Welcome back to another episode of the Real Estate Asset Management podcast!
The conversation today centers around the current multifamily environment.
Gary talks about the best time to invest in real estate & how to get good deals in this high level of unpredictability of stock market fluctuations, the 24 hours news cycle, interest rates, and rising inflation. To a lot of investors out there, don't follow the data, don't follow fundamentals. It's a scary truth.
He talks more about how they (Break Of Day capital) invest in submarkets that they know well with low cost of living, tremendous rent growth predicted, a strong job market, and still a ton of value to be added to these properties. It's not a city where everything has been picked over.
Real estate is a great hedge against inflation. As inflation rises, so do property values and the rent owners can charge. Now, you can't expect the same rentals they have been experiencing, and still may get it in the best markets, but it's better to discount it quite a bit when you underwrite it.
Gary shares value-add information on current deals & how real estate offers great tax benefits & makes a good amount of profits.
Be sure to like and subscribe to our podcast so you don’t miss another episode!
Key Points From This Episode:
Tweetables:
If you're an investor, do your due diligence on operators you wish to invest with because it's not about IRR or even cash flow. Picking an operator that has adjusted their underwriting for the softer curve, if they're using floating debt, a good fixed rate, or a higher average cap on their underwriting, extra working capital, and in areas of high population growth are very important. { Gary Lipsky}
Real estate also is a hard asset. If we don't make our prediction or an analyst doesn't meet an analyst prediction for the second quarter in our proforma, our value doesn't go down 25% like a stock. We just keep creating more value by executing our business plan, that's why I love real estate.{ Gary Lipsky}
It starts with finding good deals underwriting conservatively, creating a strong business plan, getting good debt and executing that business plan. That's what good operators do during all phases of the cycle. { Gary Lipsky}
About the host:
Gary has been a real estate investor since 2002, with over 2500 units under management and a $102 million AUM. Gary is also a co-founder of the Asset Management Summit and the Real Estate Asset Management Podcast, as well as a co-author of the book Best in Class. His secret sauce is his asset management competence, which he began cultivating at an early age.
Follow us:
✅ Join our group for the latest updates – https://tinyurl.com/mhp5t6 ⠀
✅ LinkedIn - https://www.linkedin.com/company/break-of-day-capital/⠀
- https://www.linkedin.com/in/gary-lipsky/
✅ YouTube - https://www.youtube.com/channel/UCSgABJxxi_6yrWq875pkS9w
✅ Instagram - https://www.instagram.com/breakofdaycapital1/
Today’s Show Sponsor :
Garzella/Multifamily Risk Advisors
Links Mentioned in Today’s Episode:
Asset&
