profit group that is a partner in a majority of the properties to help them qualify for tax breaks and grants and preserve the affordability of the portfolio's apartments, said through a spokesman that it has not been alerted of a pending sale.

"The Housing Partnership has not been advised of any sale, pending sale, or change in ownership," the spokesman said. "Generally, the partnership would be advised of the transfer and would be party to the transfer. That has not occurred."

A person directly involved in the deal with Mayweather said that Mayweather had purchased a small minority ownership interest in the portfolio, with options to expand that stake over time or acquire the buildings in their entirety. It is not clear if Mayweather will exercise those options. The person asked to remain anonymous to speak about a confidential arrangement with Mayweather.

"Floyd Mayweather continues to be a reliable partner and a great ambassador for affordable housing," a spokesman for Black Spruce Management, the real estate company that owns the majority of the buildings in the portfolio, said in a statement. "To date, Mayweather has performed on all of his obligations."

Meyer Orbach, the chief executive of the Orbach Group, a firm that owns the remaining handful of buildings in the portfolio, according to public records, did not respond to multiple calls and emails.

Asked about acquisition, Ayal Frist, the CEO of Vada Properties, Mayweather's property firm, patched in a man during a telephone call who introduced himself as James McNair, an executive involved in Mayweather's business ventures.

The man's voice, however, was starkly different from existing recordings of McNair.

The person insisted that Mayweather had acquired the portfolio, but declined to discuss details of the transaction on the record. He said that Mayweather had lived in affordable housing as a child and had been drawn to the properties, in part, because they include rent-regulated apartments.

"He felt that it's so cool because: I give back to the community and I make money," the person said. "And once that clicked in his head, he is like, I want to buy it all."

McNair did not respond to calls and text messages.

Lawyers for Mayweather did not respond to requests for comment.

From boxing to New York City skyscrapers

The deal is one of several large real estate investments that Mayweather has touted.

A chance encounter more than a decade ago appears to have helped Mayweather make some high-placed connections in commercial real estate.

At a Knicks game, Mayweather happened to sit next to Jeff Sutton, a major owner of Manhattan retail space, and Andrew Mathias, who was then a senior executive at the large commercial landlord SL Green. The men hit it off and developed a friendship, according to two people who were present at that introduction. Both wound up counseling Mayweather on real estate investments.

In a podcast interview in 2022, Mayweather said that, during his boxing career, with the help of his former manager Al Haymon and "my Jewish friends and my white friends," he initially invested $5 million in commercial real estate and began to net $50,000 a month in proceeds — an impressive 12% return on his money.

He suggested during that interview that he held a stake in One Vanderbilt, a 1,400-foot-tall Manhattan office tower controlled by SL Green.

"I'm a part of that project," Mayweather said, adding incorrectly that the skyscraper is "the tallest building in New York City."

The man who spoke to Business Insider claiming to be James McNair said that Mayweather had invested $88 million into roughly 20 loans that SL Green had originated and that were tied to commercial properties in the city. He said the company lent the money out as mezzanine debt, a type of higher interest rate loan sometimes used in real estate investments.

"It was a nice opportunity for them to make money for Floyd, who they have a great deal of respect for," the person said. "And at the same time, it was also a good marketing opportunity for SL Green to be associated with him."

Alexendra Zarchy, a spokeswoman for SL Green, said in an email: "We don't comment on questions regarding individual investors."

SL Green hasn't disclosed investments with Mayweather in public filings. The company, which is public, typically announces large deals involving the sale of ownership stakes in its assets.

During an investor call in December 2014, Marc Holliday, SL Green's CEO, introduced Mayweather as "somebody who's been a big fan of the company, probably own some shares," according to a transcript of the call by AlphaSense.

"You're the right team, SL Green," Mayweather responded.

Mayweather also recently claimed to have invested an undisclosed sum into 601W Companies, an owner of office assets, according to a report. A call to a senior 601W executive was not returned.

He announced last year that he had purchased a stake in a portfolio of luxury rental apartments owned by Black Spruce Management and the Orbach Group — the owners of the uptown Manhattan portfolio.

On his property website, Mayweather lists 1196 Avenue of the Americas among his holdings. Ownership of the building, a three story property in Manhattan's Diamond District that is filled with retail tenants in the jewelry business, also has not been sold, according to property records.

"That hasn't closed yet," the man who claimed to be McNair said.

A close associate with a checkered past

Mayweather has credited another executive — one with a less reputable past — with propelling his business career.

"A close friend of mine, Jona Rechnitz, a great guy, great person, helped me a lot," Mayweather said during a recent interview on Fox News to promote a new sports supplement line.

Rechnitz pleaded guilty and served as a government witness in a federal criminal corruption case against Norman Seabrook, then the head of the Correction Officers' Benevolent Association, a union that represents jail guards in New York City.

Rechnitz admitted to delivering a bribe to Seabrook, who then placed $20 million in correction officers' pension money he controlled into a hedge fund managed by a friend of Rechnitz's. Nineteen million dollars in funds were later lost in the investment. Rechnitz was ordered in federal court to pay restitution to the union and has given back about $1.2 million dollars, according to his attorney. Seabrook was convicted in 2019 and sentenced to 58 months in prison. He served less than two years before being released.

Rechnitz's sentencing was vacated in 2023 when an appeals court found that the judge in the case had had a conflict of interest. He is due to be resentenced in June.

• Robinhood plans to launch online banking, which it says will include perks like home cash deliveries.
• The service will offer a 4% annual interest rate, Robinhood said in its announcement.
• Robinhood is also launching a wealth management platform and AI investment tools.

Robinhood said on Wednesday that it is launching an online banking platform for its premium members in the fall, which will include home cash deliveries.

In an announcement, the California-headquartered financial technology company outlined a number of incentives that will be offered to Robinhood Banking users, including cash delivery.

"Your cash is delivered on-demand right to your doorstep," it said. "No need to search for an ATM."

