Cherif Medawar

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What Are Real Estate Funds And How They Work?

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real estate funds

Investing in real estate is a lucrative strategy that attracts many entrepreneurs, which is why there are so many different types of real estate business models. People chose to find the deals and do the work themselves OR they choose to passively invest in REITS, hedge funds and real estate funds and syndications.  Today we will focus on real estate funds and syndications. These are investment vehicles that enable sponsors to raise capital for deals and give investors the alternative to stocks, options, crypto and other investments to earn passive income based on the assets held in the portfolio.  Sponsors structure a fund or syndication to legally raise capital for a broad range of real estate assets in an attempt to generate high returns, protect against potential losses, pay their investors and scale the portfolio.  DEFINITIONS A real estate syndication is when a group of investors pools together their capital to jointly purchase a large real estate property. Apartments, mobile home parks, land, self-storage units and other real estate assets are some of the investment opportunities available through real estate syndications. A syndication is usually focused on one deal at a time.  An investment or real estate fund is an entity formed to pool investor money and collectively purchase securities such as commercial and residential real estate. Thus, a real estate investment fund is a combined source of capital used to make real estate investments. A real estate fund may have a variety of projects under management at the same time. HOW DO REAL ESTATE FUNDS WORK? Real estate funds are a relatively new addition to the real estate market. Generally speaking, RE funds are pools of money — sometimes tens of millions or billions of dollars — managed by investment professionals. Unlike mutual funds, which must be registered with the Securities and Exchange Commission (SEC), RE funds are exempt from most standard securities regulations. However, they are filed with the SEC and are managed with Rules and Regulations that the SEC sets. There’s no single definition of what qualifies as a RE fund, but they typically share these four characteristics: They’re not registered with the SEC. They are filed.  They must follow Blue Sky Rules.  They may only accept accredited investors. Although there are exceptions with the Regd 506b; whereas if you have a preexisting relationship with the potential investor(s) you can accept up to 35 unaccredited. However, they must be sophisticated and the process to invest must be met.  They use some combination of advanced investment strategies to maximize returns, such as short selling, leverage and derivatives. These real estate investment vehicles may invest in commercial properties, such as office buildings or apartment complexes, or residential properties. The  fund may also invest in shares of publicly traded companies that specialize in real estate, such as homebuilders or mortgage lenders. Some real estate funds invest directly in property, whereas others use derivatives or other strategies to express their view on the real estate market. Some may combine these approaches within a single fund. Like any other fund, a real estate fund may charge management fees and performance fees depending on the type of structure used. Management fees are usually assessed on assets under management and are typically 1% to 2% annually. Performance fees are often charged at 20% of the profits generated by the fund above a certain hurdle rate such as 8%. WHAT IS THE DIFFERENCE BETWEEN REAL ESTATE FUNDS AND MUTUAL FUNDS? Real estate funds and mutual funds are two similar forms of investing that come with distinct differences. There are a few key differences between funds and mutual funds. Real estate funds have less regulation than mutual funds. They do not have to register with the SEC, and there are no requirements for how often they have to report what they own or how they’re doing so long as the total capital invested in the fund is under 20 million dollars. Obviously normal management, compliance and accounting processes must be in place. The only requirement is that fund managers must register with the SEC if they manage more than $100 million in assets and they must register with the Commodity Futures Trading Commission if they trade certain types of derivatives. Those who invest in funds must be accredited investors and have a net worth of at least $1 million. Funds typically have higher fees than mutual funds. Real estate funds are more liquid than mutual funds, allowing investors to enter or exit an investment faster. The sponsor or syndicator sets that timeline in their offering documents.  Mutual fund managers have more constraints on how much risk they can take on, which limits their ability to generate big returns when markets are rising but also limits losses in bear markets. Mutual funds are required to report holdings every quarter, so investors know what the manager owns at any given time. Individuals can invest in mutual funds by buying shares directly from the mutual fund company or through brokers. There’s no minimum net worth requirement. HOW DO I INVEST IN A REAL ESTATE FUND? The rules for investing in real estate funds are rather different than those of other investments. To invest in most real estate funds, you must be an accredited investor. This means that you must meet one of the following criteria: You have an annual income of at least $200,000 (or $300,000 together with a spouse) for the past two years and expect to make the same or more in the current year. You have a net worth of more than $1 million, either alone or together with a spouse (excluding the value of your primary residence). Additionally, real estate fund investors typically must contribute at least one share  to the fund itself. There are some funds that allow smaller contributions, but it’s unusual for these to be less than $25,000 to 100,000. For a Regd 506b you must have a preexisting relationship with the sponsor prior to investing. With a Regd 506c there … Read more

