I just got back from NYC…

Hey there,

Yes, we at Rust Belt Capital spent thousands of dollars to have me sit on the 64th floor of the World Trade Center this week…

Why?

We get in the rooms with the ones making things happen ( Large apartment operators, family offices, private equity funds, etc.)

This lets us compare notes with those who are supposed to be “the best”.

Now we’re sharing these notes for FREE:

• Most apartment syndications AREN’T paying distributions right now…

  People were shocked when they heard Rust Belt Capital has never missed a distribution payment… That’s very rare right now. In fact, the majority of properties are barely holding on after they suspended distributions.

• The people placing money for private equity invest their money differently than the private equity fund.

  There was more than one time I would have a conversation with a decision-maker for an investment fund and ask, what do you look for in an investment?

  Their response: personally or for the fund?

  Personally they look for the exact model Rust Belt Capital offers… long-term holds, cash-flowing assets, cashout refi-driven. When I asked why their response was “That’s how all the wealthiest old guys we talk to got rich… it de-risks investments”.

  For the fund, they’re much more IRR-driven. Compound the money as fast as possible. This however is risky a 100% gain followed by a 100% gain followed by a 100% loss is ZERO but worse is the time lost to still end up at zero (worse than zero).

• There has been a net loss of 1.1+ million full-time jobs since COVID

  Here’s one that is keeping the debt brokers up at night. Jobs numbers. At this level, they analyze government numbers (and probably their inside connections) better than just about anyone.

  Since COVID all the job gains have come from part-time jobs which have no differentiation in the government reporting. This concerns them regarding the health of the economy

• Distressed properties are taking longer to come to market than expected

  Why haven’t we seen more properties forced to hit the market? This is a question that most people have.

  There wasn’t a clear answer other than lenders are extending and pretending as much as they can right now because multifamily fundamentals are still strong. So if the only thing wrong is the interest rate burying the property the lender is going to try and keep from “realizing” a bad deal on their own book.

  Here’s the opportunity, there is now a lack of qualified borrowers AND eventually distressed deals will come to market.

• Cash-flowing deals you buy today could make a fortune in 2 years

  Almost a word-for-word reiteration of what we’ve been saying… cap rates have went up, interest rates have went up.

  If you can buy a cash-flowing property today paying 7% interest, that property will really cash flow at 5% AND be worth a ton more.

  You should be trying to buy every well-positioned cash-flowing property you can right now.

• The Fed is projecting 50+ basis point cuts by the end of the year and another 150 next year

  Additional information that supports the above.

For those who invested in our last two properties… we just received a 0.5% interest rate cut by the Fed

We said there would be upside for us if we got 1%

We’re on the right track and will adjust our interest rate when the opportunity presents itself.

Questions always welcome!

Nate & Steven
Rust Belt Capital, LLC

www.rustbeltcapital.com

_Disclosure:
Rust Belt Capital, LLC is not a Registered Investment Advisor. Investing involves risk, including loss of principal. Past performance does not guarantee or indicate future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Rust Belt Capital, LLC does not provide tax advice and does not represent in any manner that any outcomes described herein will result in any particular tax consequence. This is not an offer to buy or sell any security. Offers to sell, or solicitations of offers to buy, any security can only be made through official offering documents that contain important information about investment objectives, risks, fees, and expenses. Prospective investors should consult with a tax, investment, or legal adviser before making any investment decision. Distributions or profitable investments cannot and are not guaranteed. Not intended to be tax advice and should not be solely relied upon to make an investment decision.