Multifamily and the Banking Crisis - What to Watch Out For with Neal Bawa

Published: May 8, 2023, 7 a.m.

b'Taylor welcomes Neal Bawa back to dive into the state of the economy, inflation, interest rates, and how the banking crisis is affecting real estate now and in the future. Neal believes that the banking crisis will have extraordinary repercussions for the world and that it has acted as a catalyst for everyone to shine a floodlight on what else in the economy could go wrong. However, he notes that multifamily has the lowest exposure to mid-size banks of all real estate asset classes, making it less vulnerable to this crisis. One key takeaway from this conversation is that data insights are vital to figuring out what\'s next in hacking real estate.\\xa0\\n\\xa0\\n[00:01 - 12:06] Opening Segment\\nIntroducing Neal to the show\\nThe state of the economy, inflation, interest rates, and the banking crisis\' impact on real estate\\nGovernment organizations primarily fund multifamily loans\\nInterest rates may decline, but fewer lenders in the market could offset any benefits\\nProperty quality will determine the impact of interest rate changes and lender pullback\\n\\xa0\\n[12:06 - 22:50] Significant Discounts and Distress in US Property Markets\\nBrokers are seeing a lot of cash calls in the industry in April\\nDiscounts of 18-26% are already available in markets like Phoenix and Atlanta\\nSavvy investors see this as a great time to buy, but 90% of investors are freaked out\\nInflation is under control due to significant movement in the labor market\\nMarch saw a moderation and weakening, with major industries pulling back and layoffs happening\\n\\xa0\\n[22:51 - 26:53] Long-term Inflation and Single-Family Housing Markets\\xa0\\nLayoffs are happening in various sectors due to CEOs managing a recession\\nInflation is under control in the short term, but the long-term outlook is concerning\\nThe single-family market has performed outstandingly well despite predictions of a decline\\nDebt fixed rates have prevented distress in the single-family market, while the multifamily market struggles with floating debt\\n\\xa0\\n[26:54 - 30:17] Closing Segment\\nWhat is one thing we are not discussing that we should be?Long term inflation\\n\\nConnect with Neal through the links below\\n\\nQuote/s:\\n\\xa0\\n"Nobody anywhere on this planet, including all the federal reserves banks put together, can put the long-term inflation genie back in the bottle." - Neal Bawa\\n\\nConnect with Neal!\\nWebsite: www.MultifamilyU.com\\xa0\\n\\nInvest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/\\n\\xa0\\nTrack your rental property\'s finances with Stessa. Go to www.escapingwallstreet.com.\\nJoin our Passive Investor Club to access passive commercial real estate investment opportunities.\\n\\xa0\\nLEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or clicking here to listen to our previous episodes.'