All Forum Posts by: Neal Bawa

Neal Bawa once again delivers a power-packed talk about key trends you ABSOLUTELY MUST know about before you start planning your 2018 and beyond investments. This is a not-to-be missed investment presentation for both the analytical and the opportunistic investor. Hold on to your seat because the presentation is fast, fact-driven, and entertaining.

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TUESDAY, December 11th 6:00 PM Pacific | 9:00 PM Eastern
Click here to Register
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WE'LL REVEAL MAJOR REAL ESTATE TRENDS...

The Booming US and World Economies
Can they support more growth? What to expect in 2018, 2019, and beyond...

The Looming Impact of Rising Rates
Including how many interest rate hikes are likely in 2018 and when the shockwaves will hit real estate the hardest. This is an important consideration for making buy, hold, and sell decisions.

The Real Estate Trifecta
What it is and the jolt it's already having on 2018 real estate prices all over the country.

The Mass Exodus That Has Quietly Started...
and will have a big impact on real estate. It is reshaping the country, so make sure you factor this in your investment decisions. It will be very costly to get caught on the wrong side of this little known trend.

Which Cities Have Rebounded To Pre-Recession Peak Prices?
...and where does California stand in the list?

The Top 3 Likely Picks For Amazon’s HQ2
With five billion dollars and 50,000 jobs at stake, HQ2 can change a city’s future.

NEAL WILL REVEAL THE "TOP 10" CITIES SHOOT-OUT RESULTS
Rankings from Trulia, Zillow, Forbes, Realtor.com, ApartmentList and Yardi Matrix will make city and state trends crystal clear. Before you leave, you will know the best cities in the U.S. to invest in, according to the analysis from the top Real Estate companies in the country.

TOP 10 Cash Flow These areas are poised for strong rent growth, providing excellent cash flow in 2018 and beyond.
TOP 10 Metros For Fix & Flip These hot areas are known for having a lot of cash buyers. One of the CA cities on this top 10 list was a big surprise.
TOP 10 Appreciation Metros If you are a buy and hold investor looking for price growth, check out these strong metros.

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TUESDAY, December 11th 6:00 PM Pacific | 9:00 PM Eastern
Click here to Register
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PLUS, NEAL GOES OUT ON A LIMB AND MAKES 2 BOLD PREDICTIONS

Discover His Top California Pick (and 2 Honorable Mentions):
Neal's top pick is a small affordable CA city with good cash flow and strong employment, while still being fairly affordable. It has been ranked one of the top performing small cities and probably hasn't even been on your radar, until now...

The Out-of-State Metro At The Very Beginning Of It's Run:
This metro is one of the lowest cost metros in the Pacific Northwest. You will frequently find it on "best cities to live" lists. Real estate owners enjoy low property tax rates. It is also an up-and-coming city for college grads.

About Our Presenter:

Neal Bawa is CEO at Grocapitus Investments, a commercial real estate investment company. Neal sources, negotiates and acquires commercial properties across the U.S. for 200+ investors. His current portfolio contains over 1000 units, with a projection of at least 2000 units in 12 months.

Neal speaks at Multifamily events, IRA events & meetups across the country. Nearly 2,000 students attend his multifamily seminar series each year and hundreds attend his Magic of Multifamily boot camps. Neal is the co-founder of the largest Multifamily Investing Meetup network in the U.S. (BAMF), a group of investors that has over 3000 members.

Join popular presenter and multifamily expert Neal Bawa with his guest presenter Matt Ryan for 60+ minutes of eye opening real estate learning.

WHAT IT IS
An eye-opening, research driven look at one of the best tax deductions for real estate investors ever. This tremendous new tax incentive is paving the way for gigantic profits for savvy investors.

HOW INVESTORS BENEFIT
If you are facing capital gains of any kind (stocks, business sale, or real estate) we'll show you how this new tax law can help you defer, and in some cases completely erase, federal taxes... legally.

