In this episode of the Investor Financing Podcast, Beau and Neal talk about what the current data shows about real estate opportunities (and economic threats) as well as a few key indicators that will help you make more informed financial decisions in 2022 and beyond.
Will the housing market crash in 2022?
With crypto crashing, interest rates doubling, and a “shortage” of real estate inventory, many people are fearing the state of the economy and US real estate market are going down the tubes.
So, what do we do? We look at the data… and what better person to give us the hard data than real estate investment legend and CEO of Grocapitus, Neal Bawa?
Neal sheds light on how unemployment rates and the nature of work are influencing real estate investment opportunities, the markets that are going to see the largest drops in transaction volume, and why it’s vitally important to compare our current market to 2008.
You’ll also learn why remote work is driving Neal to start investing in self-storage, the market he’s avoiding investing in, and his predictions for PropTech, cryptocurrency, and more.
“I am very, very aggressive, because I use data science, in investing in tertiary markets because I believe that today, tertiary markets are the only remaining deal in multifamily.” – Neal Bawa
Episode Timeline/Questions Answered:
[00:00] Introducing Neal Bawa & The topic of today’s episode
[02:57] The most concerning data in real estate: The approach that lenders are taking to debt.
[06:38] What to do if you have bridge debt on your assets.
[10:43] Why invest in tertiary real estate markets?
[16:28] Do we REALLY have a shortage of inventory in 2022?
[26:25] When is the single-family lag going to hit?
[29:53] How unemployment might affect the success of short-term rental properties.
[32:29] Emerging markets and asset classes that Neal Bawa is/isn’t investing in.
[36:13] Western US & West Coast states and cities with the most/least opportunities in real estate.
[38:49] Neal’s predicted changes in PropTech in the next 5-10 years.
[45:04] Data-based predictions on cryptocurrency and Bitcoin.
[47:29] Recap & Key Takeaways