The Fed Pulse

Alright, let’s talk rates. Last week, I was betting the Fed would wait, but hey—I'll take the surprise!

They just dropped rates by 25 basis points on Thursday.

That's two cuts this fall (50 basis points in September), and it might just be the start of a longer easing trend.

Here’s what this means:

• Inflation's Slowing, But Stubborn: PCE inflation's holding at 2.1%—pretty close to the Fed’s target.

• But housing costs (+4.1%) and service inflation (+5%) are sticking around, making it tough to expect a swift return to pre-pandemic rates.

• Labor Market's Cooling, Not Freezing: Job openings dropped 16% in Q3, but unemployment’s steady at 4.1%.

• We’re not looking at a crash, just a softening—enough to keep the Fed cautious on future cuts.

• Long-Term Rates Still High: Investors are demanding more on the 10-year Treasury, pushing it up to 4.3%.

• Long-term borrowing will stay pricey, so don’t expect mortgage rates to follow the Fed’s lead down.

Bottom line: Enjoy the cut, but stay focused —it’s still a bumpy road out there.

Deep Dive

Skill acquisition is a superpower

Hey, it’s Saul.

For many real estate folks, Sam Zell is the North Star.

It makes sense. The guy is probably the GOAT.

In the 1970s, they called him the “Grave Dancer” because, during that recession, he went all in on distressed real estate deals.

In the 80s, he switched it up, diving into private equity to scoop up distressed companies.

By the 90s, he went global and practically invented the REIT industry, earning himself a new title: “The Grandfather of REITs.”

So, what was his secret sauce?

How did he consistently find opportunities and scale them into empires?

Here’s what I think: Sam had an extraordinary ability to acquire new skills just when he needed them, adapting faster than anyone else in the game.

And that, in my experience, is the true “superpower”—skill acquisition.

Let’s break it down.

Every major skill, like acquisitions, is a bundle of smaller skills.

For acquisitions, think sales, marketing, valuations—and then drill further down.

Sales have layers.

They include phone negotiations, in-person pitching, and empathy selling.

Also, selling with a "NO" and structuring seller financing, and so on.

Mastering acquisitions means you are stacking layers.

You are building a toolkit that gives you superpowers.

I’m sure you’ve noticed the pattern.

Some folks have years of experience, yet acquisitions still trip them up.

Others?

They seem to nail it within six months.

What’s the difference?

They’re skilled at learning what they need, exactly when they need it, and they do it in the most efficient way possible.

I've found that this skill acquisition process works for me, and here's exactly how I use it to learn a new skill:

1. Research (1–2 days)

First, I gather information on the skill I want to learn.

For example, when I wanted to improve my newsletter writing game, I went to YouTube.

I picked up a few books, subscribed to relevant newsletters, and followed experts on social media.

I also found podcasts on the topic.

All this info goes into my Notion folder, which I call “Void.”

This stage can take a day or two, but the key is not to get bogged down in “analysis paralysis.”

2. Find a mentor (1–2 days)

After gathering broad knowledge, I zero in on an expert who can teach me the finer points.

I usually start within my network, then look to LinkedIn or X.

In today’s world, we’re fortunate; you can connect with almost any expert in almost any field.

I might reach out for a quick call or explore a paid consulting gig if that’s on the table.

The goal is to get direct input from someone who’s mastered what I’m trying to learn.

3. Learn and Do (2 days to 1 week)

Now, it’s time to dive deep.

After I choose the best learning resources, I dive in deeply.

It's like binge-watching Netflix, but instead, I go through a book and a course over the weekend.

Also, I start practicing right away before I get good at it.

For instance, when I was learning to write newsletters, I drafted my first piece before finishing all the books and courses.

The goal isn't perfection from the start.

It's to use the skill right away and improve it over time.

4. Reps (4 months)

Once I have the basics down, I go all in on getting reps and reinforcing what I’ve learned.

If I focus on a skill for four months, I can become competent—clearly above average, if not fully mastered.

It's simple: the more reps I do in a shorter period, the better I get.

5. CANI (Constant and Never-Ending Improvement)

I picked up this concept from Tony Robbins: CANI—“Constant and Never-Ending Improvement.”

It's simple, but powerful.

Even after I’m competent in a skill, I look to keep improving daily.

And if I can improve that skill by 1% daily, I’ll be three times better in one year.

And most don't think that way.

Now you know.

The Wrap-Up

You don’t need four years to learn a skill.

In many cases, a single weekend of intense focus is enough to get you up and walking, and within four months, you’re more than “decent.”

In a year, you can learn four new skills.

And if it's in one core area, you have a superpower.

It’s simpler than it seems, and I hope this process inspires you.

Let me know how it goes—I read every email.

If you found this helpful, please share it with your friends.

Be Well,

Saul

News & Moves

L.A. County just closed a $200M deal on a distressed skyscraper.

• L.A. County approved a $200M buyout for the Gas Co. Tower in Downtown, aiming to save on leasing costs and modernize its workspace.

• The 54-story tower, previously valued at $632M in 2020, is now going for a fraction of that, showing how office values have tanked in L.A.

Biggest industrial real estate chess move in SoCal.

Blackstone’s Link Logistics just flipped four monster warehouses for $202M.

Here’s the kicker—the seller built three of these and sold them to Blackstone’s Link.

Now, they’re buying them back for $301/sq ft. Wild, right?

• The Deal: $202.1M for nearly 670,000 sq. ft. of fully leased warehouse space.

• Market: Is this just a flex, or is logistics heating up?