The service offers a 4% annual interest rate and deposit insurance of up to $2.5 million via the FDIC. It will offer international transfers to over 100 currencies and whole-family accounts for partners and children.

"Robinhood Banking is thoughtfully designed to be as easy to use as possible, while still delivering cutting-edge features historically reserved for the ultra-wealthy," Deepak Rao, vice president and general manager of Robinhood Money, said.

"We're pushing the boundaries of what you should expect from your bank."

The fintech firm's gold membership costs $5 monthly or $50 annually and gives users access to Robinhood's premium features. Perks include IRA matches and the option of margin trading.

Gold members who opt for the banking services, which Washington-based Coastal Community Bank will provide, would also have access to perks including the chance to get tickets to events like the Met Gala, the Oscars, F1's Monaco Grand Prix, and Coachella.

Robinhood said customers would also have access to private plane travel, personal chauffeurs, luxury helicopter rides, and luxury hotel experiences.

It did not elaborate on how these perks would work for members.

Robinhood also said it would be launching a wealth management platform. Robinhood Strategies would allow investments into a mix of exchange-traded funds (ETFs) and individual stocks.

The management fee for those who use the service is 0.25% of the assets under management a year. Robinhood Gold member will pay management fees on $100,000 of assets in their accounts.

Robinhood said it would introduce an AI investment tool called Cortex for its premium subscribers.

"Over time, Robinhood Cortex will completely transform the Robinhood experience as we strive to bridge that gap and put a premium research assistant right in your pocket," Abhishek Fatehpuria, vice president of brokerage product, said.

• It's "really hard" to be a public company right now, a senior Baillie Gifford fund manager said.
• They face reporting requirements and shareholders with different interests, Peter Singlehurst said.
• "You can build a better business by staying private for longer," he told the 20VC podcast.

Companies should stay private for longer because they can "build a better business," a senior fund manager has said.

"It's really hard to be a public company. It's really hard," said Peter Singlehurst, head of private companies at British investment management firm Baillie Gifford.

Singlehurst made the comments in an interview with 20VC podcast host Harry Stebbings.

"I think what people realize today is that you can build a better business by staying private for longer," Singlehurst said.

He described the reporting requirements as a burden for publicly listed companies.

"You can have people owning your shares for all sorts of reasons that are misaligned with what you're trying to do as a company," Singlehurst said, adding that everything the company does has to be done "in the cold light of day."

"All your competitors get to know pretty much everything about your business because you have to tell your shareholders pretty much everything about your business," he said.

Baillie Gifford's investment in private companies includes stakes in ByteDance, Epic Games, FlixBus, Stripe, and SpaceX, per its website.

On the podcast, Singlehurst recalled Tim Sweeney, CEO of Epic Games, once telling him that it was much easier to be private. But Sweeney also said going public can be the better option, depending on what your business needs to do, Singlehurst said.

He added that reasons for going public can include the need for liquidity, the desire to acquire other companies, or engaging with regulators.

But he said there had been an "evolution" of "very large, company-facilitated secondary rounds," which could become a source of liquidity for investors in private companies.

Singlehurst didn't cite specific examples, but Tesla's stock has slid in recent weeks amid declining sales and a backlash to CEO Elon Musk's political interventions. The fall has proven a boon to short sellers betting the stock will lose value.

Meta CEO Mark Zuckerberg said that the company plans to significantly up its capital expenditures this year as it aims to keep pace with rivals in the cutthroat AI space. In a Facebook post Friday, Zuckerberg said that Meta expects to spend $60 billion-$80 billion on CapEx in 2025, primarily on data centers and growing […]

© 2024 TechCrunch. All rights reserved. For personal use only.

Visa has joined African fintech Moniepoint as a new investor. The business banking and payments platform confirmed to TechCrunch that it received a “strategic investment” from the global payments giant as both companies look to drive financial inclusion and support the growth of small and medium-sized enterprises (SMEs) across Africa. Sources close to the deal […]

© 2024 TechCrunch. All rights reserved. For personal use only.

• Michael Shvo and investors bought the Raleigh Hotel in 2019 as part of a luxury condo development plan.
• Now, the sales firm Newmark is pitching the development.
• Shvo says the effort is to buy out an investor in the luxury project.

The developer Michael Shvo has built a $3 billion collection of trophy real estate in a wager that luxury assets would outperform.

His most ambitious ground-up development project to date, a condo and hotel planned for Miami Beach, is now getting underway, Shvo told Business Insider.

"In the last three months, we've put a hundred million dollars of new money into the deal," he said.

At the oceanfront site, called the Raleigh, Shvo plans a luxury hotel, an exclusive beach club, and a condo tower designed by the star architect Peter Marino.

One of the investors in the development, however, is seeking to pull out, Shvo said, declining to identify that investor.

The commercial real-estate sales and services firm Newmark has been hired to shop the investor's stake. In recent weeks, Newmark has begun to distribute marketing materials to prospective buyers that describe details of the planned development.

Two Miami-based developers who were familiar with the offering said they believed it was a signal that the entire project could come up for sale.

Shvo denied that.

"There's no sale of the Raleigh," he said. "It's a recapitalization of one of the equity partners."

Shvo declined to say how large the partner's ownership interest was or how much it was seeking to recoup in the potential sale.

He said that the project was on strong financial footing and was moving forward.

"We just literally just started major construction on the site," Shvo said.

Newmark was previously hired by Shvo in September to find a buyer for a block of 44 unsold apartments at a recently finished Mandarin Oriental branded condo building that Shvo erected on Wilshire Boulevard in Beverly Hills after a tepid response from condo buyers.

A spokeswoman for Newmark declined to comment.

An appetite for glitzy trophy properties

Shvo, a 52-year-old former luxury residential broker turned developer, made a splash in recent years in the commercial real estate business by acquiring billions of dollars of pricey property assets across the country. The purchases included the Transamerica Pyramid in San Francisco and 711 Fifth Avenue in Manhattan.