Raising Capital For Real Estate In 6 Steps

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Raising Capital for Real Estate

For investors in the real estate industry, raising investment capital is one of the first challenges that you will face. You need to be able to raise sufficient funds to cover the down payment on your real estate property, closing costs and brokerage fees and construction.  Because you may be relying on other individuals and investors for a significant portion of the cash needed for your projects it is important to create an investor profile that will help you to attract investors. And it is critical that you are raising capital through legitimate vehicles, whether that be JVs, partnerships or syndications and/ real estate funds.  You should not take money from investors without the proper legal structure so you protect the investment, yourself and most importantly your investors.  Improving the performance of your real estate business has a lot to do with how much you spend on it and what your budget or strategy is to take it to its highest and best use. For example, how much money you can afford to buy property will determine how quickly you can reach your volume goals. And if you want to start spending money on advertising, you first need to make sure it pays off by having the funds. There are many different ways to raise capital for real estate investing. We focus on JVs. partnerships and syndication. Once you know the vehicle you will use to raise capital you need to focus on your plan. There are certain things you should do first to ensure your success. The following steps will help you not only attract investors. Step 1 – Always be Improving Your Credit The first step is to improve your credit score. It’s not that potential investors will run a credit report on you– but it does give you power with your structure to work with financial institutions to get more money to use towards the projects, like construction loans. Your investment vehicle will stand as one score, as will yours. The better your credit the bigger the opportunity to get inexpensive money and leverage the deal.  This can be done by paying off any outstanding bills and not applying for any new loans until you are at a 720+. It may seem counter-intuitive, but raising your credit score is necessary in order to find banks and lenders for a loan at a great rate. Having a good credit score shows lenders that you can be financially responsible and that you have a good chance of repaying their loan. And having lenders who will loan you for the construction allows you to use the money you raise with you JV, partnership or syndication for scaling the portfolio.  Step 2 – Save up Money Once your credit score has improved, it is time to save up some money. You should have enough saved up to pay back the loan, with some extra cash left over as profit. You will need this money to put down on the property as well as pay closing costs and other fees associated with the purchase of a property. Step 3 – Find Investors Once you have saved up enough money and your credit score is high enough, it’s time to find some investors. You can put ads out on the Internet or approach people face-to-face. What Is Investment Capital? Investment capital is money your business uses to grow. You can use it to buy supplies, inventory, rent space and employees, launch new products, or expand your business. You may need up to several million dollars for an initial outlay and ongoing financing for your operation. Your goal as a business owner should be to get the most capital for your business at the lowest cost possible. An investor gives money to an entrepreneur in exchange for a financial stake in the business. The most common type of investment is equity financing, where the business issues stock that investors purchase as part of a company offering. Revenue-based financing is another form of investment, whereby a company receives monthly payments based on its monthly revenue. Another popular form of financing is debt financing, which allows entrepreneurs to borrow money from investors for a set period of time at an agreed upon interest rate. Contingent promissory notes are another option, where investors can receive returns on their investment if the business achieves profitability or meets other goals established by investors. Sources Of Private Money In order to raise money, you will have to borrow from other sources.  First, you will look for private money sources. Private money is the funding that comes from either an individual or group of private individuals.  The best place to find private money is through your network of friends, family, and business contacts that know you well and trust your abilities.  You should be prepared to show that you have thought out how you plan on using their investment and how they will get their money back plus some profit with enough left over to buy the next property if they choose to do so. What Are Money Partners? Money partners, also known as capital partners or investment partners, are people and organizations that provide the primary capital for a real estate investment deal. Money partners function as the financial backer of the deal and are responsible for financing, funding and paying back any debt that’s created by it. Real estate investing often relies on money partners to supply a portion of the investor capital for a property to be acquired, developed or redeveloped through a loan or by equity investment. How To Raise Private Capital For Real Estate Raising capital for real estate can be a challenging feat. Few people think about the fact that real estate investments are always capital-intensive. While there are several ways to finance your property, you may opt to raise money on your own. Here are some tips to help you raise private capital for real estate: 1) Make sure you have a great … Read more

