Nov 3, 2022
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.
-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