An investment group led by Shvo bought three adjacent historic Art Deco hotels, the Raleigh, the Richmond, and the South Seas, along the Miami Beach waterfront in 2019 to amass the current development site. He paid roughly $243 million for the properties.

Shvo planned to renovate and redevelop the sites and tapped Rosewood, an upscale Hong Kong-based hospitality operator, to manage the new hotel and residences.

To help publicize the project, Shvo installed an elaborate temporary garden of lush plantings and fanciful animal sculptures by the late French artists Claude and François-Xavier Lalanne. And he held upscale dinner parties catered by the renowned Italian restaurant Langosteria, which has said it will open its first American outpost at the project.

Despite early buzz and luxury pedigree, preliminary site work had never progressed into full-bore construction.

One hurdle Shvo has appeared to face are pre-sales at the sky-high values he has sought to achieve at the planned condo — a prerequisite to securing a loan large enough to fund construction.

The developer has said publicly that he has secured roughly $250 million of pre-sales at the condo building and had locked more than a dozen of the project's 42 planned apartments into contract.

But financial information being distributed by Newmark and reviewed by Business Insider state that as of December, Shvo had pre-sold 5 apartments totaling $67 million. According to Newmark, the sales were at an average price per square foot of roughly $4,400 — a lofty figure, but still short of the roughly $6,000 that Shvo had boasted the project would achieve.

A person who has access to a recent financial report prepared by the auditing firm Deloitte for Shvo and his partners in the Raleigh said that the document showed that the ownership group has had to pay enormous sums to carry the property for the past five years, including millions of dollars spent on taxes, insurance, and other costs annually.

In 2023, nearly $20 million was paid in interest on the property's current $190 million mortgage alone, which is held by the Miami based lender BH3, according to the person, whose identity is known to Business Insider. The person did not want to be named because the financial information being shared was considered confidential.

That debt on the property was due to expire on January 16, but Shvo and his partners extended it for another six-month term, according to BH3.

On Tuesday, Anthropic CEO Dario Amodei predicted that AI models may surpass human capabilities "in almost everything" within two to three years, according to a Wall Street Journal interview at the World Economic Forum in Davos, Switzerland.

Speaking at Journal House in Davos, Amodei said, "I don't know exactly when it'll come, I don't know if it'll be 2027. I think it's plausible it could be longer than that. I don't think it will be a whole bunch longer than that when AI systems are better than humans at almost everything. Better than almost all humans at almost everything. And then eventually better than all humans at everything, even robotics."

Amodei co-founded Anthropic in 2021 with his sister, Daniela Amodei, and five other former OpenAI employees. Not long after, Anthropic emerged as a strong technological competitor to OpenAI's AI products (such as GPT-4 and ChatGPT). Most recently, its Claude 3.5 Sonnet model has remained highly regarded among some AI users and highly ranked among AI benchmarks.

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• Kent He increased rent by $550 a month by adding a bedroom to his affordable housing unit.
• His 'recession-proof' investment strategy involves operating Airbnbs and affordable housing units.
• Benefits to investing in affordable housing include predictable, reliable income.

When Kent He's Section 8 tenant moved out of his single-family home in Fairfield, Alabama in 2024, the investor saw an opportunity to improve his property.

He decided to add a room and convert the three-bedroom into a four-bedroom — and spent about $41,000 doing so, he said.

The investment has already started to pay off.

He told Business Insider that the three-bedroom was bringing in $700 a month in rent. Thanks mainly to the additional bedroom, the Birmingham Housing Authority determined that the property can now be rented for $1,257. BI confirmed these details by viewing the certification He received from the housing authority.

That's about a $550 increase in monthly rent — or, an extra $6,600 a year.

Just because his cash flow increases doesn't mean his tenant's payment does, he noted: "For housing choice vouchers, a tenant is responsible for paying 30-40% of their income toward the rent. If they lose their job or rents continue to go up, their portion on a percentage basis stays the same; the government will come in and fill the rest."

The full-time investor, who lives in San Diego and owns two Airbnb units in Scottsdale, said that he often thinks through, "What are your value-add strategies? How can you provide a good experience to your tenant while also generating some additional cash flow by being creative with the square footage?"

He's learned that "the housing choice vouchers typically pay based on the bedroom count. And, two bathrooms — houses with two toilets — rent out easier than homes with one toilet. We knew we had a good property and thought, let's take advantage of the space that we have and create a better product."

Owning an affordable housing unit is part of his greater "recession-proof" investment strategy.

A 'recession-proof strategy': Short-term rentals for cash flow + affordable housing units for stability

After graduating from Bentley University in 2011, He worked as a consultant at PricewaterhouseCoopers for nearly four years. He left PwC to help a family member turn their restaurant business around and re-entered corporate America in 2017 when he got a job at a major insurance company.

Eager to exit the corporate world, he decided to try real-estate investing on the side. Specifically, he wanted to set up short-term vacation rentals, which, according to his research, seemed to be higher-risk but the most lucrative real-estate strategy.

He was right: After purchasing two properties in Scottsdale in 2021 and 2022 and turning them into bachelorette-themed Airbnbs, he started earning enough from his short-term rental units to cover his family's expenses and quit his day job.

Despite his success on Airbnb — in 2023, his two units brought in more than $240,000 — he didn't want to rely on the short-term rental strategy, which has proven to be volatile. Early in the pandemic, when travel was halted and some state and local governments banned short-term rentals to stop the spread of COVID-19, Airbnb hosts saw their calendars wiped clean.

"For peace of mind, I want to know that there's always other cash flow coming in from another asset class," said He.

That's where the second part of his strategy comes into play: buying affordable housing units.

"It's a great diversification approach," said He. "You have short-term rentals with a higher risk and more active approach to managing. And then you have the long-term rental which might be a little bit passive, lower cash flow, but much more predictable and stable income coming from the government that's paying your rent every single month."

