3 Strategies for the Next Real Estate Boom

In a recent podcast, I made a bold prediction about the next real estate boom. Back in 2020, when the COVID-19 pandemic hit, I predicted a significant real estate boom. Many people thought I was crazy, but to me, it was just a matter of connecting the dots. With a massive injection of money into the economy and historically low-interest rates, the stage was set for explosive growth in real estate.  

My most recent podcast dives deeper into the current market trends and prepares you for the next real estate boom: 

I'm going to break down some of the key market factors that are driving the real estate market right now. I'll also provide you with insights into what I believe is about to happen and how you can implement profitable and safe strategies. Let's dive into these market factors:

1. Historically High Inflation: The recent surge in inflation has led to a significant increase in interest rates and new lending restrictions by banks. Loan-to-value ratios (LTVs) have decreased from 80% to 55-60%, and they may continue to tighten.
3. Rise in Insurance Costs: Insurance costs have been on the rise, particularly in areas where it has become a crisis. This presents both challenges and opportunities in the real estate market.
5. Transfer of Wealth: The largest transfer of wealth in history is underway, with $80 trillion of debt equity from Baby Boomers being passed on to Millennials. This wealth transfer is already happening and will continue over the next two decades.
7. Recessionary Markets: Some regions are experiencing economic recessions, and there are concerns about regional banks facing financial challenges.
9. Distrust in Financial Markets: There is an increased distrust in financial markets, including concerns about the strength of the US dollar due to factors like the shift away from the Petro dollar.
11. Construction Costs: While lumber costs have started to decline, other construction costs remain high.
13. Increased Demand for Housing: The housing market is seeing increased demand due to the growth of the Millennial generation, coupled with a limited supply of housing due to various factors.

Now, let's discuss the strategies you can implement to thrive in this evolving real estate landscape:

1. Invest in Cash-Flowing Real Estate During Inflation & Consider Multi-Family Properties and Short-Term Rentals:

• Warren Buffett once said that during inflation, the safest place to be is in cash-flowing assets. Consider investments that provide consistent cash flow, as rent tends to increase during inflation.

• Look for multi-family properties with existing cash flow or value-add opportunities that can appreciate with inflation.  Short-term rentals or Airbnb properties can also be lucrative, especially in areas with high demand.

3. Explore Developmental Real Estate:

• Consider opportunities like RV resorts or hotel-to-apartment conversions.
• These options can be more affordable and have shorter development times compared to ground-up construction.

4. Short-Term Debt Fund:

• Explore short-term lending or hard money lending opportunities, as banks may pull back on lending.
• Lending on real estate deals with a lower loan-to-value ratio can be a safer investment.

Remember that these strategies can be tailored to your specific circumstances and goals. The key is to stay informed, adapt to market changes, and identify opportunities where others might see challenges.

While the current real estate market presents its share of uncertainties and challenges, it also offers a wealth of opportunities for those who are prepared and willing to take action. As someone who has been actively involved in the real estate market, I encourage you to stay proactive and explore these strategies to make the most of the next real estate boom.

Take care, 

Ryan

PS - if your interested in discussing passive income real estate opportunities, go to: https://linktr.ee/serviocapital