Today’s episode of the Real Estate Syndication Show explores the finer points of real estate investing in 2024, offering valuable insights for both seasoned investors and newcomers. Join us as we delve into:
- The Impact of Rising Interest Rates: We discuss how inflated exit cap rates and easy money are fading, emphasizing the importance of realistic underwriting in today’s market.
- Data-Driven Insights: We reveal the data sources we trust, including contrarian perspectives and industry leaders like RealPage and CoStar. Learn about the valuable anecdotal information gleaned from operators across the nation.
- 2024 Market Predictions: We anticipate increased new construction deliveries in 2024, potentially leading to a temporary rent dip. However, we foresee solid rent growth and a better rate environment in 2025, paving the way for increased transaction volumes.
- The Bull Cycle Ahead: We predict the potential return of the real estate bull cycle in 2026 and 2027, driven by lower product deliveries and subsequent rent and valuation growth. We also analyze the Federal Reserve’s potential influence on the market.
- Challenges for Operators: We address the struggles faced by operators with floating-rate debt, rising interest rates, and increasing operating costs. We discuss the potential for market distress and offer strategies to navigate these challenges.
- Passive Investor Advice: We provide crucial guidance for passive investors, emphasizing certainty over high returns and careful consideration of the risk-reward balance. We also share our investment thesis shift towards newer properties and long-term holds with predictable returns.
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About Sam Rust:
A lifelong learner, Sam Rust is a managing partner at Life Bridge Capital and full-time investor in commercial real estate. Sam graduated from Thomas Edison State University with a BSBA in Business Management and currently lives in Colorado with his wife and 5 children. Sam has been active in commercial real estate since 2017 and has led the acquisition of a portfolio of properties across Colorado and Idaho with a value in excess of $300 million.
When not underwriting or touring properties, Sam enjoys spending time outdoors with his family chasing beautiful views, Ultimate Discs, or big game.
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