The benefits of providing affordable housing: Diversification, predictable income

There are a handful of misconceptions about affordable housing, said He, who has built a YouTube channel dedicated to the topic: "A lot of folks, when they think about affordable housing they associate it with the projects, with guns, drugs, and drama; when, in reality, it's really hardworking folks, like my parents, who just needed a stable roof over their heads."

His parents immigrated to the US from China "with about $1,000," he said, and raised him in an affordable housing unit.

In addition to providing families in need with a nice roof over their heads, buying affordable housing has unique benefits for the investor.

As a Section 8 landlord, you can collect rent reliably, said He: "Even if the Section 8 tenant loses their job, the government will come in and pay the rest of the rent. That is what I'm calling a recession-proof investment because the government will always pay their rent on time for your voucher holders."

Plus, "there's some kind of accountability on the tenant side because the tenant doesn't want to lose their voucher," said He, who explained that in some counties the waitlist for a housing choice voucher can be 12 to 15 years. "There are going to be exceptions — there are still going to be bad apples here and there — but for the most part, folks that desperately need housing for their families value the vouchers very much so, because it's essentially hitting a jackpot."

Another aspect of the program is a housing inspection every one to two years, he said: "The local housing authority will come and inspect the home just to make sure it's in good condition."

With a traditional rental, if you have a long-term tenant, "you might wait five, 10 years and you never know what's happening inside your home. It's a great accountability mechanism to make sure you are providing a great living experience for the tenant. But as a landlord, you're also understanding what's happening inside your home, so that if anything needs to be fixed, you're taking care of it right away instead of deferring that maintenance and potentially causing more issues for you down the road."

FIRST ON FOX: The Monroe Doctrine is back in full swing – both with President-elect Donald Trump’s push for a takeover of the Panama Canal and new legislation from Rep. Mark Green to encourage investment in Latin America.

The Homeland Security chairman and Tennessee Republican put forth a pair of bills on Friday – one to use tariffs to create a low-interest loan program for companies to relocate from China to Latin America.

Another would use tariffs collected on Chinese goods to offer a tax incentive to offset moving costs for U.S. companies to bring their operations back to U.S. soil. 

The Western Hemisphere Nearshoring Act would institute a program through the International Development Finance Corporation to buy down interest rates with tariff money. 

'SAFER, STRONGER, AND FREER': SECURING THE BORDER SET TO FEATURE LARGE IN NOEM'S OPENING REMARKS TO SENATE

Under the Bring American Companies Home Act, amounts paid to move inventory, equipment or supplies used in a trade or business from China to the U.S. would be allowed as a deduction on taxes. The program would be funded through a trust fund of tariffs collected. 

"Communist China's malign influence continues to spread throughout the Western Hemisphere. It's time for us to take a stand. By rebuilding infrastructure and manufacturing jobs in this region, we can mute China's siren song," Green told Fox News Digital. 

The U.S. has long invested heavily in Latin America and the Carribean, but China is South America’s biggest trading partner and benefactor. As part of its Belt and Road initiative, it is increasingly flexing its muscle with grants and loans across the continent. China in November unveiled a megaport in Peru. 

Lawmakers have begun to float ideas to "reshore" supply chains from China and reassert hegemony in the western hemisphere with trade partnerships throughout the Americas. 

CHINA ATTACKED US WITH HACKERS. WE NEED TO HIT BACK HARD

Vice President Kamala Harris, tapped to lead the border response, focused on the "root causes" of immigration by attempting to bring investment to Latin America to improve conditions for locals so they would not make the dangerous trek to the U.S. border. 

Trump has signaled that he will re-prioritize the western hemisphere, a priority dating back to the Monroe Doctrine of 1823, through calls for the U.S. to take back the Panama Canal. 

Over the past few weeks, Trump has insisted that China is in control of the canal and that Panama is "ripping off" the U.S. 

"Look, the Panama Canal is vital to our country," Trump said. "It's being operated by China — China! — and we gave the Panama Canal to Panama, we didn't give it to China. They've abused that gift."

China is the second-largest user of the canal after the U.S. and a major investor in the country. Two of the canal’s ports of entry are owned by a subsidiary of a Hong Kong-based company, CK Hutchison. Beijing also helped finance a new bridge over the waterway.

• Business Insider spoke to sneakerheads about which pairs to invest in versus styles you can skip.
• Runners like Asics and New Balance are back and have taken advantage of collaborations.
• Nike Dunks are too mass-produced and aren't worth the purchase.

Whether you're buying your second or 20th pair of sneakers, it's important to know what you're spending your money on.

Michael Portone, the founder of Chicago-based shoe business Endless Supply, says sneakers are like stocks. Just as the stock market has peaks and valleys, the sneaker industry uses the laws of supply and demand to determine a shoe's value. That also means designs, colorways, and brands are always coming in and out of style.

Business Insider spoke with three sneaker enthusiasts — also called "sneakerheads" — about which pairs they think are worth investing in and what styles they'd skip right now.

Here's what they said.

Asics is acing the sneaker industry

Portone, who has 14 years of experience in the sneaker industry, told BI that there's been a recent resurgence in running shoes, especially from Asics. Based on past and current trends, he sees the brand as a good investment.

If you want something unique that still has staying power, collaboration lines like GD x Asics are a good place to start.

"Collaboration is really key in today's day and age," Roberto Ansani, a manager at one of Portone's Endless Supply locations who's been in the sneakerhead community for 12 years, said.

However, if you're all about the classics, he said the brand's Gel-Kayano and Gel 1130 lines are rising in popularity — particularly because they have aesthetic similarities to Balenciaga's sneaker but for a far lower price.

New Balance is back in a big way

New Balance has been around since the early 20th century and is a staple in many sneakerheads' closets.

Although it's probably best known for its "dad shoes," the brand has successfully made a name for itself in the modern sneaker game largely thanks to collaborations, like its JJJJound line.

"We're just seeing the demand go up," Ansani told BI.

He named 9060 and 2002r as some of the most high-demand models in New Balance's arsenal.

