HONORS WAY WEALTH WEBINAR: Which Asset Class is HALF as Risky as the Stock Market 01-28-2026

Introduction to Prestige Commercial Real Estate

Overview of Prestige

• The Prestige is introduced as a reliable partner in commercial real estate investing, aimed at professionals looking to diversify their investments and secure financial futures.

• Emphasizes the importance of time management for busy professionals with families and careers, offering a solution that allows them to invest without needing extensive expertise in real estate.

Expertise and Client Testimonials

• The team at Prestige boasts over 400 years of combined experience, focusing on high return investments in low yield markets through meticulous market analysis.

• Client testimonials highlight satisfaction with timely distributions and the effectiveness of the investment strategy offered by Prestige.

Market Conditions and Investment Strategies

Current Market Context

• Discussion begins about asset classes that are less risky than the stock market, emphasizing the need for proper asset allocation among various investment options.

• DL Campbell introduces himself as an experienced commercial real estate investor and developer, sharing insights from his two decades in the industry.

Goals in Investing

• Campbell encourages participants to define their investment goals—whether aiming to double or replace income—and stresses the importance of setting clear objectives for retirement planning.

Educational Approach and Experience

Knowledge Sharing Sessions

• The session is framed as a "lunch and learn," designed to equip partners with knowledge necessary for making informed investment decisions. Campbell emphasizes this educational approach throughout his presentation.

Professional Background

• DL shares his background as a former engineer with significant transactional history in commercial real estate, highlighting how he transitioned into this field after realizing its potential compared to other asset classes he had previously considered.

Investment Insights and Asset Allocation

Introduction to the Team and Their Expertise

• The speaker introduces various advisors involved in investment due diligence, emphasizing their approachability and expertise.

• A property in Austin is mentioned as part of their track record, highlighting the team's experience in real estate development.

• Key team members include Kobe Anai, a developer with 30 years of experience; Warren, director of development services; and Mike Carrasco, a commercial real estate mortgage broker.

Focus on Asset Allocation

• The discussion shifts to asset allocation within investment portfolios, stressing its importance for those working with registered investment advisors.

• A case study is presented where an advisor's portfolio was heavily invested in energy, prompting discussions about diversification strategies.

Commercial Real Estate vs. Stock Market

• The speaker notes that commercial real estate is their niche compared to other asset classes like retail or industrial development.

• Advisors recommend allocating 30% of portfolios into commercial real estate due to its lower risk profile compared to the stock market.

Market Volatility and Investment Strategies

• Observations are made about investors' reactions to stock market volatility and the need for a more passive approach towards investments.

• Commercial real estate is described as being half as risky as the stock market, providing stability since it remains tangible.

Risks Associated with Different Markets

• The speaker discusses risks related to liquidity in the stock market versus potential gains from day trading but warns against excessive stress from volatility.

• Comparisons are drawn between stocks and cryptocurrencies like Bitcoin regarding historical context and regulatory challenges.

Critique of Cryptocurrency Investments

• Bitcoin's early adoption period is discussed alongside its speculative nature likened to Ponzi schemes or multi-level marketing models.

• Concerns are raised about Bitcoin's value proposition since it does not contribute directly to goods or services within a market framework.

Conclusion on Crypto Regulation and Speculation

• The speaker highlights issues surrounding cryptocurrency regulation, noting that while it can be stolen online, there’s still uncertainty regarding its long-term viability.

• Overall sentiment reflects skepticism towards crypto investments due to high volatility and lack of reliable historical data.

Investment Insights in Energy and Real Estate

Speculative Trends in Cryptocurrency

• The speaker discusses the anticipation of a surge in cryptocurrency, expected to peak around mid-November, but emphasizes the speculative nature of this prediction. They express concern for investors potentially losing money due to high-risk judgments.

Volatility in the Energy Sector

• The energy sector is highlighted as an alternative asset class for portfolios, noting that oil and gas investments are highly volatile with uncertain profit outcomes. Supply and demand imbalances often lead to low inventory levels affecting profitability.

• Fracking technology allows for re-exploration of old wells, yet there remains a significant risk associated with these ventures not yielding profitable results. Investments can range from high to medium-low rewards based on company performance and sector stability.

Evaluating Company Track Records

• Investors are encouraged to assess companies' track records when considering energy investments, including reports on underground assets that indicate potential profitability from oil and gas or solar energy projects. This evaluation is crucial for informed decision-making within portfolios.

Risks Associated with Commercial Real Estate

• The discussion shifts to commercial real estate risks, particularly focusing on syndicators who facilitate deals but may lack experience or control over properties they represent. Their primary goal is often closing deals for fees rather than ensuring sound investment practices.

• Concerns arise regarding whether syndicators own properties outright or merely hold contracts without collateral, highlighting the importance of having a knowledgeable team involved in large-scale projects due to inherent market volatility risks.

Performance During Economic Stress Tests

• The speaker reflects on their property at 22 North during pandemic-related rent moratoriums, noting that tenants continued paying rent despite national trends indicating otherwise—demonstrating resilience among professionals living in higher-class properties (Class A). This success reinforces their strategy of investing in luxury multifamily units as recession-proof assets.