WHAT AREAS QUALIFY
The size of the opportunity zones is absolutely enormous. In fact, we are already investing in some of the designated areas because they are attrative even without the huge tax incentives.

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Monday, December 10th, 6PM PST
Click Here to Register
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WHAT YOU'LL LEARN
- The in's and out's of this relatively obscure tax incentive hidden in the tax reform package, and the recent change that is causing it to take off.
- How you can legally pay absolutely ZERO federal capital gains taxes when you take advantage of this huge tax incentive designed to encourage investment in specific communities.
- Best strategies for unlocking maximum tax savings for real estate investors and apartment syndicators.
- How you can sell highly appreciated properties in high price areas, and exchange them tax-deferred for high-income properties.

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Monday, December 10th, 6PM PST
Click Here to Register
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MEET YOUR PRESENTER:

NEAL BAWA (Founder and CEO, MultifamilyU)

Neal owns and manages an extensive real estate single family and multifamily portfolio in 7 U.S. States. Neal often speaks at Multifamily events, IRA events & meetups across the country. Nearly 2,000 students attend his multifamily seminar series each year and hundreds attend his Multifamily boot camps. He is the co-founder of the largest Multifamily Investing Meetup in the U.S. (BAMF), with 3000 members. He leads the company and is driving the syndication and acquisition of multifamily properties. Neal's past experience includes 17 years of revenue (P&L) experience as the senior-most executive in a California education company with over 350 employees and $40MM in revenue.

Neal is a backyard tomato farmer and a protein diet health nut. He believes in positivity and Karma, is passionate about cricket and about the enormous potential of self-driving electric vehicles to solve the global climate crisis.

Join Neal Bawa for 60 minutes of the most eye opening (and potentially lucrative) real estate learning of your life.

THE "DOUBLE IN 5" METHOD
Discover how multifamily experts consistently double investor money in 5 years, and leverage their approach for your own investments.

LOCATION MASTERY
Real-time location analysis. Thousands of students have been amazed by the elegance and simplicity of Neal's city and neighborhood picking method.

PERSUASIVE FUND RAISING
The most influential charts and stats to show investors, proving the investment is lucrative (and have them asking to give you money before you even ask.)

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Saturday, December 15, 11:15 AM PST
Click Here to Register
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WHAT THE WORKSHOP WILL BE LIKE

- Follow along as Neal performs a simple series of high speed web demos that will allow you to become an expert on ANY city or ANY neighborhood in the U.S. in just 60 minutes flat.

- Neal will take you on a fascinating and eye opening map-driven journey through the U.S. where you will learn how to use critical metrics like household income, poverty level, and unemployment levels to select cities and neighborhoods, in a graphical, simple to use way.

- Watch in amazement as Neal shows you the path of progress as it flows like a river through a city, visually identifying the best investment locations.

- By the end of the workshop, you will be able to pull up any city in the U.S., and confidently pick the fast growing portions of the city, point out the path of progress, and outline the zero-growth (and negative growth) areas of the city.

- All demos will be performed using free tools that you can access without a subscription.

WHAT OTHERS SAY ABOUT NEAL'S TRAINING

"Neal's presentations are fantastic, always extremely informative, detailed and well organized. He is always happy to share his knowledge and great tips with group members and this is very helpful" - Peter B

"Neal's presentation was filled with invaluable information that is not readily available to the average investor. Many many hours of research must have gone into this presentation! Thank you guys for sharing it with me!!”
- Carlos Molina

"Super Meetup event. Neal is an expert in real estate and rentals. He is the best teacher I have met in the last 3 decades and he is willing to share his knowledge to all attendees, including some potential competitors down the road. Thank you, Neal” - Eugene Sussli

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Saturday, December 15, 11:15 AM PST
Click Here to Register
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Each workshop is limited to 30 participants
Please do not RSVP unless you are SURE that you are coming.

Join Neal Bawa with special guest presenter Kim Lisa Taylor, founder of Syndication Attorneys PLLC in an eye-opening webinar about discovering how to structure your syndicated multifamily deal to raise money from private individuals. Raising money to fund your multifamily deals is the key to bigger deals and accelerated wealth creation.

