In March 2023, the biggest US bank failure since the 2008 global financial crisis happened as Silicon Valley Bank, a major lender to the tech industry collapsed from a bank run. The panic pushed two more US banks to fall over the edge while in the global banking stage, Credit Suisse, one of the world’s biggest financial institutions, had to be rescued by the Swiss central bank from collapse. It has been an unsettling period for investors. But, should we be worried? What’s the impact of this banking crisis on the real estate industry? What about the soaring interest rates and their consequences?
As real estate investors, it is critical to be aware of the potential effects of this crisis and other factors at play in the financial system. Joining us today, to help us understand these issues, is seasoned real estate investor, technologist, data guru, and CEO of Grocapitus Investment, Neal Bawa. Neal provides an incisive assessment of the banking collapse, the US financial system, and the effects on the real estate markets. He shares his forecasts on the credit market, the interest rate trajectory, and the US economy in general. Are we now heading for a massive recession? Click now and find out. Neal tells us how to survive the market disruption and how to seize investment opportunities.
Key Points from This Episode:
Tweetables:
“The mindset that you need to have? Engagement, engagement, and more engagement.” - Neal Bawa
“As a limited partner investor, your job is to be an investor that thinks like Warren Buffett. Warren Buffett gets hit every time the market goes down. But guess what he does, he buys a lot more.” - Neal Bawa
“Right now multifamily is a falling knife. Single-family is a knife that's falling but in slow motion. So, it's actually much safer.” - Neal Bawa
“The market is about to lose a lot of syndicators. I think 30% of syndicators will say goodbye to the world of syndication.” - Neal Bawa
"The biggest part of your mindset today is, to tell the truth to your investors. But tell them about the opportunity that's coming up." - Neal Bawa
“You're gonna say, I don't want to buy any more multifamily. I have cash calls coming on four or five of my properties. Biggest mistake ever. The cash calls are the reason why the opportunity is so massive today.” - Neal Bawa
“The risk is out of our control. But as you continue to get educated about where things are moving, about the best moves to hedge yourself in challenging circumstances, that's how you're going to position yourself to be successful in the long term.” - Tyler Chesser
“Real estate is not day trading; it is about being successful in the long term.” - Tyler Chesser
“There are a lot of challenges in today's economy and today's market but there are also tremendous opportunities.” - Tyler Chesser
Links Mentioned:
Neal Bawa on LinkedIn
Multifamily University
Grocapitus Investments
Peter Zeihan's books
The Fourth Turning by Willian Strauss and Neil Howe
Principle for Dealing with The Changing World Order by Ray Dalio
Invest with CF Capital
About Neal Bawa
Neal Bawa is a technologist who is universally known in real estate circles as the Mad Scientist of Multifamily. Besides being one of the most in-demand speakers in commercial real estate, Neal is a data guru, a process freak, and an outsourcing expert.
Neal treats his $1+ billion-dollar multifamily portfolio as an ongoing experiment in efficiency and optimization. The Mad Scientist lives by two mantras. His first mantra is that: We can only manage what we can measure. His second mantra is that: Data beats gut feel by a million miles. These mantras and a dozen other disruptive beliefs drive profit for his 900+ investors.
Neal loves public speaking and is an energetic and humorous speaker. He also serves as CEO at Multifamily University, an apartment-investing education company. He is a top-rated, in-demand presenter at conferences and events across the country. Over 5,000 students attend his multifamily seminar series each year and hundreds attend his Apartment Magic Bootcamps. Tens of thousands listen to his podcast appearances and he has been featured in over 150 top-rated podcasts and radio shows. Neal’s asset management and revenue optimization techniques for multifamily are considered unique in the industry.
An Important Announcement from Tyler
E320 Peter Boockvar – Insights for Investor Action: Assessment of the Current Economic Landscape and Market Conditions from a Leading Voice in Finance
E319 Tyler Chesser – Think and Raise More Capital: The Secrets of Building Trust, Aligning Investor Interests and Becoming an Elite Equity Raiser
E318 Vinki Loomba – Vibrating on the Wavelength of Your Dreams: Unleashing Your Potential with Manifestation in Real Estate
E317 Brien Lundin – From Gold to Geopolitics and Macroeconomics: Expert Investor Perspectives for the Long-Term, Wise Investor
E316 Tyler Goble – How to Leverage Data Science to Transform Your Investments and Use Your Financial Success to Make Massive Impact
E315 Marc Weisi – From Wall Street to Main Street: Success in Real Estate and Leveraging it to Design Your Ideal Lifestyle
E314 Keith Wasserman – Compounding: Leveraging Common Sense, Grit, and Being a Contrarian to Scale Your Real Estate Holdings
E313 Dr. Mikki Lake – Practicing Medicine on Your Own Terms: From Overwhelmed to Free by Intelligently Leveraging Real Estate Investments
E312 Matt Faircloth – Unleashing Your Authentic Self: Adding Value and Attracting Opportunities in Real Estate and in Life
E311 Bernard Reisz – Investing in Great Assets, Elevating Your Tax Strategy & Leveraging the True Value of the NPV of What You Do with Tax Savings
E310 Chester Elton – Mastering the Art of Engagement: Fostering Teamwork and Collaboration for Success
E309 Mark Kenney – How to Invest, Grow, and Scale in Multifamily Real Estate, Navigating Challenges and Overcoming Setbacks
E308 Scott Lewis – Designing and Managing a Large Thriving Real Estate Investment Organization with Strategic, Operational and Tactical Excellence
E307 Marshall Goldsmith – Breaking Through Limiting Beliefs: Unleashing Your Potential for Success and Happiness with the #1 Leadership Thinker in the World
E306 Chris Salerno – Create Your Own Luck: Leveraging Ambition and Burning Desire, Working Smarter and Harder Than Anyone Else
E305 Charles Carillo – Leveraging Real Estate Challenges to Grow Your Portfolio and Using a Buffer to Protect and Compound Your Wealth
E304 Pete VanderVeen – Become a Better Leader and Real Estate Investor with Emotional Intelligence
E303 Tyler Chesser – The Power of Going Big: Unlocking Your Potential in Real Estate and Life
E302 Amanda Cruise - Unleashing Abundance: How Real Estate Can Transform Your Life
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