Reebok's Club C is a flexible design

Kevin Woods, who founded the curated Chicago vintage shop The Pop Up with his wife in 2019, has been invested in sneakers since his adolescence in the 1980s.

If you're looking for a more affordable (under $100) sneaker that pairs well with items across your wardrobe, he recommends Reebok's Club C design.

"That's a shoe where I don't have to baby it," Woods told BI. "I can wear it and wear it and wear it, and then once they get messed up, I can get another pair of C's."

Saucony is keeping its fans happy

Saucony's runners aesthetic attracts a wide base of shoppers.

"Certain brands have really leaned into comfort and stability — things that shoes are meant to do anyway," Woods said of the classic brand.

The sneakerhead highlighted the Starcow X Saucony ProGrid Omni 9 as particularly valuable. The mustard-color sneaker has a retro vibe with all the modern comforts of a running shoe.

If you're looking for a similar style outside of the collab, try the original ProGrid Omni 9, which has the same silhouette in different colorways.

Supreme Air Force 1s remain in high demand

It's hard to ignore Supreme when discussing trends worth investing in. The streetwear brand has become famous for its exclusive releases, minimalist aesthetic, and frequent collaborations, which attract a wide audience of customers.

Ansani said the Supreme Air Force 1 collab is consistently popular, even when the supply of it is high.

The sleek, black design makes them well-suited for a "going out" sneaker — if you're not looking to keep them in pristine condition for your at-home display.

On the other hand, America's Cup by Prada may have been a passing fad

Ansani told BI that some high-end brands are falling behind when it comes to updating their models.

"Certain designer brands are sticking to their heritage too much," he said. "It's them being stuck in their ways and unable to adapt with the market."

One of the best examples may be America's Cup by Prada. The sneaker was once well-loved, but it no longer holds that same value in today's market — especially with its original price hovering close to $1,000 a pair.

This follows the broader theme in the fashion world of high-end brands losing out to the "quiet luxury" aesthetic. Consumers just aren't looking for shoes that scream their price tags with flashy logos and easy-to-spot designs.

Nike Dunks are too mass-produced

Low-top Nike Dunks brought a new aesthetic to the sneaker world in the 1980s. The brand gave its skateboarding clientele — who had been chopping off the top of the brand's Jordan sneakers — exactly what they wanted.

Although Portone said the shoe had been trendy for a few recent years, Nike responded by mass-producing it in almost every color.

Unfortunately, that high supply with a dwindling demand quickly tanked the sneaker.

• 2024 was a good year for many of the industry's biggest quant names.
• Players like Renaissance Technologies and Marshall Wace returned more than 20%.
• Cliff Asness's AQR also had a big year, with its multistrategy Apex fund returning more than 15%.

Much like their peers in the multistrategy world, quant hedge funds had a strong 2024.

Algorithm-driven trading firms mostly delivered double-digit returns across different quant strategy types, including "quantamental" funds that blend systematic and human-run qualities into one and trend-following offerings. However, most of these funds failed to match the S&P 500's 23% gain.

In 2024, the biggest and oldest names in computer-run hedge funds led the way, such as Renaissance Technologies, the firm founded by the late billionaire Jim Simons.

The firm's two main funds available to investors — Renaissance Institutional Equities Fund and Renaissance Institutional Diversified Alpha — were up 22.7% and 15.6%, a person close to the manager told Business Insider. Of course, the manager's legendary Medallion fund, which now runs around $12 billion of internal capital, performed even better with a 30% return, Simons' biographer and Wall Street Journal reporter Gregory Zuckerman said in a Linkedin post.

In the UK, longtime strategies for $70.9 billion Marshall Wace and $13.1 billion Winton Group had good years. Marshall Wace's TOPS fund, an alpha-capture pioneer that systematically evaluates ideas and research from humans to create its portfolio, made 22.7%, according to a person close to the London-based firm. The all-quant multistrategy Winton Fund was up 10.3% last year, a person familiar with the firm told BI.

French quant firm Capital Fund Management, which is expanding its US presence, made 14.2% in its Stratus fund, which manages roughly $11.8 billion. The firm overall runs $16.7 billion across its half-dozen strategies, all of which were up double-digits in 2024, a person close to the firm said.

Cliff Asness's AQR meanwhile made 17.9% in its $2.5 billion trend-following Helix fund, a firm spokesperson told BI. The manager's $2.3 billion multistrategy fund, Apex, returned 15.1% on the year.

Graham Management was also up, returning 11.9% in its quantamental fund known as Proprietary Matrix while its trend-following option returned 6.7%, according to a person close to the Connecticut-based manager with $20 billion in assets.

But these managers have no time to rest. Artificial intelligence advancements have firms racing to build out systems and teams to better their processes. A new fund from OpenAI alum Leopold Aschenbrenner has the backing of Stripe's founders and former GitHub CEO Nat Friedman and is "focused on" a type of AI that would match human intelligence.

"The industry is experiencing an information arms race with respect to how much information can be gathered and how quickly it can be processed," a new release from Don Steinbrugge, an industry consultant who runs Agecroft Partners, reads.

"Information advantages are often short-lived, and many managers will continue investing in a host of new technologies."

More firms' performance figures will be added as they are learned.

• There are a handful of bullish forces headed for markets and the economy next year.
• Goldman Sachs said there are five factors providing a tailwind for the market next year.
• Those include stronger growth, more rate cuts, and lower inflation.

Investors feeling nervous about markets and the economy have a number of reasons to cheer up, with several bullish factors set to keep the rally going next year, according to Goldman Sachs.

Economists at the bank made several predictions for markets and the economy in 2025, some of which buck current expectations.

Some investors are starting to sour on next year's outlook, with over 34% of traders saying they were bearish on stocks over the next six months, according to the AAII's latest investor Sentiment Survey.

Meanwhile, the Conference Board's Expectations Index, a measure of how consumers feel about various parts of the economy, dropped to near-recessionary levels in December.

Yet, a handful of factors could keep the economy going strong or even stronger in 2025.

Here are five bullish calls the bank has made for the coming year.