How to Setup Your Own Real Estate Fund: Key Strategies and Structures

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In its simplest form, a real estate fund is a structure established to raise equity for real estate projects. It can be set up as a debt or equity investment vehicle with multiple investors who jointly contribute capital to the fund in exchange for limited liability company (LLC) interests or as a limited partnership (LP) with a single general partner and several usually passive limited partners. In some cases, the fund may be established as an additional layer of ownership, but not a separate legal entity, where investors contribute capital directly to the underlying properties. Real estate funds have been growing rapidly in recent years as investors are looking for uncorrelated asset classes offering handsome returns. The increase in availability started with the JOBS Act for small business, but the structure also allowed real estate investors to use the strategy to get into bigger deals and provide a safe vehicle to protect their investors. Essentially, a real estate fund is a partnership, established by experienced investors, to raise money (also known as “equity”) for real estate projects. Similar to other pooled investments such as mutual funds and exchange-traded funds, private real estate funds provide investors with the opportunity to spread their risk by investing in a variety of different real estate assets rather than single properties. However, unlike investing in publicly traded securities, private equity funds are not required to disclose their holdings or financial performance so long as they raise under a specific amount of capital. These types of funds are focused on marketing to accredited investors. How does one go about creating a structure, blessed by the Securities and Exchange Commission (SEC) to raise equity for ongoing real estate investment? Funds are a reality in the world of real estate investing for those who find the right people to work with and to legally structure and file or register the structure. In its simplest form, a fund is a legal entity formed by people coming together with the desire to earn money through real estate investments. The purpose of this post is to go over some of the key strategies and structures you can use when forming a partnership to fundraise or raise equity for ongoing deals. Entity Types Private equity or debt real estate funds are investment vehicles that are created and organized to invest in a single specific sector or industry. The two most common private equity real estate funds and the structures that they utilize include a limited liability company (LLC) or a limited partnership (LP). Only IRS regulations can accurately dictate which structure is required by your specific situation, but in both cases, it is best to work with a CPA who can guide you through the entities that are best for you. A proper fund is also filed or registered with the SEC, and the sponsor or fund manager is responsible to follow strict guidelines enforced by the SEC. These rules and regulations protect the investor, the fund manager and the investment itself. A private equity/debt real estate fund can be structured as a portfolio of income-producing real estate that is owned by a fund OR it can be structured for one project at a time. The purpose of these funds is to yield returns for investors, typically through the purchase of distressed properties, affordable housing or other income-producing properties, like stand alone commercial buildings, land or even industrial. When establishing a private equity/debt real estate fund, there are several strategies and structures to consider before making a final decision. Admission and Withdrawal of Investors One of the basic considerations with private real estate funds is whether the fund should be an open- or closed-end fund structure. Both of these structures have their advantages, and the right choice will depend on multiple factors (such as liquidity needed, investor base, etc.). The open-end structure of a real estate fund allows investors to enter and exit the fund at regular intervals which also allows the sponsor to raise capital from a broad base of investors. It doesn’t allow investors to reimburse the fund or invest additional funds if they want to increase their exposure. it also exposes investors to greater tax risk. The closed-end structure, on the other hand, allows investors to increase their exposure by reinvesting distributions as well as receive returns of capital, which reduces an investor’s overall equity in the fund, which is a tax advantage. The third option is to create “side pockets” for the fund. This structure can also help manage some of the conflicts investors may have with one another by allowing them to participate in investments according to their preferences for risk or return. What is the difference between General Partners and Limited Partners? A general partner (GP), often called “Sponsor” limited partners (LPs) referred to as “Investors”. General Partners are responsible for managing and controlling the risks, taking care of day-to-day matters and approving decisions while Limited Partners make all investment decisions but usually have no responsibility for the management of the partnership. What roles do sponsors and investors play in the real estate private fund? The first step in forming a real estate private equity/debt fund is identifying the key roles to be played by all the participants involved. These include the sponsors or fund managers and their investors. You can structure your real estate fund as complicated or as simple as you like. Sponsors: The sponsor is a person/company that provides the legal structure of the fund, hiring an investment manager to run it, raising capital from investors, and providing ongoing support and project management. Investors: Investors provide capital to the fund, expecting that they will get their money back (plus interest) when they sell their shares. The sponsor is a firm/or individual which set up the fund. It is also known as an investment adviser, or a fund manager. The sponsor looks for potential deals and performs due diligence on them to determine if they are worth investing in. The sponsor has the … Read more

