Preserving Wealth Through Changing Economic Cycles with Kenneth Gee

Nov 22, 2023

What does it take to build true wealth in real estate investing during inflationary times?

 

Angel Williams and Kenneth Gee have an insightful conversation about navigating real estate investing to build true wealth, even during periods of high inflation. They discuss the importance of putting investors first, being transparent, having experience, and building a track record.

 

Kenneth is the founder and managing partner of KRI Partners and the KRI group of companies. He has more than 24 years of significant real estate, banking, private equity transactions, and principal investing experience. Throughout his career, he has been involved in transactions valued at more than $2.0 billion, much of which has included the acquisition, management, and financing of various multi-family real estate projects. 

 

 

(00:03:22 - 00:05:58) Active vs Passive Investing

• Do an honest assessment of your skills, time, and risk tolerance when deciding between active or passive investing
• Passive investing can provide excellent returns if you vet the sponsor thoroughly
• Be very cautious about quitting your job to pursue active real estate investing full-time

 

(00:05:58 - 00:08:18) Writing a Book Out of Necessity

• Create content when you see people struggling or failing unnecessarily
• Educate potential passive investors on how to properly vet sponsors
• Bring trust and structure to an industry still in its infancy

 

(00:08:18 - 00:10:41) Putting Investors First

• True investor-first sponsors don't take fees if the property isn't cash-flowing
• Raise all capital before taking acquisition fees, not just enough to close
• Opportunity cost matters - evaluate real returns after inflation

 

(00:20:32 - 00:22:04) The Challenges of Properly Pricing Expertise

• There is an art to properly pricing consultancy and education services
• Remain humble and don't compromise your reputation or integrity
• Trusted experience builds exponential growth over time

 

(00:14:39 - 00:19:00) Wealth Creation vs Wealth Preservation

• This inflationary period requires a shift in mindset from wealth creation to wealth preservation
• Not all investments cash flow - some maintain wealth during downturns
• With higher acquisition fees and lower returns, fewer deals make sense now

Quotes:

"If the property isn’t healthy and the property isn’t running positive, if we’re not doing distributions, we don’t deserve an asset management fee." - Angel Williams

"Let them do what they do. You do what you think and believe is right." - Kenneth Gee

 

Connect with Kenneth:

Website: https://www.kripartners.com/

 

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