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Tuesday December 4th, 6pm Pacific | 9pm Eastern
Click Here to Register
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During This Live Webinar, You Will Learn

~ What's a Security?
~ How does it relate to my real estate investing business?
~ What could happen if I don't comply with securities laws?
~ Securities Registration versus Exemptions
~ What Does a Securities Offering Include?
~ How You Make Money as a Syndicator

Don't miss out on this critical knowledge!

ABOUT YOUR PRESENTERS:

Neal Bawa

Founder/CEO
MultifamilyU and Grocapitus Investments

Neal owns and manages an extensive real estate single family and multifamily portfolio in 7 U.S. States. Neal often speaks at Multifamily events, IRA events & meetups across the country. Nearly 2,000 students attend his multifamily seminar series each year and hundreds attend his Multifamily boot camps. He is the co-founder of the largest Multifamily Investing Meetup in the U.S. (BAMF), with 3000 members. He leads the company and is driving the syndication and acquisition of multifamily properties. Neal's past experience includes 17 years of revenue (P&L) experience as the senior-most executive in a California education company with over 350 employees and $40MM in revenue.

Kim Lisa Taylor
Founder
Syndication Attorneys PLLC

Kim Lisa Taylor, Esq., is the founder of Syndication Attorneys PLLC, a boutique corporate securities law firm that helps clients nationwide with their federal real estate securities offerings.
Kim focuses on helping small business owners/developers structure and convey their investment opportunities in a way that will attract private investors, both domestic and foreign. More than a law firm, Syndication Attorneys PLLC helps entrepreneurs create successful investment companies.
Licensed as an attorney in California since 2002, Kim has made corporate securities law her primary focus since 2008. She has been licensed as an attorney in Florida since 2012.

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Tuesday December 4th, 6pm Pacific | 9pm Eastern
Click Here to Register
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Join us online as we show you behind the scenes our investment property selection process. We will go through the stages involved in assessing a property, the questions that we ask, the assumptions we make, and how they influence the property analysis process.

During This Live Webinar, You Will Learn
~ 4 important metrics you need to know when evaluating a property and what values to look for
~ The first "make or break" filters to analyze a deal, so you don't waste time and resources
~ The "Holy Trinity" - what it is and why it's important
~ 5 specific things you must look for in an operating memorandum
~ Operating memorandum information to be cautious about, and validate externally
~ 3 costly but common pitfalls to avoid

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Tuesday, November 27th 6PM Pacific
CLICK HERE TO REGISTER
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If you want a proven system for buying multifamily properties, then this live training is for you!

You Will Discover:

Prefacing an Assessment: Identifying your goals
Reading the Property Package: Keywords to watch out for
Vacancies: Understanding economic vacancies vs physical vacancies.
Avoiding Surprise Expenses: Asking the right questions can save hundreds of thousands of dollars.
Team: Resources and partners you need on your team.
Numbers: The nitty, the gritty, numbers game.
Understanding Value-Add: The different types of value adds, costs vs returns
Capital Stack: financing and assumptions
Assessing Returns: Tying in with your goals

Meet our presenter:

Anna Myers
Director, Acquisitions
Grocapitus Investments

Anna works very closely with Neal to underwrite properties and make offers for Neal’s clients. Her background as a software developer gives her a distinct edge when it comes to data-rich financial analysis. She is a graduate of Neal’s Apartment Magic boot camp.

Important: This is a live virtual online event. You only have one chance to join us LIVE. Don’t miss it!

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Tuesday, November 27th 6PM Pacific
CLICK HERE TO REGISTER
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Join popular presenter and multifamily expert Neal Bawa with his guest presenter Matt Ryan for 60+ minutes of eye opening real estate learning.

WHAT IT IS

An eye-opening, research driven look at one of the best tax deductions for real estate investors ever. This tremendous new tax incentive is paving the way for gigantic profits for savvy investors.

