Nov 3, 2022
Summary:
Economic growth is slowing, and with all of the economic
instability, it’s necessary to rethink your plan for success.
Jennings Smith comes on the show to talk about how you can do this
with real estate—specifically the commercial realm. Real estate is
one of the best ways to protect yourself from inflation because you
can use debt as a lever; cash left sitting around is going to
inevitably erode. Jennings provides some information on what’s
happening in the commercial real estate industry, and gives tips on
how to establish yourself whether you’re new to commercial real
estate or already involved. Listen in for expert insight.
Highlights:
-We’re seeing rising inventory in real estate, and rents are
peaking in many markets
-He has built up a real estate portfolio of over $60M
-Rents are peaking and even dropping. Is this a good time to invest
in real estate?
-Jennings primarily focuses on commercial real estate. Real estate
is one of the best ways to protect ourselves from inflation because
you can use debt to lever yourself
-This is a great time to get into multi-family real estate; if you
leave your cash sitting around, it is going to erode
-Prices have cooled off a little bit in the commercial space, but
we haven’t seen the drastic “fall off the cliff” we saw back in
2010
-Don’t sit around waiting; actively look for creative/non-retail
price deals
-Many people are not incentivized to sell right now
-There is a lot more inventory flooding the market with
multi-family real estate, but Jennings has not witnessed massive
motivation
-Many sellers are not willing to take a cheaper price unless they
have to
-More sellers are open to seller financing and other options
-If you don’t have a track record, you should probably start with a
single family home
-Building your reputation amongst brokers can help you generate
more deals
-If you see a property in your town that is overgrown, this
indicates that someone is not happy with their property. Calling
the number on the sign and talking to the owner is a great start to
sealing a potential deal
Useful Links:
Financial Survival Network
Jennings Smith