1. The economy could grow more than expected

The US economy could expand even faster than investors are currently expecting. Goldman Sachs forecast GDP to grow 2.4% year-over-year by the fourth quarter of 2025, above the consensus estimate of 2% growth.

That increase will largely be fueled by strong consumer spending. Americans, bolstered by a strong job market and increased wealth from holding stocks, will likely ramp up their spending by 2.3% on a yearly basis in 2025, Goldman predicted, on par with consumer spending growth seen over the last two years.

2. Business investment will take off

Investment by businesses will probably far surpass expectations, Goldman said. The bank predicted that private investment in the economy would climb 5% year-over-year in the fourth quarter, above consensus estimates of around 3% growth.

"While the factory-building boom subsidized by the Inflation Reduction Act and CHIPS Act will slow, spending on equipment for those new factories and for artificial intelligence, the reinstatement of tax incentives, rising confidence, and lower short-term borrowing rates for small businesses should fuel roughly 5% growth in business investment," economists said.

3. The job market will strengthen

The employment picture could look a lot stronger in 2025. Unemployment will likely fall back to around 4% by the end of 2025, Goldman predicted, slightly lower than the 4.2% jobless rate recorded in November.

"Job openings remain high and strong final demand growth should keep labor demand growing robustly. Meanwhile, the surge in immigrant labor supply that the labor market struggled to fully absorb this year has already slowed sharply and will fade further," the note added.

4. The Fed will cut rates more than expected

Goldman Sachs is expecting the Fed to cut rates three times next year, with decreases to the fed funds rate coming in March, June, and September. That reflects a slightly more aggressive pace of easing than what investors and Fed officials themselves are expecting, with the latest projections showing the central bank eyeing two rate cuts for 2025.

"Both our baseline and probability-weighted Fed forecasts are more dovish than market pricing, which reflects both our confidence that the underlying inflation trend will continue to decline and our view that the risks for interest rates from policy changes under the second Trump administration are more two-sided than widely assumed," the bank said.

Economists have said that some of Trump's proposed policies, like his plan to levy steep tariffs, could cause inflation to spike and interest rates to rise. Trump implemented tariffs during his first term as president without a significant price increase, but his tariff plan this time around is much broader, explaining the difference in inflation forecasts.

5. Inflation will keep cooling

Price growth, though, will likely continue to decline, Goldman predicted. The bank forecast core personal expenditures inflation —the Fed's preferred measure that excludes volatile food and energy prices — to fall to 2.1% by the end of next year, down from the 2.8% growth recorded in November.

The decline will be partly driven by "catch-up inflation" ending next year, the bank said, referring to how real inflation in the economy often lags behind the official statistics. Areas that typically lag, like car insurance and rent prices, have started to cool in recent months.

Wage growth, another factor that influences inflation, is also starting to cool, which should help lower price growth. Wages grew just 3.9% over the last year, down from the recorded 4.7% in 2023, according to Goldman Sachs data.

Goldman remains solidly bullish on stocks going into the new year. Previously, the bank's strategists predicted the S&P 500 could rise to 6,500 by the end of 2025, implying 10% upside from current levels.

• Real-estate investors shared their predictions for 2025 and top advice.
• One investor says to think long-term and don't expect interest rates to drop.
• Another says to spot opportunities by looking at 'days on market' on a listing.

Experienced real-estate investors don't expect mortgage rates to drop significantly in 2025, but they tend to agree that it could be an excellent year to invest in a property.

Arguably, any year is a good time to dip your toe in if you're financially prepared.

"Some of the best advice I can give somebody is just understand that you can never perfectly time anything," said Matt Laricy, a Chicago-based investor and agent who has done over $1 billion in sales and closed thousands of deals.

His advice applies to prospective homeowners, as well: "You have to live somewhere, so is it really worth waiting one or two years to maybe get it for 10% less, but in the meantime, you spend 20% more on rent? Are you really winning?

"Just know that the best time is when you're financially ready."

Here's what Laricy and other veteran investors and agents predict will happen in the real estate game in 2025.

Dana Bull says to think long-term and not wait for rates to drop

If you're looking to buy a home or invest in real estate in 2025, don't wait for rates to drop before making a move.

"I wouldn't base my whole plan around, 'Well, I keep hearing rates are supposed to drop,'" said Massachusetts-based investor and agent Dana Bull, noting that current rates are in line with the historical average. "This is kind of where rates sit. So, if they were to drop, that would be great, but I wouldn't be banking on it."

Instead, figure out how to make the numbers work in a high-rate environment. That'll mean getting creative.

"Look at some alternative leasing approaches. Usually, they're more lucrative if they're shorter," said Bull, who has always done long-term rentals but is experimenting with mid-term in 2025 to improve her cash flow. "One idea would be to start with something like an Airbnb, with the goal of transitioning after two or three years into something more passive, like a long-term rental."

Real estate is a long-term game, she added: "You have to look beyond year one — the numbers are always going to be tight year one, no matter what the market conditions are — so, what are your projections going to be by year five?

"And then, what can you do in the interim to maybe make this property work? That would be focusing on neighborhoods and communities where you can balance both of these plays: It's going to attract a short-term rental tenant but, down the road, you can pivot into a longer-term tenant."

Matt Laricy predicts the market will 'take off like a rocket ship'

"I expect 2025 to be the best market since 2022. I think the market is going to take off like a rocket ship," said the top Chicago real-estate agent, adding that, "obviously, every market is extremely local."

In his market, rents are very high, and, "it's almost cheaper, when you factor out your down payment on a monthly basis, to buy than it is to rent," he explained. "So, you are getting a lot of people who are going to buy just as a result of that." Plus, employees should have more certainty around their company's return-to-office plan, which could promote settling down and buying: "A lot of people rented because they were uncertain of their future."

Laricy also predicts that prospective buyers will adjust their rate expectations: "I think people have now realized that 2 and 3% are never going to happen, and are like, 'At a certain point, I either have to continue to be a renter for the rest of my life, or I have to be a buyer.'"

