The market is shaking loose

February 9, 2024

Investment February 9, 2024/Investment Real estate can be a little like hunting. Seasoned investors stay patient and disciplined, then strike when the moment is right.   2023 was a quiet year in which Alliance did fewer deals than we have for a long time. This year is likely to be very different.   Last year,…


The power of leverage

February 2, 2024

Investment February 2, 2024/Investment I’m always thinking about how to increase profits and returns for Alliance’s investors. How can we get more output from the same inputs? It’s a question that interests all CEOs.   Recently, I found a new framework that addresses this question. A Silicon Valley venture capitalist named Naval Ravikant describes three…


Retirement friendly investments

January 5, 2024

Investment January 5, 2024/Investment Now more than ever, investors care deeply about protecting their capital.    I love talking to these investors because they’re such a perfect match for Alliance.    If you’re close to retirement, with some extra savings, what should you do? How can you earn a decent return on your capital, without…


Continuous improvement

December 22, 2023

Investment December 22, 2023/Investment As 2023 comes to a close, it’s time to reflect. This has been a year of intentionality and building, for both Alliance and for me personally.   Alliance has successfully moved our financing model from syndicated deals to a fund. Our new fund is off to a great start. We’ve landed…


Safety and financial upside

November 27, 2023

Investment November 27, 2023/Investment Options traders and other financial professionals might say that if you want downside protection, you have to sacrifice upside rewards. That’s not always true.   This might be true in most markets, but Alliance’s multi-decade track record is proof that it is actually possible to find super safe investments that also…


Boost returns by adding value

November 2, 2023

Investment November 2, 2023/Investment   To make profitable deals, we first need to find the right properties.    Our broad industry network helps clue us into potential deals, and our deep expertise in valuation helps us figure out which ones are worth pursuing.   Valuation is tricky and it’s important to not judge a book,…


Preserving investors’ capital

October 12, 2023

Investment October 12, 2023/Investment Recently, a lot of investors have been asking me about capital preservation. In these uncertain times, people are rightfully concerned about protecting their wealth.   I love this question, because Alliance’s investing strategy is perfectly designed for capital preservation.   The great Warren Buffet once said that there are a few…


Case Study: Supply vs Demand Sensitivity

October 6, 2023

Investment October 6, 2023/Investment Anybody can buy market exposure and rise with the tide. But the best investors make a heck of a lot more money, and they do it by being consistent over time. That requires relentless focus on supply and demand.   It seems simple. When demand is growing faster than supply, prices…


The Art and Science of Valuation

September 29, 2023

Investment September 29, 2023/Investment I am frequently asked how Alliance approaches valuation. We recently published a longer explanation of real estate valuation methods.   But here’s the shorter version. We use our years of expertise to determine which of the many property valuation methods best fits in any given situation. By far the most important…


Interest rate stability will be good for dealmaking

September 21, 2023

Investment September 21, 2023/Investment For more than a year, we’ve seen interest rates rising. Now that they seem likely to stabilize, what does that mean for the market?   Higher interest rates are associated with lower asset values. We’ve seen that playing out over the last year. But this relationship isn’t always as simple as…


How might China’s wobble affect MOBs

August 31, 2023

Investment August 31, 2023/Investment The news recently has been full of stories about China’s mounting troubles. Youth unemployment is skyrocketing. At least one very large real estate company is bankrupt. Chinese debt is high and confidence is low. They seem headed for a recession, or worse.   As the second largest economy in the world…


Investing in great partners

August 24, 2023

Investment August 24, 2023/Investment In recent years, I’ve heard more people saying some version of your network is your net worth. I don’t entirely agree, but they have a point. Relationships with high-performing people are among the greatest assets any business can have.   One particular deal we did a few years back really demonstrates…


The Fed… and MOB implications

August 18, 2023

Investment August 18, 2023/Investment After more than a year of steadily increasing interest rates, the Federal Reserve (the Fed) announced another slight rate increase in July. Will we see more interest rate increases later this year?    Marcus & Millichap predicts that the Fed will probably hold off on more rate increases for the following…


Why MOB Conversions are Rare

August 3, 2023

Investment August 3, 2023/Investment A few months ago I wrote about real estate conversions. That piece prompted several questions from investors that I wanted to address:   First, some quick background: when a shortage of a certain kind of property type (e.g. MOB or housing) meets an oversupply in a different property type (e.g. office),…


Retail Healthcare Trend Benefits MOBs

July 19, 2023

Investment July 19, 2023/Investment Over the last few years, the healthcare industry has started taking cues from retail. This is a win-win for consumers (i.e. patients) and long overdue.   Historically, medical appointments have often been inconvenient, time consuming, and frustrating. These small frictions also cause people to put off care.   If retail worked…