question I get asked a lot Daniel how should I invest during the year of 2020
let's talk about that hey what's going on guys it's Daniel one half of the
Kwak Brothers and in this video I'm going to share with you how to invest
your money in the year 2020 and a lot of people ask me that question but before
we go ahead and get into it guys I ask please like and subscribe and click on
that notification bell and guys if you find this information useful share it
with your friends share it with your family don't be selfish right that's
what I learned in Sunday school at church don't be selfish share this video
share this information so that way as much people can listen to it and benefit
from it as much as possible so in 2020 well let's talk about what's going on
right now there's a lot of volatility right and if you don't know if all
Atilla tea is it's pretty much a lot of uncertainty a lot of craziness a lot of
just crap hitting the fan as I would describe it alright and there's a lot of
things that's happened in the year of 2020 that a lot of people would not have
predicted I mean even think about like the coronavirus right like the corona
virus is affecting you know the stock market it's affecting the economy
there's so many things that's going on there's so many different industries
that this virus which by the way is not even that crazy you know like I think I
saw a chart where says the corona versus like the common flu and other things
like there's more people dying to car accidents and even like animal related
deaths oh right like shark that's whatever then the corona virus it's a
lot of it is more fear but think about what it does to the economy think about
what it does to the stock market and then trade and manufacturing and
especially the travel industry it does a lot of crazy things and even just this
trade deal with the United States and China there's a lot of things up in the
air right now I mean even when you look at the stock
market and you know you really saw kind of a consistent basis all throughout
February and then like February 20th it just started plummeting right it started
and a lot of people are freaking out right people are selling it off and you
know the race draws 0.5 percent the last couple days and you know the bond market
of course whenever rates drop the prices of bonds go up so there's a lot of
volatility happening in the market right now and I think that's why a lot of
people are asking me Daniel a lot of things are going on
stuffs hitting the fan a lot of uncertainty and unpredictability should
the answer be real estate and well that makes sense I guess because I'm a real
estate expert right and sure there's a lot of benefits that real estate
investors got even in the last crash particularly guys and I'm only talking
about apartment complex investors a lot of real estate investors and
entrepreneurs who have lived through the crash will tell you well my
single-family house portfolio took a big hit right a lot of other assets took a
big hit but my apartment stayed the same and well let's dissect it let's talk
about that because think about it as an apartment complex investor we're not
buying a piece of real estate hoping the values gonna go up hoping that it's
going to appreciate and then sell it off that's not what we do that's more so the
single-family market but our apartment complex investors they'll buy an
apartment complex a piece of property and they don't buy for the value they
buy it for the cash flow so let me ask you guys a question if you buy an
apartment building let's say at a million dollars right and it's at one
unit apartment complex and it makes eighty thousand dollars a year well
let's think about that right eighty thousand dollars after expenses such as
taxes insurance maintenance management you name it now if that apartment
complex drops its value right in terms of the value of the whole asset if it
goes from 1 million to let's say $500,000 you're talking about a 50% drop
now let's say that same apartment complex however still made $80,000 a
year would you care what that value is going
to be not necessarily right probably not I know I wouldn't write if an asset
makes me $80,000 a year whether it does a million or $500,000 in terms of its
value I'm not gonna care because the reason why I bought it wasn't because of
cash flow now you might be thinking you're listening or watching through
this video and you're watching this video and you're probably thinking well
Daniel are you saying that we should invest in apartments is that what you're
telling us should we invest in multifamily no that's actually not what
I'm telling you to do granted apartments do well during
because well people are always gonna need a place to live and whereas people
who are you know doing really well living in a house right now if the
economy goes bad they may go to renting which is phenomenal for guys like me who
are apartment complex investors but that's not what I'm saying
I'm not telling you to invest in apartments why because well right now
one of the things that we can say for sure in this economy is that money is
very cheap and we've got to look at supply and demand I always tell people
all the time investing is always about supply and demand well let's think about
that for a second why should we not invest in apartment even though I just
made a couple of really good valid points as to why we should well here's
the thing if the money is cheap and that's what's certain right now right
the interest rates drop point five percent you know the the borrowing rate
is very low historically speaking and money is cheap everybody wants to invest
well if that's the case and money is very cheap what happens to the asset
what happens to the price of the apartment complex it goes up now I know
the price doesn't matter when you're holding the property but what about when
you buy it all right that makes a huge difference right when you buy it and
makes a huge difference because well if you buy something for a lot more than
what it actually should be guess what your debt service or your mortgage
payment for taking care of that loan is going to be high therefore affecting the
income so all of a sudden instead of $80,000 if you overpay for a building
you might only be making $50,000 or $40,000 and that changes a lot of things
so right now it's extremely hard to buy an apartment complex at the price that
it should be it's very hard to not overpay for an asset especially an
income-producing asset in real estate so what does that mean what are some
