frankxia

Today, my guest is Frank Xia. Frank is an ex engineering director in tech startup where he specialized in pricing and decision making. He is passionate about AI and investing in real estate and alternative assets. And in just a minute, we're going to speak with Frank Xia about deal underwriting and raising capital for B and C Class multifamily deals in Dallas, Texas. 

J Darrin Gross

 I'd like to ask you, Frank Xia, what is the BIGGEST RISK?

Frank Xia  

I think the biggest risk for me is, I think, interest rate right now, and how I choose to, I don't think I can transfer that. But I think I can minimize it number before for a few for a few strategy. Number one is I just invest less deals, because the less you invest, the less risk you expose, right. But if you don't invest anything, then you have no income. That's not an option. So you have to participate in debate, but you can participate very strategically. So that's number one. Number two is you can use a fixed rate mortgage to alleviate your risk, right. Instead of few years back, everybody is using floating interest rate with two years of recap. So we learned the lesson, we're going to be more conservative using a fixed rate mortgage. So that's number two. Number three is that we are looking for a cheaper price. We're giving us more buffer so that we can tolerate this kind of waste. So these are the three things we're going to be doing. But the biggest risk to us right now our interest rate.