I Had Insider Meetings with the BIGGEST Real Estate Investors – Here’s Their 2025 Strategy

I just sat down with some of the biggest Real Estate Investors in the entire country in this video I’m going to break down exactly what they’re doing what they’re avoiding and the risks that they see coming but more importantly how you could leverage this Insider knowledge to help you with your real estate investor so the first thing is their Outlook what do they see coming in the next 12 to 24 months so first let me start off while it was really really easy for a lot of syndicators and people just buying deals

and the Market just went up it was the same way for Wall Street everyone on Wall Street made a lot more money than they did on Main Street but just like those syndicators and just like those people that raised a bunch of money they also had a very rough two years as a result of the administration change the higher interest rates and all of the things that disrupted the market so right now there’s a lot of people that were doing Capital raising and investing and allocations into all these different

markets at the Wall Street level that have completely been dis railed over the last couple years and are now licking their wounds from having a really robust period of time to almost no business at all so we had a few hard years and now capital’s starting to move again as we know and there’s a bunch of reasons why it didn’t some of the more notable ones were the higher interest rates the higher inflation rates and of course the administration changed till that point before the new president people really

pulled back and now they’re still even a little heads to see what the new new Administration is going to do so the first thing is that they all believe and agree that inflation is here to stay nothing’s going down from a price standpoint maybe asset prices might go down and they already have so we’ve already seen asset prices go down for lots of reasons which we’ll go into in a minute but everyone believes that inflation is here to stay and it’s going to be a lot harder for the consumer the second thing is we’re going to see a lot

more issues around affordability so affordability is by far be the problem for the next 12 to 24 months for the person that’s either buying or renting a home or just trying to survive on the paycheck that they already are getting for example they’re only getting 2 to 4% annual weed growth which is definitely not keeping up with the high cost of goods and services the third one of course is the interest rates nobody knows where interest rates are heading the federal funds rate has gone down even under the last Administration they

started to reduce it by a quarter point here quarter point there but even the federal funds rate that has gone down the 10year treasury has gone up so everybody’s concerned that the federal funds rate has gone down but the treasury rates have gone up therefore the cost of borrowing or acquisition costs or refinance costs are all pretty much at a standstill right now and banks are hedging they’re offering just between 50 and 60% loan to values hardly anything above that at all for existing property and even new construction if

they’re even doing that at all because of of high interest rates and because of high inflation the people who are actually getting the money the contractors and developers the people in the local markets pulled back they pulled back because they were unable to deliver product at a reasonable price because everything’s going up especially the cost of borrowing so what has that done that’s created a supply problem when it costs more for a contractor or a developer to deliver product to a market then they pull back because the consumer

either can or can’t pay for that and right now we still have an affordability problem so what we have today is we have a lot of Supply that started two or three years ago that’s hitting the market today and it’s creating what I would call short-term disruption short-term benefit to the renter concessions flat Ren those kinds of things what they all know and what you now know is that at some point all those units that are being delivered right now will be absorbed and then after that there’s not a lot under construction

that will open in the future in the next two or three years and that again is going to create a massive affordability problem the tenants will have a short-term relief period after that you’re going to start to see even more affordable problem rents are going to continue to go up because we’re moving into a renter nation and we don’t have the supply of property to be able to accommodate all the people moving that would normally be buying single family houses because single family houses are not going down in price except for heard

some areas and interest rates don’t look like they’re coming down anytime soon right now we’re seeing some of the best real estate deals that we’ve seen in years and while most investors are sitting on the sidelines opportunities are opening up every single day if you want to see the deals we’re working on how we structure our deals and why we think today is the best time to invest just click on the link below the gap between the mortgage and the rent is at an all-time high which means that more

and more people are going to be forced into the rental housing site and we don’t have the supply to accommodate it so it’s only going to lead to one thing the high cost of rent which is going to translate into higher values into the multif family and the Builder rent space so Wall Street sees this just like you should be seeing this all you got to do is look out 18 to 24 months and you’ll see it the reason I had over 20 meetings with all these different groups now the Wall Street money is now looking for