What is the criteria of an “Ideal Business”?

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parking lot investments

Most of my readers know that I prefer real estate investing over owning any business. But I am involved in many businesses such as my real estate syndication, the education company, the tax reduction company, the real estate management company and soon we will be launching a full fledged crowd funding website and portal. In all of my business listed above there is a direct connection to REAL ESTATE. As I analyzed each business I took time to compile a list of criteria for an “Ideal Business”. Please read it and add to it as you see fit in the comments below. Here is my list so far:   Unlimited Global Market Product needed by people (a basic human need) Low to no market price resistance Profitable through residual income Unique values not available anywhere else Minimum labor Low overhead Low inventory requirements Low capital cost requirements Low to no credit required No equipment Income in cash (no account receivables) Fewer to no government regulations or intervention No complicated permits or licenses to own or operate Portable – movable or can be handled from anywhere Interesting, fun, intellectually stimulating Truly helps others Compounds over time Frees your time – controlling schedule Several avenues of profit Low taxes (incentives and rebates) Easy to pass on (to loved ones) No direct exchange of unit of time for unit of income Can be systematized for predictable work and returns Can be automated through people and processes Can be leveraged (bank desirable) Can be scaled and expanded through duplication (going public) No special degree or complicated/on going education Can work through different economic cycles (up and down markets) Gives you a great reputation and support from others Again, feel free to add to it in case you feel I missed something. And BTW if you know what kind of business that could be— please share it with everyone you know. The closest I came up with was real estate. Sincerely, Cherif Medawar CEO Founder of the ideal business CrowdFundExpress.com Launching in the 2nd quarter of 2017 Once we get final approval from FINRA and SEC

Crucial Factors and Calculations to Consider for Best Results in Real Estate Investing