• Comparisons are made between different property classes during economic downturns; Class B and C properties struggled significantly while Class A maintained stability with minimal rent specials during challenging times—a testament to strategic asset selection amidst market fluctuations.

Capital Stack Considerations

• Emphasis is placed on building a robust capital stack when investing in real estate projects; initial funding sources may include private money from friends or family which must be managed carefully against fluctuating interest rates to avoid overpaying for financing options. Flexibility in partnerships has proven beneficial for increasing property value significantly post-acquisition through strategic entitlements and improvements made after purchase decisions were finalized.

Investment Insights and Risk Mitigation

Understanding Equity and Worst-Case Scenarios

• The speaker discusses a property valued at $19 million, emphasizing the significant equity available for investment.

• A hypothetical worst-case scenario is presented: if the speaker were to pass away, investors would still receive their principal plus a share of the existing equity, which totals $199 million.

• Current equity stands at $14 million, with future growth anticipated as part of a larger $220 million asset strategy.

Asset Allocation and Performance

• The discussion shifts to asset allocation strategies during lunch, highlighting the advantages and disadvantages of alternative assets.

• The speaker mentions "22 North," a property that not only survived but thrived during the pandemic, showcasing its resilience in challenging times.

Property Details and Demographics

• A luxury multifamily property on 11 acres features 240 units aimed at young professionals who prioritize career development while managing rental payments.

• Introduction of Corinth Living Condo: a mixed-use property with 60 units (30 condos and 30 multifamily), specifically targeting residents aged 55+.

Due Diligence and Transparency

• Emphasis on working with due diligence firms like Factright and Mick Law to ensure transparency in investments; constant vetting by licensed brokers is highlighted as beneficial for investor confidence.

• Discussion about capital calls in underperforming properties (class B or C conversions), stressing that such situations have not occurred with their investments.

Project Development Updates

• Excitement about an upcoming project targeting the 55+ demographic; noted for pride of ownership among this group.

• Update on "Prestige Mayhill," featuring plans for 350 luxury units aimed at young professionals; nearing approval for grading permits.

Financial Structuring and Evaluation Metrics

• Overview of financing strategies including mezzanine financing; strong interest from investors due to de-risked project status.

• Key metrics for evaluating commercial properties are discussed; net operating income (NOI) is emphasized as crucial over cap rates when assessing potential returns.

Investment Strategy Overview

Pre-Leasing and Income Generation

• The strategy involves pre-leasing an apartment building six months in advance, ensuring income starts accumulating before the keys are received.

• This approach allows for a steady financial statement improvement as deposits from tenants begin to flow in early.

Community Amenities and Lifestyle Appeal

• The project targets a demographic of young professionals (30-somethings), offering collaborative spaces for work and social interaction.

• Additional income sources include convenience items like snacks and drinks, catering to residents' needs during late-night study sessions.

Unique Features and Investor Engagement

• An "influencer room" is designed for content creation, equipped with sound systems and screens, appealing to the target tenant demographic.

• Investors can experience the property firsthand by staying in a two-bedroom condo on-site, enhancing their connection to the investment.

Additional Revenue Streams

Diverse Profit Centers

• The facility will offer various services such as laundry, concierge services, covered parking, pet rents, and billboard rentals to generate additional income.

• These multiple revenue streams are shared with partners, contributing to overall profitability.

Market Insights and Educational Initiatives

• A webinar scheduled for March 11th aims to educate advisors on avoiding real estate pitfalls that have affected market reputation.

• Discussion includes how syndicators have impacted the market negatively; thus emphasizing risk management strategies is crucial.

Investor Resources and FAQs

Accessing Information

• Investors can access a deal room containing documentation about investments; this transparency builds trust among stakeholders.

• A YouTube channel features over 200 videos discussing real estate topics from various perspectives including engineering and development insights.

Risk Mitigation Strategies

• Conservative underwriting assumptions include setting vacancy rates at 7% despite historical averages being lower; this acts as a safeguard against potential risks.

• Understanding fees associated with syndication helps clarify capital deployment processes post-loan closure.

Retirement Planning and Investment Opportunities

Conclusion of the Session

• The speaker expresses gratitude to attendees for their participation, indicating a wrap-up of the session.

• Attendees are encouraged to reach out with further questions, emphasizing ongoing support from the team.

Importance of Retirement Planning

• As individuals approach retirement, securing financial stability becomes crucial; this includes protecting and growing one's investments.

• The concept of investing in hard assets is introduced as a reliable method for ensuring financial security during retirement.

Introduction to Prestige

• Prestige is presented as a trusted partner in commercial real estate investment, highlighting its extensive experience and reliability.

• The company aims to provide tailored investment opportunities that align with clients' retirement goals while minimizing risk.

Expertise and Client Testimonials

• A team of seasoned experts is available to guide clients through market complexities, reinforcing the importance of expert advice in investment decisions.

• Positive client testimonials are shared, showcasing consistent distributions and satisfaction with services provided by Prestige.

Call to Action

• Prospective investors are urged not to compromise on their retirement dreams and visit Prestige's website for current investment opportunities.

• Emphasis is placed on the company's hands-on management style as owner operators rather than syndicators, enhancing trustworthiness.