HOW INVESTORS BENEFIT

If you are facing capital gains of any kind (stocks, business sale, or real estate) we'll show you how this new tax law can help you defer, and in some cases completely erase, federal taxes... legally.

WHAT AREAS QUALIFY

The size of the opportunity zones is absolutely enormous. In fact, we are already investing in some of the designated areas because they are attrative even without the huge tax incentives.

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Monday, November 19, 6 PM PST

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WHAT YOU'LL LEARN

- The in's and out's of this relatively obscure tax incentive hidden in the tax reform package, and the recent change that is causing it to take off.

- How you can legally pay absolutely ZERO federal capital gains taxes when you take advantage of this huge tax incentive designed to encourage investment in specific communities.

- Best strategies for unlocking maximum tax savings for real estate investors and apartment syndicators.

- How you can sell highly appreciated properties in high price areas, and exchange them tax-deferred for high-income properties.

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Monday, November 19, 6PM PST

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MEET YOUR PRESENTERS:

NEAL BAWA (Founder and CEO, MultifamilyU)

Neal owns and manages an extensive real estate single family and multifamily portfolio in 7 U.S. States. Neal often speaks at Multifamily events, IRA events & meetups across the country. Nearly 2,000 students attend his multifamily seminar series each year and hundreds attend his Multifamily boot camps. He is the co-founder of the largest Multifamily Investing Meetup in the U.S. (BAMF), with 3000 members. He leads the company and is driving the syndication and acquisition of multifamily properties. Neal's past experience includes 17 years of revenue (P&L) experience as the senior-most executive in a California education company with over 350 employees and $40MM in revenue.

Neal is a backyard tomato farmer and a protein diet health nut. He believes in positivity and Karma, is passionate about cricket and about the enormous potential of self-driving electric vehicles to solve the global climate crisis.

MATT RYAN (Founder, Re-Viv)

Matt Ryan is an entrepreneur now on his second social impact based company. He has an extensive background in construction and building technology having worked across multiple sectors: new and existing residential and multifamily buildings, light commercial in addition to research and grant work with non-profits and public utilities.

Re-viv is a real estate investment company that focuses on addressing market inefficiencies in community revitalization work. We provide profitable investments for our stakeholders while improving the communities we serve.

In his spare time, Matt is an avid outdoorsman, Father and active housing policy and building technology advocate.

@Don Spafford, just register. A recording will be sent the next day.

Opportunity Zones: Unprecedented New Real Estate Tax Strategy: What You Need To Know

Join popular presenter and multifamily expert Neal Bawa with his guest presenter Matt Ryan for 60+ minutes of eye opening real estate learning.

WHAT IT IS

An eye-opening, research driven look at one of the best tax deductions for real estate investors ever. This tremendous new tax incentive is paving the way for gigantic profits for savvy investors.

HOW INVESTORS BENEFIT

If you are facing capital gains of any kind (stocks, business sale, or real estate) we'll show you how this new tax law can help you defer, and in some cases completely erase, federal taxes... legally.

WHAT AREAS QUALIFY

The size of the opportunity zones is absolutely enormous. In fact, we are already investing in some of the designated areas because they are attrative even without the huge tax incentives.

-------------------------------------------------
Monday, November 12, 6PM PST
Click Here to Register
--------------------------------------------------

WHAT YOU'LL LEARN

- The in's and out's of this relatively obscure tax incentive hidden in the tax reform package, and the recent change that is causing it to take off.

- How you can legally pay absolutely ZERO federal capital gains taxes when you take advantage of this huge tax incentive designed to encourage investment in specific communities.

- Best strategies for unlocking maximum tax savings for real estate investors and apartment syndicators.

- How you can sell highly appreciated properties in high price areas, and exchange them tax-deferred for high-income properties.

