MBC Real Estate Investing is built on 4 core values: abundance, freedom, community, and reliability [1]. I want to go a little deeper into what these values mean to us, so that you have a better idea of whether or not our views align with yours. I believe that understand someone’s values is important to building a successful business relationship and want to provide you as much insight into ours as possible. This fourth article in the series is about reliability.
As often as we hear about “overnight successes” and crave instant gratification, lasting success requires consistent effort over a long period of time. That is why reliability is so important.
Reliable people, and companies, take the long term view. They aren’t focused on quick wins that look good, but don’t set up long-term success. They are willing to put in the work, day after day, year after year, in good times and in bad, to ensure they have laid the foundations for their successes to last. They are the epitome of the “10 years in the making” that goes behind the “overnight success”.
That willingness to both take the long-term perspective and keep showing up and doing the work is core to MBC. While we appreciate the incremental milestones along the way, the long-term goal that we have to provide consistent, long-term cash flow to our investors doesn’t happen overnight. It takes a lot of time vetting markets, deals, and partners to find the right opportunity. Then it takes consistent management of the property to ensure the long-term cash flows materialize.
The drive for reliability is why we focus on deals that are 15+ years, instead of the shorter term 3-5 year deals that are common in syndications. While short term deals can provide quick return of capital, they don’t allow for the long-term, consistent returns that we are looking for since you need to be constantly re-investing in new deals, which inherently have higher risk and lower returns during stabilization.
By taking the long-term view, we don’t need to take as much risk in the short term. We find properties that are cash flow positive from the start, work to improve their cash flow, and put in the time to nurture them over the long term. It isn’t as thrilling a ride as when you bet on turning a D-class property into a B-class, with the potential huge returns or loss of everything, but those thrills are not what MBC is about.
This long-term view is also why we are so selective in our property evaluations. We are looking for a property that will be a reliable source of cash flow over 15+ years. That means that we can’t count on short-term trends and aren’t looking for places where we can quickly flip for a profit. Instead, the fundamentals need to be sound enough to sustain the investment through good times and bad.
Slow and steady, tax advantaged, returns over the long term is our focus and why we value reliability.
If you have any questions or comment about this post, please email them to me at blog@mbc-rei.com, I will reply to the questions that are straightforward and will turn the questions requiring more detailed answers into future blog posts.
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This article is my opinion only, it is not legal, tax, or financial advice. Always do your own research and due diligence. Always consult your lawyer for legal advice, CPA for tax advice, and financial advisor for financial advice.