strategies then within real estate or potentially even just strategies in
general that we should be utilizing to make money and invest in 2020 well it's
simple whenever you have an economy where money is cheap and the transaction
value is very high the transaction volume in terms of what's going on a lot
of times quick easy ways to make money are the ones that flourish so I'll use
real estate as an example because I am at the end of the day more
realistic focus than any other asset class let's think about smart quick ways
that we can make money without taking on a whole lot of liability
one of the first strategies that comes to mind is wholesaling because well
whenever you have an economy where the money is very cheap and a lot of
transactions are happening wholesaling is a very easy viable way to make some
money on the side now do I recommend wholesaling long term no because
something didn't day if your whole state long you still got to get up and you
still got to make things happen as opposed to owning an apartment building
and allowing the cash to come to you every single month and for that guys by
the way if you don't know what wholesaling is it's literally just
seeing an asset like a property putting it under contract and then selling that
contract will interest that financial interest to another investor who's going
to make more money off that project so you're a little just a middleman making
money just distributing and finding a property another way is fixed and flip
especially if you're in a market where the single-family house market is very
hot a lot of money is cheap people are buying well fix and flip may be a great
way to get in get out and make some money quick
now however I'm saying a lot of these great things I'm seeing a lot of couple
ideas for how you can invest your money in 2020 but let me tell you the best
best investment for this year in 2020 right and I want to start off by saying
a quote by my favorite individual in the investing world mr. Warren Buffett now
obviously in my eyes Warren Buffett is like the Michael Jordan of investing you
know he's done super well for himself and I followed a lot of philosophies I
read a lot of his books and one of the things that he says very commonly is
when when everyone's going left you go right as in when everybody's doing one
thing in the market you should really consider doing things that not a lot of
people are doing and well I kind of think about that quote especially right
now because well everybody is investing in the market
everybody's letting their money go they're pulling the trigger money is
cheap people want to do transactions whereas mr. Buffett's over there in his
little corner and he's saving up as much cash as he possibly can and I think that
says something when everyone's going left you should go right so what does
that mean for me what is how does that translate into my advice for you in
terms of how you should invest your money in 2020 I think
the best investment that you can make in 2020 is in yourself that's right the six
inches between your two ears is the best real estate then you could ever invest
in right now and why do I say that well it's easy
because again a lot of people are letting their money go they're investing
right or they're doing a lot of transactional aspects they're selling
they're buying they're doing a lot of things whereas they're not spending the
time to actually learn more and invest in themselves I always tell people
listen when you're going out there into the market whether you're doing stocks
bonds real estate whatever it may be you're going out to market you're going
out into a battle field right and there's a lot of people in the battle
field there's some people who are winning or losing
right everybody almost is out for themselves it's crazy but in order for
you to invest in yourself it's like sharpening your blade right I
get a lot of questions like Dania what's the best market Daniel what's the best
thing to invest in and it seems like a lot of people just want the quick
answers in terms of what to do but nobody asked questions in terms of how
they can change who they are all right a lot of people want to do the action to
do but they don't want to focus on the who and I'm here to tell you guys the
who is ten times more important than what you do I got a lot of friends who
you know they have a horrible strategy in a horrible market but they still make
a lot of money because of how smart they are how good they are at building a team
how good they are setting a strat like it is immense and incredible with a
power of investing in yourself so how do we do that well it's simple right now
you're on the right track you're watching this video you're spending time
out of your schedule out of your busy schedule to watch something that could
potentially help you in your career now obviously that leads me to say if you
guys check the links in the description below there are a ton of free resources
that I want to give to you guys as a gift to sharpen the blade so to speak
because when you go out there into the battlefield which is the market you want
to have a very sharp tool and I'm not gonna lie to you guys that's what I've
been mainly focusing on not even in 2020 but even in 2019 right I've been
focusing on learning and expanding my brand or in terms of YouTube
with Sam and building things that help you guys out but my main focus actually
has been taking a step back observing what's happening with the market making
estimated predictions on what I believe is going to occur and sharpening my
blade for when that time comes you know one of my favorite athletes of all time
says it's a beautiful thing when preparation meets opportunity and guys
there's a lot of opportunities that are going to come but right now in the year
2020 where money is cheap and there's a lot of uncertainty a lot of people are
out there in the market a lot of people are out there in the battlefield and you
know I don't think it'd be the worst thing in the world if we just focused on
investing in ourselves it's that way what a more opportunistic time comes
we'll be the ones that are truly ready so the other guys I hope you enjoyed
this video again don't forget to Like and subscribe to our YouTube channel
again we have a lot of free resources that do help you sharpen that blade and
of course hit me up with any questions in the comment section below and let me
know what you like to talk about I think this video raises up a lot of questions
so until then I'll see you guys later