Jupiters approach in high inflation periods
Updated: Aug 31, 2022
Inflation flare is burning the saving of investors, stock market hasn’t shown much respite yet, and residential home values have moved from being hottest commodity to its luke warm state.
Jupiter has been observing the market dynamics closely, talking with experts to re-evaluate its strategy, all with single point agenda of giving above market returns to our investors. For the last one month, Jupiter deliberately hasn’t signed any deals as the team was busy evaluating the right bets for our investors in the new market conditions.
Let me summarize Jupiters approach for our investors in 3 simple bullets for safe real estate investment havens:
1. Invest in assets with long term holds of 5 years or more. Short term bets - anything less than 4 years, may not reap healthy financial returns.
2. Good deals are though to find and there are landmines everywhere on sale. Great deals have become rare. Evaluate the deal structure very carefully with the help of experts. For example, as popular as it is, the IRR is a heavily flawed measure for comparing different deals against each other. What good a deal is with high returns but is fraught with million risks which may not protect your capital. Protect your capital.
3. Move away from speculative and flip deals and focus on cash flow. Cash flow is king and having strong cash flow deals with stable tenants and risk evaluated, typically out-perform other property types in the current market conditions.
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From the founders
*Real estate investments are subject to market risk. Returns are not guaranteed.