Strategic Multifamily Real Estate Investing with Neal Bawa

Sep 28, 2022

🧱 Introduction

In this episode of the Working Capital Real Estate Podcast, host Jessica Galley welcomes back Neal Bawa, the acclaimed technologist-turned-real-estate visionary. As CEO and founder of Grocapitus, Neal leads a data-driven investment firm that has built or acquired multifamily and commercial properties across more than 10 U.S. states. With a portfolio exceeding 4,800 units and an AUM over $1 billion, Neal shares insights on his background, team structure, investment strategies, risk management, syndication, and recession signals.


📌 Key Takeaways

A Data-Driven Founding Story – Neal began as a technologist passionate about analytics and built a free tool called Location Magic around 2009–2010. It helped investors uncover undervalued markets with big upside, drawing increasing interest in Silicon Valley meetups.

Global Team, Scalable Operations – Neal’s team structure is unorthodox: for every U.S.-based team member, he hires two staffers based in the Philippines—fully integrated, managed directly, and working Pacific hours. This model has enabled efficient scaling of acquisitions, marketing, and operations.

Cautious Market Posture Amid High Rates – Given the rising interest rates and inflation, Neal advises a pause on new acquisitions for the next six months. He anticipates deal revisions and opportunities to re-enter at 5–10% lower prices as underwriting falters.

Smart Financing Tactics – Rather than locking into high fixed rates, Neal favors variable-rate debt with rate caps (e.g. 5.5–6%) to benefit if rates drop later. He also raises extra equity as a buffer—“insurance money”—on properties to protect cash flow.

Syndication Risks Ahead – Neal expects the number of syndicators—especially novices transitioning from other careers—to shrink over the next 18 months, as many grapple with increased borrowing costs and project instability.

Eyes on Early Recession Signals – He predicts the Fed may begin rate cuts around May of the following year, which would signal a market rebound and possibly usher in a new investment cycle.

Stay Informed via MultifamilyU Resources – Neal urges investors to keep up with macroeconomic trends using MultifamilyU webinars—particularly the “Impact of Inflation and Interest Rates on Real Estate”—for timely market intelligence.