Prediction Didn’t hold up
Stephen Keery expects the Biden administration to eliminate the step-up in basis.
“So actually passing on was actually a good way to get a new basis. That is very likely to change as well under this administration.”
Insight
Stephen Keery equates founder secondary liquidity to securing an insurance policy.
“Taking a secondary sort of like an insurance policy. Like you don't want to cash out your insurance policy. You pay it because you should have it. You don't want to use it. And for me, selling some of those shares just meant that if things went bad, at least I…”
Insight
Stephen Keery says investors block major secondary liquidity to ensure founder commitment.
“Investors are coming in and they're putting good money in. You can't be pulling out too big a chunk of your equity because They want that skin in the game.”
Insight
Stephen Keery recommends house-hacking multifamily properties with FHA loans to eliminate rent.
“Buy a duplex or a fourplex with an FHA loan, live in one of the sides, rent out the others. If you do that right, you can generally live rent free. You basically eliminate your rent. You know, your FHA loan, you need 3.5% down.”
Prediction Not checkable as stated
Stephen Keery predicts inflation will erode 30-year fixed mortgage debt.
“If you look as well, like the government's printing massive amounts of money, right? So if you can get a fixed 30 year interest loan, what will happen is I believe in 1015 years, you know, you're going to see some amount of inflation. So even if the property d…”
Disclosure
Stephen Keery uses margin loans against his equity to avoid taxable events.
“So my next thought is I'm not going to sell more shares, but I am going to get a margin loan because a loan, it's not a taxable event.”
Insight
Stephen Keery limits margin loan borrowing to 25% to prevent margin calls.
“So if they lend you 50%, Don't take 50%. Take like 25%. Have a threshold so you're not forced to sell the shares.”
Prediction Didn’t hold up
Stephen Keery predicts the Biden administration will restrict 1031 real estate exchanges.
“One thing they are talking about changing, and I think this government will change it, Is a thing called a 10 31 exchange and a 10 31 exchange basically means that you can sell a property and you can defer the capital gain”
Assertion Supported
Stephen Keery's online directory startup IPO'd at a $315 million valuation.
“So look, we grew that IPO on the Australian stock exchange in November last year, and then we had a market capitalization of three hundred and fifteen million dollars.”
Disclosure
Stephen Keery buys discounted real estate with cash and refinances long-term debt.
“And I've been turning cash into property and I buy them really well. So I get discounted properties, but then what I'm doing is I buy it cash or I get that discount. And then what I do is I refinance, I add a 30 year debt on it.”
Opinion
Stephen Keery argues cryptocurrency wealth empowers early adopters to launch new startups.
“I think crypto is enabling a bunch of, you know, new entrepreneurs because those early adopters are all techie young people, right? And they've built wealth. So they can start companies. They can do things. And I think that's really good for society.”
Assertion Contradicted
Stephen Keery notes most Australian Rich List members built wealth in property.
“In Australia, I'm from Australia originally, and we have the BIW Rich List, you know, sort of like the Forbes list, and if you look at that, most people made their money through property or held their money in property.”
Disclosure
Stephen Keery utilizes installment sales to offer sellers deferred tax benefits.
“So that's an opportunity for me. I'll try to buy more properties by installment sale.”