His advice for navigating a competitive market is, first and foremost, understand the basics: where you want to buy, what type of property you want to buy, and a realistic budget.

"It sounds easy. But for buyers, it's really hard," he said.

Regarding your budget, Laricy said to assume a home will sell for higher than what it's listed at. Study your market to see how much homes typically go over the asking price and factor that in. If it's $50,000, for example, and your budget is $500,000, look at homes listed for $450,000.

If you know exactly what you want and what you can afford, you'll be able to move quickly, which is essential in a competitive market.

"Know that you have to do things on their time, not your time," said Laricy, referring to the seller. "When something comes on the market, you need to move, and you need to move fast."

Mike Zuber says it'll be a good market for investors and to focus on 'days on market'

California-based investor Mike Zuber expects 2025 to be a "unique" opportunity for investors.

"I think there are some people that will just have to sell — life events, death, divorce, all of that," he said. "And unless the house is perfect, no owner is going to buy it. The general public is basically out of the housing market. So if you have a house that's a little dated, a little old, a little bit too close to busy streets, you're going to eventually have to sell to an investor — and we're going to write offers that make sense at a high cost of capital, call it 7, 8%."

His advice is to pay attention to the number of days a property has been on the market to land the best deals.

"Go on the general MLS, Realtor.com, Zillow, Redfin, and just look for homes that have been on the market for 50 days, 60 days, 90 days, 100 days," he said. "We're seeing days on market explode, and that just tells you that that seller is eventually going to be motivated or they're going to just take it off the market. So, do they need to sell or do they want to sell?"

If they need to sell, you'll be in a better position to negotiate.

As for what number to look for exactly, start by understanding the average 'days on market' in your area. Then, look for listings where that number is double, said Zuber: "Anything that's two X the average days on market is a good sign to go fishing."

Nyasia Casey says to know the laws in your area and understand seasonality

Rules and regulations that may affect real-estate investors are constantly shifting. In New York City, where investor Nyasia Casey lives, a new law going into effect in June 2025 shifts the burden of broker fees from renters to landlords.

"Essentially, landlords have to pay broker fees now — not the tenants. So, if you're a landlord, you have to factor in that cost now," said Casey, who rents in NYC but invests in Baltimore. "A lot of landlord and tenant laws are changing in certain areas that you need to be mindful of because it will affect how much money you're putting in and how much money you have to set aside."

She also emphasized that seasonality matters, whether you're buying and holding or buying and flipping.

She said that as a general rule of thumb, "buy in the winter, sell in the spring."

Whether you're listing a rental or trying to sell a flip, you want to find a tenant or a buyer in the summer.

"Once you get past October, you're going to have a difficult time, and you may lose money, whether it be you have to lower your price for a flip, or you have to lower your rental price just to get someone in there so that you don't bleed money," she said. "So just be mindful of when you're putting that house on the market, when you're buying it, and when it's going to be finished."

Ludomir Wanot encourages investors to save up to make a move

"As of October, we're seeing about a 29% year-over-year increase in homes for sale, so what I'm seeing is the market is showing signs of balancing and the conditions are becoming more favorable for buyers compared to the last five years," said Seattle-based investor Ludomir Wanot, who built his wealth wholesaling and now runs an AI company that helps lenders communicate with their clients. "And so the best thing right now we could do is save our money for opportunities that arise."

He doesn't expect rates to drop significantly in 2025, "so learning and utilizing creative financing is going to be your go-to," he said, recommending strategies such as seller financing, subject-to agreements, and private lending could help investors lock in better terms and avoid excessive borrowing costs.

Wanot's top advice heading into the new year, however, is to actually implement what you learn about online. Taking action could be as small as joining a real-estate community and networking.

"People are buying programs, they're going to the events, they're watching people come up onstage and talk about how wealthy they got through a particular strategy. But very few people actually implement anything they're being taught," he said.

"The day we actually stop listening to and reading all these stories, podcasts, and YouTube videos and actually apply ourselves is the day we're finally going to start seeing progress in our lives."

• Brennan Schlagbaum has zero interest in managing properties but wants exposure to real estate.
• His solution is to invest in real estate syndications, which are completely hands-off.
• This is when a group of investors pool capital to purchase a single investment.

Brennan Schlagbaum recognizes the advantages of real estate — from the tax benefits to portfolio diversification — but he's not willing to buy and manage an investment property.

He says he has his hands full with simply maintaining a primary residence: "I hate real estate with a passion. If something breaks in my house, I call somebody."

To benefit from real estate without having to actually own and operate properties, he invests in real estate syndications.

"I think it's one of the best ways for somebody that hates real estate but understands the tax benefits of real estate to get in because you don't have to do anything," the self-made millionaire and founder of Budgetdog, who built his wealth primarily investing in low-cost index funds, told Business Insider.

How real-estate syndications work

In real-estate syndication deals, a group of investors pools together their capital to purchase a single property managed by the syndicator.

Once the investor contributes capital, their role in the deal becomes completely passive. The real-estate syndicator is responsible for finding the deal, executing the transaction, and, ultimately, delivering returns to the investors.

"You lose control from that aspect. You don't really have control over how that performs," said Schlagbaum, who said he invests in five multi-family syndications. But if you work with a syndicator with a good track record that you trust, "it's essentially an index fund."

He invests with a syndicator that specializes in multi-family properties.

"They go in, upgrade the units, increase rent prices in a really high-demand area that's underpriced, own and operate that building for a couple of years, and then typically sell it after a three- to five-year period, sometimes up to seven," he explained. "And you don't do anything as an investor; you're just an equity partner. So you literally send some capital their way and hope they do their job."

A good option for established investors looking for hands-off strategies

BI has spoken to a variety of established investors who, after building wealth by acquiring rental properties, are turning to syndication deals for a more passive experience.

"You hear that real-estate investing is passive, and that's certainly not been my experience," said self-made millionaire Tess Waresmith, who owns five units across three properties. "I still think it's a wonderful way to invest, but it's not passive like investing in the stock market is."