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retail courses

If you are investing in real estate you must understand the relationship between price and value. I want to share with you what calculations I do to figure out that difference and how I apply the strategy: My buy and sell strategies My buy and hold structures The business models I offer my investors Under the “price” consideration I calculate: How much money will I have to pay to purchase the property How much money and effort will it cost me to rehab the property, including other fees to reposition it and get it to perform to its highest & best use How much time will it take to get it to a level where it can be resold or rented Then, I compare each of the options to alternative assets and opportunities Under the “value” consideration I calculate: After spending all of the above to get the property to its highest & best use, how much income will that property bring in each year and over how many years? What would be the incremental effort, and ongoing cash expenses required to keep the property performing (Monthly operating expenses and periodic capital reinvestments)? At what price would I be able to re-sell it once I finish the repositioning vs. what value would the property have if I held on to it for income over a period of 5 years, 10 years or longer? Then, I try to compare the long-term value of that property vs. the price (based on time, money and effort) that I would pay, and I compare that to other income producing assets. If I am buying to resell (flip) the property, then here are the factors I would consider that combine the price and value calculations: How much time, effort and money will it take to: Find a property below market price and purchase it Improve the property to increase its value Resell the property (closing costs etc.) The next step is to figure out: What is my expected average profit on each deal (percentage wise: i.e. 20% annualized)? How long would it take me to find the next deal (down time with no returns between deals, cost of the money)? How much would my yearly returns be after all the time, effort and money spent on all the deals I could do in one year? How would that compare to other business models that would require a better balance between my resources (time, money and effort) at that particular time in the market and in my life? After doing all these calculations, and after many years of experience in the real estate business and profit sharing through my various real estate funds and educational companies, I have created the safest and most profitable business model for students/investors. If you wish to flip properties with no investment of your time or effort— and down time on your money, then my business model is a perfect fit. Your money will produce returns from day one when you acquire the properties. It is a “done for you” model to buy and hold, as well as flip with cash flow of 9% per year, and an approximate upside of an additional 30% +/-. Right here right now I have a business model that produces for my students/investors a hands-off, hassle free, secured return of approximately 40% per year. That is true “TURNKEY”. Watch my next blog for details to go to www.SFIFundDirect.com Sincerely, Cherif Medawar CEO SFIFund Direct www.SFIFundDirect.com      

How to Make 40%+ Per Year in Real Estate Safely and with Little Effort?

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real estate

Right here, right now I have a business model that produces hands-off, hassle free, secured return of approximately 40% per year for my students/investors. Let me tell you more: If you are a novice or an experienced investor, you are better off buying a few properties in cash that are already rehabbed and rented bringing in 9% net profit per year. That is a 9% cap rate per year on the cash you invested. (This will save you the time, money and effort to hunt down deals, rehab them and rent them or re-sell them. Immediately you will start making money 9% per year on your cash invested. There’s nothing of greater vale for an investor than to start earning cash flow immediately after you close on the purchase of the rented properties that have a reliable management company in place. Earn from Day 1.) Next, immediately thereafter, place these rented properties online For Sale at 8% cap rate, which makes the selling price higher and ensures a nice back to back upside profit for you. (The reason another investor would pay more and receive a lower net return, a cap rate of 8% per year on each property, is because you will allow them to buy one property at a time, through financing, whereby they get referred to a local bank that offers 80% financing at an interest rate of less than 5% fixed for 30 years.  This makes them able to hold on to the property for long term, and all they have to invest is 20% of the purchase price as down payment. Their cash on cash return becomes approximately 14% power year for the next 30 years). This is Virtual Flipping. When you buy the property, you get the cash flow of 9% per year— and whenever it sells you get an upside profit of an additional amount within a few weeks to a few months. The upside annualized gain is approximately 40%+ which makes your yearly return over 30% per year. This gives you the power to buy other income producing properties immediately back to back to reinvest your money. (You don’t even need to market to find sellers, or negotiate with anyone. You don’t even have to deal with contractors to rehab the property, and deal with delays and frustrations. You simply buy income producing properties 5 at a time in cash producing 9% cash per year. Let my company, the real estate hedge fund that I manage, keeps them posted online and we resell them for you at a profit so you can come in and buy again.) Let me show you the numbers: You invest in cash say $100,000 on a property netting $9,000 online through my real estate hedge fund’s website (That is 9% cap – $9,000 divided by .09 = $100,000) These are sold in packages of 5 properties. My real estate fund keeps it posted for sale on the website and we promote the properties for sale individually to investors who pay slightly more because they wish to finance the properties one at a time. A few weeks or months later, we contact you with a buyer who would be paying $112,500 for that same property producing the same income of $9,000 a year – The returns are 8% annualized which is $9,000 divided by .08 – $112,500. (Remember that this new investor buying the property will finance it and we refer them to the local banks in Ohio that like our business model and offer a 5% or less interest rate fixed for 30 years. This makes the return for the new long term hold investor over 14% cash on cash after they place only 20% down) You get $12,500 gross profit, minus the closing costs in and out and minus a 1% posting fee and 1% commission fee. Your net profit would be between $8,500 to $9,000 within less than 4 months – you can easily make over 40% per year on your investment doing these transactions online hassle free and secured since all purchases and sales are handled by the title companies. To recap, all you need to do is go to, www.SFIFundDirect.com,  and click to buy no more than 5 properties in cash. The title company will contact you and finalize all through phone and email. We keep your property posted online and you keep getting the monthly rent deposits made by the management company until we contact you to sign a resale order. You resale for more money and sign on the dotted line again through the title company to cash out all your money and upside profits. Virtual Flipping. In our experience, it has never taken them more than 4 months to resell any property through financing. Everyone wins in this business model: You, the short-term investor, who seek cash flow right away from the rental income at 9% while holding the property and an upside profit when you flip it of another 30%+ for a total of 40%+ (All with lower risk, less time, no effort and no hassles). You, as a long-term investor, who seeks cash flow forever and invests only 20% cash down payment, then finances the property at a low fixed rate for 30 years to get a cash on cash return of 14% plus per year. My Real Estate Hedge Fund that seeks to buy, rehab, and rent properties to deploy the massive amount of capital that we need to invest and put to work— safely, ethically and profitably into a cash machine. This machine gives us cash flow when we hold the properties and some profits when we resell them in packages to short term and/or long term investors. All the numbers are posted on the real estate hedge fund website – All properties are at or around $100k each. They are all located in Ohio, which is a solid and steady rental market. This makes the strategy of a long-term hold a defensive and profitable … Read more