-------------------------------------------------
Monday, November 12, 6PM PST
Click Here to Register
--------------------------------------------------

MEET YOUR PRESENTERS

NEAL BAWA (Founder and CEO, MultifamilyU)

Neal owns and manages an extensive real estate single family and multifamily portfolio in 7 U.S. States. Neal often speaks at Multifamily events, IRA events & meetups across the country. Nearly 2,000 students attend his multifamily seminar series each year and hundreds attend his Multifamily boot camps. He is the co-founder of the largest Multifamily Investing Meetup in the U.S. (BAMF), with 3000 members. He leads the company and is driving the syndication and acquisition of multifamily properties. Neal's past experience includes 17 years of revenue (P&L) experience as the senior-most executive in a California education company with over 350 employees and $40MM in revenue.

Neal is a backyard tomato farmer and a protein diet health nut. He believes in positivity and Karma, is passionate about cricket and about the enormous potential of self-driving electric vehicles to solve the global climate crisis.

MATT RYAN (Founder, Re-Viv)

Matt Ryan is an entrepreneur now on his second social impact based company. He has an extensive background in construction and building technology having worked across multiple sectors: new and existing residential and multifamily buildings, light commercial in addition to research and grant work with non-profits and public utilities.

Re-viv is a real estate investment company that focuses on addressing market inefficiencies in community revitalization work. We provide profitable investments for our stakeholders while improving the communities we serve.

In his spare time, Matt is an avid outdoorsman, Father and active housing policy and building technology advocate.

Join popular presenter and multifamily expert Neal Bawa for 60 minutes of the most eye opening (and potentially lucrative) real estate learning of your life. He will be discussing the following points:

THE "DOUBLE IN 5" METHOD
Discover how multifamily experts consistently double investor money in 5 years, and leverage their approach for your own investments.

LOCATION MASTERY
Real-time location analysis. Thousands of students have been amazed by the elegance and simplicity of Neal's city and neighborhood picking method.

PERSUASIVE FUND RAISING
The most influential charts and stats to show investors, proving the investment is lucrative (and have them asking to give you money before you even ask.)

-------------------------------------------------
Saturday, November 17, 11:15 AM PST
Register here: www.multifamilyu.com/showandtell
--------------------------------------------------

WHAT THE WORKSHOP WILL BE LIKE:

- Follow along as Neal performs a simple series of high speed web demos that will allow you to become an expert on ANY city or ANY neighborhood in the U.S. in just 60 minutes flat.

- Neal will take you on a fascinating and eye opening map-driven journey through the U.S. where you will learn how to use critical metrics like household income, poverty level, and unemployment levels to select cities and neighborhoods, in a graphical, simple to use way.

- Watch in amazement as Neal shows you the path of progress as it flows like a river through a city, visually identifying the best investment locations.

- By the end of the workshop, you will be able to pull up any city in the U.S., and confidently pick the fast growing portions of the city, point out the path of progress, and outline the zero-growth (and negative growth) areas of the city.

- All demos will be performed using free tools that you can access without a subscription.

WHAT OTHERS SAY ABOUT NEAL'S TRAINING

"Neal's presentations are fantastic, always extremely informative, detailed and well organized. He is always happy to share his knowledge and great tips with group members and this is very helpful"
- Peter B

"Neal's presentation was filled with invaluable information that is not readily available to the average investor. Many many hours of research must have gone into this presentation! Thank you guys for sharing it with me!!”
- Carlos Molina

"Super Meetup event. Neal is an expert in real estate and rentals. He is the best teacher I have met in the last 3 decades and he is willing to share his knowledge to all ttendees, including some potential competitors down the road. Thank you, Neal”
- Eugene Sussli

-------------------------------------------------
Saturday, November 17, 11:15 AM PST
Register here: www.multifamilyu.com/showandtell
--------------------------------------------------

Each workshop is limited to 20 participants

Please do not RSVP unless you are SURE that you are coming.

