Episode Description
In this episode of Real Estate Runway, we are joined by Jeff Davis, a seasoned expert in Global Supply Chain and Logistics with over 17 years of experience in the field. Jeff began his career as a data entry clerk in a logistics company after Hurricane Katrina forced him to move from New Orleans to Houston. He quickly worked his way up the ranks by helping clients solve complex supply chain issues and eventually became a global sales representative for a Fortune 200 global firm. In 2015, Jeff began investing in real estate to earn commissions on his commissions, and has since grown his portfolio to include 952 doors as both a Limited Partner and General Partner, with a total value of over $100M. Throughout this episode, Jeff shares his insights into the current supply chain crisis and its impact on the real estate market, as well as his expertise on making smart investment decisions based on future product needs. Tune in to learn more from this seasoned expert.
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[00:00 - 09:58] Lessons on Supply Chain and Inflation
Inflation is a result of printing money in 2020, causing supply chain-induced inflationary time
The supply chain industry can predict future events up to 12 months, making it relevant to real estate development and renovation
The delicate nature of the supply chain allows it to be dynamic, unique, and touch every part of the globe
The world of supply chain foreshadows what is to come in the future, allowing for better preparedness and decision-making
[09:59 - 19:35] The Impact of Supply Chain Disruptions on Inflation
Supply chain disruption created a demand problem leading to a spike in pricing
Cost of goods sold has caught up to the high prices, vendors will increase prices again
There is a one-year lag time for the actual price level to work itself through the distribution channels
There is a potential end in sight due to the supply chain normalization, decrease in demand and shipping, and the federal reserve's interest rate hikes
[19:36 - 27:36] The Impact of Warehousing on the Rental Market and Real Estate
Real estate market is strong, especially the rental market for those who cannot afford to buy homes due to low-interest rates
Careful with lower-quality residents susceptible to job loss or lower income
Warehousing space demand increased due to 116 vessels parked outside Long Beach
Warehouses full, no space to store inventory, and importers canceling orders
Connect with Jeff:
Website: http://www.multifamilyadvice.com
Social Media: LinkedIn, Facebook
Quotes:
“Money is always moving, it's always in circulation. And so it eventually makes its way into certain pockets uh you know where a lot of the consumer spending goes.“ -Chad Sutton
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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.