What Would a Balanced Real Estate Portfolio Look like?

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hotel real estate investment

As a real estate hedge fund manager for a decade now, I use an approach I developed years ago involving 5 parts to a balanced real estate portfolio: safety, solvency, liquidity, reserves and leadership. Safety Different asset types such as some multiple units and some single units Different locations such as different cities or states with high demand and steady growth in population as well as scarcity of potential new competition of new buildings Different strategies such as buying to rehab and resell for immediate profits and some to buy and hold for long term Diversified asset type of income such as from multiple units small tenants like apartment buildings or high income from less units such as single tenant retail buildings with corporate guarantees Solvency: Low to no debt obligation (low LTV) If debt, then well-structured in both the low amount owed and the terms over time (non-recourse) High reliable Income against all expenses (high DSCR) Great insurance covering business interruption and asset protection structure Liquidity: Locations that make it easy to resell if needed (based on demand) Credit lines against properties to access cash through borrowing at low rates in case of a cash crunch Reserves: Having cash reserves equal to one-year payments on the side in case market drops in various locations simultaneously and resale gets delayed Having a reserve of back up investors interested to be involved in transactions at reasonable terms in case of a cash crunch Leadership: Having the right team members in place (intelligent, ethical, energetic and committed) Providing the right incentives and rewards as well as feedback and penalties Supervising the progress of each project and property and getting the proper accurate reporting as frequently as needed Maintaining financial controls at all times In my real estate funds Welcome to MIGSIF and Secured Fixed Income Fund we buy, fix and sell higher end residential properties in California, mainly the Bay area, where demand is higher. We also buy and hold in Old San Juan, Puerto Rico where cash flow is more reliable due to cruise ship business and the historic zone. Wishing you all the best in your investments.   Cherif Medawar (407) 608-5448

