E293 Neal Bawa - The Financial Crisis of 2023 and The Impact on Your Real Estate Investments, Risk Mitigation Moving Forward and Seizing Opportunities In a Volatile Market

Elevate with Tyler Chesser - The Real Estate Podcast for Investing, Mindset and Personal Development

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:

• Neal weighs in on the recent banking collapse, the state of the US financial system, and the economy.
• What caused the banking collapse, how social media accelerate bank runs, and the Treasury’s and FDIC’s response to control the contagion.
• Did recklessness and a lack of investing foresight on the part of the banks as the Fed fought inflation by rapid interest rate hikes lead to the banks’ downfall?
• What is Neal’s outlook on the credit markets amidst the banking crisis aftermath?
• Neal explains how and when interest rate hikes impact the economy.
• What can investors do to protect their investments amidst economic and financial instability?
• What are Neal's predictions for the single-family and multifamily markets, the investment opportunities, suitable time to buy, and underlying factors of distress in the marketplace?
• Neal’s forecast on the interest rates’ trajectory in the next two years.
• Is the US headed to an economic recession? When?
• Neal’s 5-year and 10-year outlook on the US economy
• Neal’s contact information

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.