Things are certainly changing on many fronts. Markets, policy, and consumer behavior is always evolving. Some of those changes may be even more significant in 2022.
These are some of the ways that NNG Capital is leaning on, and leveraging decades of experience, through multiple cycle turns to help investors stay ahead.
Acknowledging The Potential Threats & Risks
This is not about fear. It is about being pragmatic, and seeing where the opportunities are (and aren’t).
Ignoring these factors like an ostrich with the head in the sand isn’t going to help or save your finances.
It is also irresponsible, if not unscrupulous to proclaim everything is fantastic and there is no risk just to sell what you are selling, when you know differently.
NNG is constantly evaluating the market, key indicators, and legislation, policies, and proposed bills to see what may be next. Then taking action accordingly.
Monitoring The REAL Data
Investors simply cannot rely on the general media, nor lagging official data sets for their information, and to make intelligent investment decisions.
It is simple to purchase media, even in the biggest publications to sell your story and spin on the data, with your own calculations.
All too often official data is compiled, and only published three or more months after the fact. That is far too late. If that data comes out in June and announces a recession started in January, you are far too behind the curve.
Mastery of this requires access to the best raw data, as close to real time as possible, and with the human intelligence to decipher it. While understanding how statistics are being calculated.
Creating Intelligent Liquidity
It can be true that when markets shift into distress then cash can be king. It is certainly very advantageous to have.
At the same time, too much idle cash is a risk of its own. In a high inflation environment, it is losing value every day.
The intelligent way to balance this is to invest for better liquidity, earning significant returns, while you position to use those profits to acquire new assets at even better discounts.
NNG Capital does this in several ways. Including flipping properties and debt (mortgage notes) within a fund, and rapidly recapitalizing, with a profit.
Our most recent funds have also offered a 90 day call option for investors. Providing the ability to get your capital out fast if you really end up in a dire financial position and must have the cash.
Preparing For Higher Interest Rates
Higher interest rates are coming. They will probably go higher, and faster than many can fathom is possible.
Most haven’t lived or at least invested through periods when interest rates have been 14% or 20%. Yet, it happens.
There are several ways to navigate this. These include locking in a low rate, and securing fixed interest rates for the long term in advance. One can also underwrite and price deals to buy at discounts with the impact of higher rates in the future calculated in.
Restructuring Portfolios With The Right Types Of Assets
A properly diversified portfolio can help you remain consistent through various phases of economic cycles. Yet, it also just makes sense to position to minimize risk, and maximize the upside as rotations occur as well.
This includes optimizing for demand and competition. Perhaps giving preference to some higher end assets when the masses saturate the bottom and middle of the market. It’s also important to optimize for resilience in asset value, consistency in performance, and growth. This can be achieved with more affordable rentals in secondary markets when a bubble may be forming in other markets.
How are you investing to stay ahead of the curve?
Find out more about investing in secured debt and real estate, go to NNG Capital Fund.