Show notes:
3:30 – Neal’s take on the market and investor sentiment
5:00 – The stock market is tied to investor psychology
5:45 – The FED is slowing down and may have hit a plateau
6:00 – 2023 investor market is tied back to 2022
7:00 – Investors think they’re investors, but they’re really speculators
8:15 – Multifamily properties have dropped 22-26% in value
9:30 – Every investor in multifamily over the last 24 months thought they were gold
11:15 – Investors are making the mistake to not invest when things are down
13:00 – Investors are getting smarter about their underwriting
14:00 – In the money rate caps
16:00 – Many banks don’t want you to foreclose
17:00 – Where will interest rates go over the next few years
18:00 – 2026 will look like 2019
18:30 – The FED only started hiking in 2015
22:00 – Not likely to see cap rates drop significantly
23:15 – I’m more worried about disinflation, not inflation
24:30 – More deals are not closing than are closing
26:00 – The bid-to-ask ratio is always too high!
31:00 – There has to be capitulation between buyer and sellers
32:00 – 2023 has seen negative rent growth
32:30 – Rent growth has to be inflation-adjusted
33:30 – It’s normal for rent growth to be 1.5% above inflation
35:00 – Rent growth was so high last year because they had more money
36:00 – Newly constructed apartments are keeping rents low for others
41:00 – Interest rates have nothing to do with rate caps
42:15 – Rate caps will be cheaper next year in Q2 or Q3
44:00 – Cap rates won’t compress for a while
46:30 – Very few options if your rate cap expires in 2023
49:00 – Will the office space crash affect multifamily?
50:00 – Condo prices get affected first when office spaces get hurt
52:15 – The benefits of build-to-rent investing
53:30 – Why can’t people afford homes anymore
56:30 – BTR allows people to live in the next best thing to a home
58:15 – Property taxes are the 800lb gorilla for apartment NOI
1:00:30 – Location Magic
1:01:00 – Insurance is growing 15-30% each year
1:02:15 – Insurance companies prefer new builds
1:03:00 – Listen to Warren Buffett!
