Are you a new real estate investor struggling to navigate the current market conditions? Feeling frustrated by rising interest rates, low inventory, and uncertainty about the future? In this episode, multi-family entrepreneur Neal Bawa shares insights on navigating the challenging real estate market, emphasizing the importance of being data-driven and understanding long-term trends in rents and inflation. He also offers practical advice on leveraging data and building a successful investment strategy in today’s environment. Tune in as Neil provides a blueprint for building a successful real estate investing business.
[01:40] Neal shares his journey into real estate investing, starting with a successful tech career and a desire to find a solution to the significant tax burden he was facing as a high-income earner in California. He explains how he dove into the world of multi-family properties and became a savvy syndicator, building a portfolio worth over $700 million.
[04:25] Neal emphasizes the importance of understanding tax percentages and keeping more of your income, rather than focusing on your gross income. He explains that the only number that matters is the amount you keep after taxes, and that investors should always be thinking about how to maximize that percentage.
[06:16] Neal provides practical advice for new investors on navigating the current real estate market. He discusses the challenges facing new investors, such as rising interest rates and low inventory, and highlights the opportunities presented by the current market conditions.
[14:42] Neal shares his unique strategy of focusing on properties with assumable loans, which allows investors to benefit from low interest rates and price discounts without having to pay the full cost of the current market conditions.
[19:24] Neal addresses the common misconception that the multi-family market is in “distress,” highlighting the resilience and stability of this asset class. He explains that while there may be some distress among individual investors and syndicators, the overall market remains strong, with high demand and low inventory.
[21:52] Neil shares his data-driven approach to staying informed about the real estate market, including his use of chat GPT to gather and analyze information from various sources.
[30:45] Neal provides insights into his team structure and data-driven approach to project management, which includes leveraging a team of 44 people, 50% of whom are based in the Philippines.
Here are actionable takeaways from this episode:
· Understand your tax percentages and focus on maximizing the amount you keep, not just your gross income.
· Leverage data and information sources, like chat GPT, to stay informed about market trends and make data-driven investment decisions.
· Consider properties with assumable loans to benefit from low interest rates and price discounts in the current market.
Quotes:
• “Every investor must, at all times in their mind know what percentage of the money that they’re making they’re keeping.”
• “Be greedy when others are fearful. Be fearful when others are greedy.”
• “The Bible got it wrong by one letter, because it is not the meek that shall inherit the earth. It is the geek.”
• “Data beats gut feel by a million miles, and you can only manage what you can measure.”
