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Real Estate Runway - Chad Sutton - Insta
S1E55: Tokenization and the Effects of Inflation on the Real Estate Market
May 25, 2022 17 min
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Episode Description

Chad Sutton talks about how cap rates and multifamily will go under 4% across the board and stay there because of the effects of inflation, tokenization of real estate, and quantitative easing. He also believes that the assumption loan market will rise in cost due to demand for real estate assets. Additionally, inflation is currently at around 7.5%, which is above the rate that most people are expecting to experience in their everyday lives. Lastly, the current state of the market is due to quantitative easing and the effect it has on real estate prices.

[00:01 - 07:27] Opening Segment

  • Why cap rates on multifamily properties are going to sub 4%

  • Inflation, interest rates,and the effect of quantitative easing

  • Renting is the now owning

  • Cap rates for rental properties are currently at 74%
    Huge demand for rental housing
    The concept of tokenization of real estate

[07:27 - 15:12] Real Estate Tokenization’s effects on Interest Rates

  • The relationship between interest rates and cap rates in the real estate market

  • The effects of quantitative easing on the real estate market.

  • The role of supply and demand in pricing real estate assets.

  • Interest rates will affect cap rates in the rising direction

  • 100 basis points or 1% increase on rates

[15:13 - 16:35] Closing Segment

  • Will the real estate market continue to be robust?

  • The cyclical nature of the real estate market

Quotes:

"The way it's going to manifest itself, I do believe, is you're going to see an increase in pricing. And why is that? Because pricing is commensurate with the cost of capital."

"I still see real estate as a very robust market. I see it as a very robust investment."

LEAVE A 5 STAR REVIEW + help someone who wants to explode their business growth by sharing this episode. Find out how team Quattro can help you by visiting www.TheQuattroWay.com.

Real Estate Runway Podcast is all about alternative business and investment strategies to help you amplify life, and maximize wealth! Click here to find out more about the host, Chad Sutton.

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