She invested in her first syndication in 2023 and likes that it opens the door to bigger investment opportunities.

"I check out the deal and make sure it's something that feels good to me, and then when I invest the money, I'm hands-off. I'm not involved in the day-to-day decision-making of the property," she said. "But as an investor, I get to benefit from investing in the larger unit properties."

Carl and Mindy Jensen, a financially independent couple who have started shifting toward passive-investing strategies, including real estate syndication, also appreciate the hands-off nature of these deals. But it's hard to know what your returns will look like, Carl told BI: "The people running these syndications will tell you they're expecting numbers, and it's infrequently accurate."

It's important to remember that the syndicator is "probably using their best, sunny-day scenarios." That said, "every syndication we've had has actually outperformed the original numbers."

To participate in this type of partnership, you typically have to be an accredited investor, meaning you either must have a net worth of over $1 million or an income of over $200,000 (individually) over the past two years. There's also typically a minimum investment requirement, depending on the syndicator.

But there are workarounds, said Schlagbaum, especially if you're part of a real-estate community or network.

Investors who are part of the community he's built, for example, don't necessarily have to be accredited to participate, since "the SEC deems pre-existing relationships allowable," he said. "They just get access to the deal because they know me."

Sometimes, "Getting around those hurdles is just knowing the right people."

• Erwin Jacob Miciano left the Navy in 2021 to focus on his real estate business full-time.
• Miciano and his wife used VA loans to buy a triplex and start their business, Semi Homes.
• Semi Homes helps homeowners avoid foreclosure and launched Miciano's real estate career.

This as-told-to essay is based on a conversation with Erwin Jacob Miciano, a 27-year-old real-estate investor and the owner of Semi Homes in South El Monte, California. It has been edited for length and clarity.

I'm a dedicated dad, a committed husband, a real-estate investor, and the co-owner of Semi Homes, a real-estate company specializing in direct-to-seller transactions and marketing strategies. I co-own the company with my wife, Theressa.

I don't have a college degree. I graduated from high school in 2015 and first worked at Wetzel's Pretzels. I decided to join the Navy to support my family abroad in the Philippines and my mom and brother in the US.

In March 2016, after three months of boot camp, I completed the basic training to become a photojournalist. Until September 2021, I served as a mass communication specialist, with most of my overseas years based in Japan, stationed on the USS Ronald Reagan.

I separated from the military in 2021 to pursue real estate full-time

My Navy job included writing press releases, aerial photography, videography, and printing. In later years, I was stationed at the Naval Hospital Balboa in San Diego, where we covered COVID-19, and I was deployed with USNS Mercy to San Pedro in Los Angeles during the pandemic.

I was presented with an "early out" program because of overmanning in my job, and it allowed me to complete my contract a couple of years early. I had already started my business, but leaving the military allowed me to pursue it full-time.

I also wanted to spend more time with my young family. My eldest was born in January 2020.

My wife and I met on the day I arrived on the USS Ronald Reagan in 2016

We became friends through the first-response/firefighting team, where she worked as an electrician. We also noticed each other at church services, and she invited me to her baptism ceremony, where she was baptized inside an open jet fuel tank.

Early in our relationship, we lived together in a small Japanese apartment. Then, we spent about a year doing long-distance, with me still deploying on the carrier and her based in San Diego.

After a year of dating, we got married, and soon after some vacation in the US, we discovered we were expecting our first child. During most of her pregnancy, Theressa lived alone until I got stationed in San Diego around her seventh month.

That same year, I became deeply interested in personal finance and real-estate investing, inspired by stories of blue-collar workers achieving financial freedom through real estate. I learned the most from the BiggerPockets podcasts.

We were motivated to become first-time homebuyers

We were eager to apply what we had learned and planned to use the VA loan entitlement from our military service. VA entitlement is how much lenders can lend to a veteran or active duty member without providing a down payment.

We aimed to buy a multifamily property — ideally a duplex, triplex, or fourplex — so we could live in one unit and rent the others to offset our mortgage. Today, this strategy is known as house hacking.

Being stationed in San Diego gave us a few key advantages

The housing allowance we received as military members was higher than in most US locations, boosting our household income to about $10,000-$12,000 monthly. This allowance was discontinued once we both left the military. Theressa left the Navy almost a year before I did at the end of 2020.

Second, the VA loan allowed us to buy a multifamily property with zero down payment.

Third, we included 75% of the gross rental income from the property in our loan application, increasing our approved loan amount. On paper, our monthly gross increased to $15,000-$17,000.

Finally, new legislation removed local VA loan limits for first-time users, giving us more purchasing power.

After months of searching, we found a triplex listed for $1.2 million

We offered $1 million and settled at $1.1 million. By March 2020, we had moved into a three-bedroom unit while renting out the other two for about $4,000 a month, reducing our housing costs to less than what one-bedroom rentals were going for at the time. This was the start of Semi Homes.

After living in the triplex for two years, we moved in with my mom and brother in September 2021 in the San Gabriel Valley. The triplex is now fully a rental property generating $1,500 to $2,000 monthly profit.

My day-to-day work involves meeting with homeowners who are looking for support in selling their properties

We now buy properties and resell them for a profit. We also help sellers in deep foreclosure and save them from it. My role is to get my team in front of our target audience and guide clients through the entire process, all the way to the closing table.

There are also late-night administrative hours and business-building, which I work on three to four nights a week. The biggest change from my Navy days is that I'm no longer away from my family for long periods — a small freedom I cherish.

I feel both fulfilled and successful

While Semi Homes started as a way to build wealth and achieve financial freedom for my family, it's grown into something more.

We stay in this tough business because we truly believe in the value we provide to the individuals we work with. I'm focused on building our online presence and spreading the word that foreclosing is not the only option.

I see myself in real estate for the rest of my life.

Want to share your story about getting on the property ladder? Email Lauryn Haas at [email protected].