074: Surviving the Real Estate Market Crash with Neal Bawa

Neal Bawa is a data guru and technologist who is known as the "mad scientist" of multifamily. In this episode, Neil discusses why interest rates have only recently been raised and how they might affect the real estate market. He also provides insights on how Crystal Lagoons could change real estate forever and shares tips for anyone looking to work with Grow Capitalist in the future. Neil also discusses how the market will shake out over the next few years, and reminds listeners that it's important to be patient when it comes to real estate prices.

[00:00 - 05:03] Opening Segment

• Introducing Neal to the show
• Brief background and career
• Data beats gut feel by a million times
• Lenders become more conservative during flux times

[05:04 - 11:27] Preparing for Another Rate Hike

• Neal talks about how the Fed is raising interest rates to kill inflation
• • History shows that this has always led to a recession
• Only a single instance of the Fed having a soft landing due to low inflation has been recorded in the past
• When the economy is on its knees it usually goes into a six-month recession

[11:27 - 22:48] Producing Yields in the Future

• Grocapitus is forecasting lower returns for its value add investments, but still has strong demand from its 800 investors
• The company is looking for other methods to make money, such as super value add and buying properties in tertiary markets
• Multifamily is not in a bubble, but there is a time limit on how many properties can be value-added
• The biggest wealth builder in real estate is water, and the single greatest opportunity in real estate is a crystal lagoon.

[22:48 - 24:19] Closing Segment

• See the links below to connect with Neal Bawa
• Final words

Quotes:

“You can’t find an economist right now worth their salt that will declare a recession.” - Neal Bawa

“Inflation is simply an expectation. An expectation of rising prices.” - Neal Bawa

"I would much rather have the lenders of the bottom than the lenders of today." - Neal Bawa

Connect with Neal through LinkedIn, Instagram, Twitter, or visit www.Grocapitus.com. 

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Real Estate Runway Podcast is all about alternative business and investment strategies to help you amplify life, and maximize wealth! Click here to find out more about the host, Chad Sutton.