March 17, 2023

Shifting Markets, Shifting Tactics with James Knull

As the market continues to fluctuate and seemingly never-ending inflation and high interest rates plague us, it's becoming increasingly difficult to stay afloat. How do we ride out this situation?

James Knull is founder and CEO of Mogul Realty Group.

In this episode, James shares his tricks and tips on how to stay afloat amidst the choppy waters of the market, and what we can do to ensure our investments are secure, despite the negative cash flow we experience.

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What you will learn from this episode for just 16 minutes:

  • Learn how you can proactively react to market upheavals with the offense-defense mechanism
  • Find out strategies to keep you afloat in this crazy market even with negative cash flows
  • Discover how you can take a look at your expense management and see it through the bad times


Topics Covered:

01:30 - Cash flows, rents, and spiking interest rates

03:40 - Looking at the idea of 'offense and defense' with the properties you already have

05:56 - An interesting play at revenue applying the offense-defense mechanism on a sample property

10:29 - Handling your expense management [from the acquisition perspective]

12:00 - How do you go about with rental incentives to combat vacancies even while increasing your rents

14:39 - Will furnishing and shortening terms for single-family homes make a difference in the cash flow in some markets?

Key Takeaways:

"Ways that we can attack rental revenue, are figuring out where there are additional value-added strategies to increase rents" - James Knull

"This is where we get into Vancouver-style investing. It might be a more effective use of your capital over a five-year snapshot to just take 10 or $15,000. Put it in a special reserve fund and use that to subsidize the negative cash flow until your rent increase catches up." - James Knull

 "Don't think about it in terms of trying to cling to every property. Think about it, like a wise portfolio manager just reshoot rebalancing a stock portfolio. It's the same strategy. It's the same mindset. It's the same approach." - James Knull

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