local operators to put that money to work for them here’s how the people on Wall Street get their money they get it from you you put it into an insurance policy you put it into a pension you put it into a retirement account and then it makes its way all the way up to Wall Street and then Wall Street reinvests that back into guys like me and there should be no reason that you shouldn’t be trying to tap into that same money because it’s really your money in the first place so in those meetings that I

had the big money or the Wall Street money in all the meetings that I had they all had the same thing they were looking for the right operator in the right Market just no different than you would if you bought a piece of real estate somewhere else and we’re looking for a property manager they’re looking for somebody to invest alongside of them as a partner to be able to manage and pick assets for them that’s what they’re doing no different than you bought something out of state and we’re looking

for a property measure it’s the same process so number one they’re looking for a good operating partner with a good track record so the first part of every one of these meetings all around our track record the markets we like and what we see the second part of all those meetings is what are the terms what markets do they like and what does the underwriting process look like in other words if I find the deal and I give it to them do they make a decision in a day a week or a month that’s really important from my standpoint because in

these market conditions today you have to have somebody that can move really quickly so the first thing we’re looking for is as a partnership are we aligned do they have the money is it simple to go through the process what are the terms and conditions and do they trust us to be able to place that money and manage it correctly in the time frames that we all decide the second big theme that kept coming up over and over and over were operating costs now you guys all know and you see insurance rates for

example are up really really high or property taxes or utilities or even just some basic Capital cost for appliances and flooring and things like that so that was kind of the theme of the day as well this is precisely why I like having a property management company because as you guys all know when I wasn’t really buying in the last few years we focused on our operational costs our systems and our processes and tried to buy down as many of those kinds of things and manage all those things so that I knew all the

costs running through our company were being watched each and every week as an example one of the exercises that came out of that from my company was we hired a full-time director of procurement and all that person does they review every single contract and all our different companies each and every year in other words nothing gets automatically renewed everything goes out to bid and everything gets FedEd that is one way that we’re trying to control operating costs which we believe are going to

continue to grow up and be more and more the problem one of the greatest questions by some of the smarter groups was what did you underride for rent growth what did you underride for concessions and what did you underwrite for operating costs and what did you underwrite for your interest rates current and in the future those are very very good questions because those are things that we debate all day long internally when you’re talking to some of this big money from Wall Street those are the things they want to know what

are the assumptions that you’re following and how are you managing all those little details inside of each property how are you managing each one of those details inside of each asset so the first thing is you guys should be at least considering what the big moneyy is doing right now where it’s headed and why what markets and how they’re underwriting these deals so number one that’s investing in landlord Friendly Markets and staying away from these high regulatory markets this came up a lot where they’re saying the last thing they

want to do is go into a market where potentially there could be rent control later to cap the rent growth if they’ve underwritten a certain way for example where are property taxes headed in a certain market and where are insurance rates headed in a certain Market those are things that you should know and those are things that they asked the second thing is watching the interest rates obviously nobody knows where interest rates are going to go but there’s lots of ways to hedge risk against interest rates and one of them

of course is fixed rate debt if you’re buying something that has really good fundamentals in the future and you have fixed straight debt then you don’t necessarily have to worry about where rates go if rates go down your refinance going down rates go up heads that mortgage payment you don’t have to worry about the cash flow potentially for rate go out and of course these firms are extremely bullish on housing and that could be single family it could be build a rent it could be multif family and

they’re staying away from office at the moment especially with now the new Doge issues coming up around the federal buildings some of the other leases that they’re going to break they think that office buildings are going to be even in worse shape in 2025 and 26 so every single one of these firms are looking for great operators cuz if you think about it if you’re giving me money you’re also looking for a great operator it’s no different they just have more zeros and more commas if you want to grow as an investor you have to learn

how to manage or manage a manager to maximize your Returns on any investment that you make that’s why I highly recommend you watch this next video on how to be a great landlord