Episode Description
Host Chad Sutton joins Kim Wendland, Co-Founder of Quattro Capital and Director of Asset Management, to explain the impact of Covid-19, the Fed's response, and how it can be beneficial for investors looking to buy property. They discuss why occupancy is down in some areas while rent growth has slowed. They also share tips on how to approach investing in real estate during this time, including getting sponsorships, monitoring the rent-to-income ratio, and setting sails correctly to reach goals.
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[00:00 - 07:50] Exploring the Impact of Economic Long Covid with Kim Wendland
• Dr. Peter Linman's analogy of "economic long covid" to explain the current economy
• The complexity of the economy and how different sectors have been affected by the pandemic
• Volatility of change as we get back to economic normal is one of the most difficult things to handle in business
[07:50 - 16:05] Fed's Rear View Mirror Shows Result of Attempt to Slow Economy
• Banks are having difficulty providing loans due to Fed's two levers: interest rates and money supply
• Fed is trying to slow down the economy, but according to Kim, they are well-intentioned people
• Rear view mirror is starting to show the result of their campaign
• Economists believe we're past peak inflation
[16:06 - 24:17] Real Estate Remains a Top Investment Despite Fluctuating Interest Rates and Inflationary Times
• Real estate is a good investment in times of fluctuating interest rates, inflation, and recession
• Rents are rising due to high inflation and wages, and real estate values are appreciating
• There is not a national real estate market; individual markets have their own supply and demand dynamics
[24:18 - 32:04] A Look at Occupancy, Prices, and Rent Growth
• Houston and Huntsville, Alabama, have a lot of demand but not enough housing
• National numbers are still way below what is needed to catch up with population growth
• Transaction volume is down due to capital on the sidelines
• Rent growth has slowed. The rent income ratio needs to be monitored
• Expensive cities like San Francisco and New York City have rent challenges
[32:05 - 35:04] Tips on Real Estate Investing
• Real estate is local, and comparing different markets makes no sense
• Current stress in a portfolio has nothing to do with real estate fundamentals
• Jim Rowen quote: "It's not the blowing of the wind but the setting of the sail that determines our direction in life"
• Now is a great time to invest in real estate due to better pricing on acquisitions
Quotes:
"If you have courage in capital when others don't, you're gonna make a buck." - Chad Sutton
Connect with Kim through LinkedIn, Facebook, or visit https://www.thequattroway.com/kim-wendland
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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.
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