Bob FraserCFO & Macro Strategist | Data-Driven Investing Expert | Speaker & Author

If you wanna make money, it matters how much you pay. | Bob Fraser of Aspen Funds

Name: If you wanna make money, it matters how much you pay. | Bob Fraser of Aspen Funds
Uploaded: 2022-12-21T15:04:22+00:00
Duration: 51 s
Channel: Bob Fraser
Description: In this segment, Bob Fraser of Aspen Funds discusses how macro‑economic concerns, such as a potential recession, affect consumer‑facing real‑estate…

21 Dec 2022 · 1 min

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In this segment, Bob Fraser of Aspen Funds discusses how macro‑economic concerns, such as a potential recession, affect consumer‑facing real‑estate assets. He emphasizes that the decisive factor for investment success is the purchase price: acquiring assets at low prices yields higher cash‑on‑cash returns. Fraser uses a hypothetical 8% cap rate to illustrate that a low‑priced asset can generate strong yields, and warns that the only way an investor loses money is if cap rates rise, which he deems unlikely. The core message is that price, not macro trends, is the primary driver of profitability in these investments.

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whether this, you know, how bad is recession going to affect these. And I think it's, I mean, intuitively, you know, you just know people are going to keep buying their six-pack, they're going to keep getting their haircut. But really the killer, the killer thing that you got to think about here is the, is price. Price is king when it comes to making money. If you want to make money, it matters how much you pay, right, for getting in. And when you have a cap rate at, let's just say, 8%, that means cash on cash it's yielding That is a very low-priced asset relative to the income it's producing. And, you know, it's just hard to imagine— the only way you lose money if cap rates go up from there, and it's, that's inconceivable, you know. I mean, you know, so it just seems like price is the killer here. It's just so attractive because they're just so darn cheap.