DEVON KENNARD'S PLAYBOOK FOR REAL ESTATE SUCCESS: FROM NFL TO CRE INVESTOR
Hey Everyone!
I Hopped on Chris Berg’s podcast a few weeks ago and he used our conversation to send out this newsletter to his followers. I thought he summarized our conversation great so wanted to share it with you all!
🏈 The CRE Report: From NFL to Real Estate Investor – Devon Kennard's Playbook for Success 🏢
Why it matters: Devon Kennard, former NFL linebacker turned real estate investor, shares his transition from the gridiron to the world of real estate. His journey offers valuable insights for anyone in commercial real estate, especially those looking to diversify their income and build long-term wealth.
Kennard’s Game Plan for Real Estate Success:
🏠 Start Early, Plan Smart: Kennard made his first real estate investment just one year after being drafted in the NFL. He emphasizes the importance of planning ahead: “Save as much as you can, and invest in assets that generate cash flow.” His strategy? Real estate for consistent income, appreciation, and tax benefits.
📉 Cash Flow > Stock Market Rollercoaster: Kennard didn’t like the stock market’s ups and downs. "In real estate, if it’s cash flowing, I don’t care if values drop short-term. It’s about income generation." For CRE professionals, this echoes the focus on steady cash flow through commercial properties like multifamily, office, and industrial assets.
🏆 Learn the Language of Finance: Just like football playbooks, Kennard encourages investors to understand real estate terms like IRR, cap rate, and cash-on-cash return. "Football is more complicated than real estate – if you can learn a playbook, you can learn real estate."
📊 Diversify, But Be Prudent: Kennard acknowledges the temptation of high-risk investments like venture capital but stresses the importance of building a strong foundation first. He advises a 90/10 portfolio strategy, with the majority invested in reliable assets like real estate before considering high-risk options.
Kennard’s Locker Room Insights:
💡 Real Estate in the Locker Room: Conversations in the NFL locker room are evolving. While stock market talk used to dominate, Kennard has seen a shift toward venture capital and real estate. His advice: start with cash-flowing assets to maintain lifestyle stability before venturing into high-risk investments.
🔍 Vet Your Deals and GPs: Kennard warns against getting too comfortable with syndicators, especially in the current market. He stresses the importance of due diligence: “Not every syndicator is good. Are they being conservative? What’s their track record? The market is showing who’s really skilled.”
The Defensive Strategy for CRE Investors:
⚠️ Avoid the Panic Sell: In real estate, you can’t just push a button and sell like you can with stocks. Kennard highlights this as a benefit: “It forces you to think more strategically before liquidating.”
🚧 Risk Mitigation: Kennard compares underwriting real estate deals to preparing a football game plan: “What are the risks? How do we protect against them? It’s all about risk mitigation, just like planning for an opponent’s star player on the field.”
📉 Watch Out for Debt Structure: One key to successful real estate investing, Kennard says, is understanding the debt. "Fixed vs. variable rate debt can make or break deals." He advises stress-testing deals with worst-case scenarios like rising interest rates.
Kennard's Pro Tip:
💡 Leverage depreciation: "The tax benefits of real estate are huge," Kennard shares. Using strategies like cost segregation and depreciation can significantly reduce your tax burden, particularly if you qualify as a real estate professional.
📚 What's next for Devon?
Kennard’s new book Real Estate Side Hustle drops October 15th, sharing passive real estate strategies for busy professionals. Keep an eye out for this game-changer! Find out more at www.devonkennard.com.
The Bottom Line: Whether you’re a seasoned CRE investor or just starting, Kennard’s playbook for success offers actionable strategies that focus on long-term stability, risk mitigation, and leveraging real estate’s unique tax benefits.
🏁 Key takeaway: Real estate isn’t just about wealth creation – it’s about building a strong defensive strategy that will sustain your lifestyle and grow your portfolio.
Listen to Devon describe his playbook for Real Estate Wealth on The CRE Report podcast by clicking on the link below:
Best,
DK
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