Taylor takes a deep dive into the current state of the real estate market with Cody Laughlin, one of three managing partners at Blue Oak Capital. With many multi-family operators struggling to see outsized increases in rent growth and occupancies, there's no denying a downturn in progress. However, Cody shares his experience underwriting and operating real estate deals during downturns, emphasizing the importance of running numbers on real estate deals during a downturn and adapting business models to make it through these challenging times. Real estate investing has become mainstream, leading to many new investors coming into the space. However, with competition fueling accelerated asset values, there is now a downturn in progress with softening occupancies, rent premiums, and delinquencies. Despite this, Cody believes there will still be opportunities for those who are prudent in their analysis and assumptions.
This episode gives valuable insights into navigating the current state of the real estate market while positioning oneself well for future cycles. Tune in now!
[00:01 - 06:08] Opening Segment
[06:09 - 14:08] Real Estate Investing Goes Mainstream
[14:09 - 19:07] Adopting Conservative Underwriting Strategies During Downturns
[19:08 - 25:55] Retaining Tenants and Cutting Expenses During Market Downturns
[25:56 - 29:59] Closing Segment
"Focusing on resident retention and customer service is absolutely crucial right now." - Cody Laughlin
"Now's the time to really be conservative in your underwriting and make sure that you're building in layers of protection to mitigate your downside risk." - Cody Laughlin
"Never be afraid to fail forward. Don't be afraid to make mistakes and don't be afraid to fail because every failure is a learning opportunity." - Cody Laughlin
Connect with Cody!
Free coaching call: 832-7431400
Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/
Track your rental property's finances with Stessa. Go to www.escapingwallstreet.com.
Join our Passive Investor Club to access passive commercial real estate investment opportunities.
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