Happy Friday! It’s not goodbye. It’s see you later. I start the second half of my paternity leave next week. I’ll be out for the summer, but you’re in good hands with my UK colleague Hallam Bullock. Just try not to give him too much grief on July 4.
In today’s big story, some advice for people looking to get their real-estate empire off the ground.
What’s on deck
Markets: Why understanding Goldman Sachs’ “coffee culture” is so important for interns.
Tech: How Gen Z is getting around the brutal market for entry-level jobs in the tech industry.
Business: It turns out that Target’s loss is Walmart’s gain when it comes to wealthier customers.
But first, location, location, location.
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The big story
Realizing the real-estate dream
On the path to financial freedom, real-estate investing is typically a key stop.
The stock market or e-commerce side hustles can be popular options, but collecting investment properties is often viewed as the Holy Grail of setting yourself up financially.
But real-estate investing doesn’t come easy … or cheap. There’s also plenty of risk when taking on so much debt.
Lucky for you, BI’s Kathleen Elkins has written extensively about people who have set up real-estate empires.
That includes a couple who built a portfolio of over 100 units and now work part time and travel half the year.
It might sound a world away from someone just starting out, but it didn’t happen overnight. When they started scooping up investment properties, Letizia Alto and Kenji Asakura didn’t even own a primary residence.
They shared six main pieces of advice they always follow when trying to make money in real estate.
Here are some more takeaways from Kathleen’s conversations with real-estate investors:
It’s not just for people with deep pockets: High upfront costs (down payment, closing costs, potential renovations) can be a big deterrent for hopeful real-estate investors. But a little can sometimes go a long way. A former firefighter went from earning $1,600 a month to owning over 30 properties. He spoke to Kathleen about how he got creative to land a $3 million deal with just $30,000 in savings.
Do your homework: Real estate’s biggest challenge can be figuring out where you want to buy something. A 32-year-old who retired early thanks to his real-estate investments shared the two software tools he swears by to find markets to buy in and price rentals appropriately. Another investor said this business book helped shape his investing strategy.
The beauty of being stuck in the middle: When you think of real estate, you might immediately gravitate to vacation-style properties or long-term rentals. However, some investors see the most value in mid-term rentals.
Don’t forget about taxes: Generating income from multiple properties complicates how you file your taxes. But as the aforementioned Asakura put it to Kathleen, “The tax code is essentially a series of incentives to encourage certain behavior that the government wants.” Here’s how they get the most out of their investments from a tax perspective.
3 things in markets
1. An intern’s guide to succeeding on Wall Street. If you’re one of the lucky interns in Goldman Sachs’ summer class, take full advantage of the company’s coffee culture to build connections. And if you’re over at Blackstone, CEO Steve Schwarzman thinks you should embrace the change.
2. Citi gets an AI level-up. The bank’s trio of AI strategy leaders gave an inkling of what’s to come in a memo seen by BI. It’s scaling AI capabilities across the company, with more than 150,000 employees now equipped with its tools. Read more about the strategy.
3. Don’t overpay for your Aperol spritzes this summer. The value of the US dollar has dropped amid trade war and deficit concerns. That means unfavorable exchange rates and transaction fees can jack up costs when traveling abroad. Here are some ways to avoid excess charges overseas.
3 things in tech
1. Is AI rejecting your job application? As companies turn to AI to boost productivity, BI has spoken to many frustrated job seekers who wonder if humans are even reviewing their applications. BI reached out to seven companies, from Kraft Heinz to Google, to find out what role AI plays in their hiring process. Spoiler: their answers varied.
2. Harvey and LexisNexis hard-launched. AI legal-tech darling Harvey is partnering with LexisNexis to let users access the vast legal database within Harvey’s app. The move strengthens Harvey’s claim as the go-to legal software provider as its rivals make gains.
3. How young techies cope with the industry’s hiring downturn. Gen Z is staying optimistic about tech jobs, though many have had to lower their expectations and take what they can get. Layoffs, getting ghosted by potential employers, and dealing with the threat of AI are just part of the process.
3 things in business
1. Wait, is Walmart cool now? Clothing sales are up 23% at the retail giant this year, and shoppers are sharing “haul” videos online, impressed by its surprisingly trendy finds. BI’s Katie Notopoulos found Walmart is attracting wealthier customers overall and picking up some Target defectors.
2. Efficiency secrets of the Wall Street elite. Leaders in the hot, high-growth secondaries industry are busier than ever. Fourteen industry power players told BI their top efficiency tips, from fake calendar blocks to just saying “no.”
3. Peyton Manning goes from signal caller to shot-caller. Manning’s Omaha Productions is looking to move its content off the field. He recently spoke with BI about his production company’s success and said there’s no one-size-fits-all definition of an Omaha show. Not every pro athlete reaches Manning’s roaring financial success, though.
In other news
What’s happening today
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Kroger reports earnings.
Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Akin Oyedele, deputy editor, in New York. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Ella Hopkins, associate editor, in London.
Read the full article here
