[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
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- 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
