The Importance of Understanding Market Cycles

Sep 28, 2023

Neal Bawa
This podcast guesting of Neal Bawa is hosted by Tim Little of Journey to Multifamily Millions.

This week’s guest on the Journey to Multifamily Millions Podcast is none other than the mad scientist of multifamily himself, Neal Bawa! 🎙️

Neal is the Founder and CEO of UGro and Grocapitus, commercial real estate investment companies using cutting-edge analytics to source and acquire (or build) large commercial properties across the U.S. 

He has a portfolio of over 4,800 units, with Assets Under Management valued at over $1 Billion!💰

This interview was so packed with knowledge bombs we had to break it into two parts! 🤯

In part 1 of this interview, he shares his real estate success story and reveals unconventional strategies and tax-saving gems in real estate. 📝

He also dives into data-driven decision-making and how he stays ahead with insights on shifting macro trends. Stay tuned! 

Episode Topics

[01:35]  Meet our guest, Neal Bawa
[02:14 ] Neal Bawa’s Remarkable Real Estate Journey
[04:37]  Unlocking Real Estate Tax Benefits
[07:49]  Maximizing Real Estate Tax Benefits
[10:30]   Navigating Real Estate Contrarianism
[15:28]  Real Estate Speculation vs. Investment
[20:33]   Navigating Real Estate Trends: Disinflation, Interest Rates, and Market Cycles

Notable Quotes

  • “I got into real estate in reverse. Most people do a fix and flip or they do a standard single-family rental. I ended up building a 27,000-square-foot building from scratch, and it worked really well.” – Neal Bawa
  • “I went from paying 50% of my salary in taxes to paying very little. That turned me into someone who truly understands the incredible benefits of real estate.” – Neal Bawa
  • “At the end of the year, you’ll notice that what you’re actually going to see is none of that cash flow is being credited towards your taxes because we call it return of capital.” – Neal Bawa
  • “So it’s just strange that when people take advantage of those incentives that were put there for a reason. It’s, people act like it’s a gray area when it very much is not from a legal perspective, right?” – Tim Little
  • “I think a vast majority of the people that ignored 2008 are also ignoring the opportunity today in multifamily for the same exact reason.” – Neal Bawa
  • “Every investor I see out there today is a reverse big speculator. They are a scared speculator.” – Neal Bawa
  • “Today, anyone looking at inflation doesn’t understand how market cycles work today. You need to look at disinflation or deflation.” – Neal Bawa