The Perfect City for a Real Estate Investor

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Perfect City for a Real Estate Investor

Have you ever been to a place where you thought to yourself, “Wow this is a cool place! I like it here.” If so, have you asked yourself, why you had this impression? What was it that you liked so much about that particular city or town? Well, as a real estate investor and hedge fund manager, I have always paid attention to what I like and what other people find alluring in a specific city. In the past, I had the privilege to live in a variety of places around the world like Egypt, the Middle East, France, and Switzerland, throughout Europe, various cities in the U.S.(mainly California), Cancun, Mexico and also Old San Juan Puerto Rico, in the Caribbean. I have had many residences for over a decade now and have enjoyed the beauty and uniqueness of all these different places. But I have come to realize that there is a set of criteria, when met, any city becomes attractive to its locals and most of its visitors. Here is a short list I developed after 3 decades of travels, while always keeping an eye on the beauty of architecture and attitude of locals that impact the overall lifestyle in a particular location. To feel like a great place a city or a town must have: Order: Balance, symmetry, and a variety of forms and colors. Its layout must be organized in a way that flows well with nature even in its complexity. Visible life: The streets should be alive with activities, full of life, energy, and excitement. It must give you a sense that a lot is going on and you don’t want to miss out on something. You want people walking, talking, sitting in restaurants and cafes enjoying life; not just cars or people hustling and bustling for work. It has to be as much on display as possible. Compact: While you want space, you also want a decent density. Having the balancing, moderating influence of living close to other people in an uplifting surroundings. Tightly packed well-ordered cities, with lots of squares, plazas, and places where we can hang out. The art of the square is a having good size, symmetry, and height of buildings. Having great statues and maybe a water fountain in the center. You want to have a place that is private within the public space, surrounded by cool places to hang out. Orientation and Mystery: You want to get a bit lost in the back streets that are cozy and quaint. A place that is both cool and warm. Anonymous and mysterious yet personable and familiar. Where you get the sense of the old respected history and the new modern energy. You want to sense the newness of the place as well as some intimate old familiar surroundings. Scale: You don’t want it packed with commercial interest posted on high rises. You want a variety of places of worship, museums, culinary places, and shops. No more than 5 stories high buildings are always more welcoming. Sizes and spaces with a density that does not make you feel too small or too big. Local influence: You want to immediately feel that there is a uniqueness to the character and feel of the place. You want to see people and architecture that reflect the local customs, way of life, and history. Climate: An inviting climate that makes you feel you are at the right place, no matter the time. Safety: You want to feel that you can go venture on your own and discover without having to worry about your own security or well being. Friendly and happy: You want to feel that everyone around you is happy to see you there. Making you feel welcome, appreciated, and wanted. I like places where people take time to share their stories and carve time out of their schedules to involve you in what is happening in their surroundings. It is great to feel open and connected. Especially when look you in the eye, smile and greet you and each other which gives you a sense of warmth and welcome. Educational: You want to learn something new to be able to share with your friends back at home. Museums, local customs, etc. In the early 2000’s I found such a city— and it is called Old San Juan, Puerto Rico. It is the oldest historic zone under a U.S. flag. This area features all of the criteria I wrote above and more. It has hotels, museums, churches, restaurants, art galleries, and great shopping. This enchanting city is all nestled into some unique and colorful colonial buildings with narrow streets covered by blue stone-casts that were brought over as ballast on Spanish ships in the 1500 and 1600s. This area is very charming and I have worked hard and invested millions into the area to restore the beauty and integrity of its colonial buildings. My goal has been to make everyone enjoy the history and charm of this Old City. That city offers everyone, locals, tourists, first-time visitors (coming off the cruise ships) to returning guests an opportunity to connect with each other and with the historic architecture and the story that is very much part of nature in its design and creation. Come and visit Old San Juan, PR and you may just fall in love with itas I did back a decade and a half ago. Cherif Medawar Old San Juan, PR

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