About the Presenter:

NEAL BAWA (Founder and CEO, MultifamilyU)

Neal owns and manages an extensive real estate single family and multifamily portfolio in 7 U.S. States. Neal often speaks at Multifamily events, IRA events & meetups across the country. Nearly 2,000 students attend his multifamily seminar series each year and hundreds attend his Multifamily boot camps. He is the co-founder of the largest Multifamily Investing Meetup in the U.S. (BAMF), with 3000 members. He leads the company and is driving the syndication and acquisition of multifamily properties. Neal's past experience includes 17 years of revenue (P&L) experience as the senior-most executive in a California education company with over 350 employees and $40MM in revenue.

Neal is a backyard tomato farmer and a protein diet health nut. He believes in positivity and Karma, is passionate about cricket and about the enormous potential of self-driving electric vehicles to solve the global climate crisis.

Savvy apartment Real Estate Investors know that the most common benchmark for measuring returns and gauging pricing for commercial real estate is the cap rate. The cap rate is the annual return that investors receive on their investment before the use of Leverage, i.e debt. if you look back in the numbers for the last five or six decades, there is no doubt that cap rates go up when interest rates go up. However, there are a large number of myths involved, when considering the connection between cap rates and interest rates. Firstly, people believe that if interest rates go up by 1 Point, let's say from 5% to 6%, then cap rates must go up by 1%. As far as I know, this has never happened. While it has been reasonable to assume, at least in the past, that rising interest rates would lead to an increased cap rate, it is never a one-to-one ratio. Back in the 80s, when interest rates were as high as 18 to 21%, cap rates were still single digits. This despite the fact that financing for multifamily properties was harder to get in the 80s then it is today. Cap rates did rise back in the 80s when interest rates rose, they just did not rise in a one-to-one ratio. Today, it's more reasonable to assume that if interest rates go up by 1%, cap rates might go up by 0.1% to 0.2%. That's a better rule of thumb. Having said that, let's look at what's really happened in the past 4 years. The Federal Reserve started to threaten that they would raise interest rates in the 2014 time frame. They finally did start raising rates and at this point have raised them about a half a dozen times. And have provided clear indications of at least four further increases in 2019 and 2020. And what has happened to cap rates in areas such as multifamily? There has been absolutely no evidence that cap rates have increased whatsoever during that time frame. There is very strong evidence that cap rates have continued to decline over the last two-and-a-half years, while the Federal Reserve raised interest rates. This has happened in the class A, the class B and The Class C markets. It has happened across the board in all of the top 50 metros in the United States. While there are isolated examples of certain metros such as New York seeing increases in cap rates, it is also very clear that those increases were tied to large amounts of incoming Supply, not tied to increases in interest rates. So, looking at the evidence, it is clear that cap rates are not obeying the rules of interest rates, or the rules of money, at least so far in this cycle. for the rest of this post, I'm going to speculate on why this has happened. I start off by saying that this is speculation. However it is backed by a number of monetary policy articles from both real estate professionals as well as Finance professionals. Here is why I think that the relationship between interest rates and cap rates has been broken, and may remain broken for at least a decade. To recover from the 2008 recession, the United States Federal Reserve launched an extensive program called quantitative easing. Under this program, the Federal Reserve increased liquidity in the market by over 4.3 trillion dollars. Other central banks in the world followed suit, and the European Central Bank, Japanese Central Bank and the Chinese Central Bank also printed trillions of dollars and injected liquidity into the financial Marketplace. This liquidity, which was introduced through the central banks buying bonds and mortgages, was supposed to be temporary. Unfortunately, it has been anything but temporary. At this point, ten Years After the 2008 crisis, only the United States Federal Reserve has withdrawn any of this liquidity from the market. Of our 4.3 trillion dollars, we have withdrawn a puny 300 billion dollars. At the current rate it would take us over 10 years to withdraw all of our liquidity. And keep in mind, this is only a fraction of the worldwide liquidity injection. The European Central Bank and the Japanese Central Bank have not even given any indication as to whether they will withdraw this liquidity at any point in the future. So why does this liquidity matter? and why is it part of a discussion about the relationship between cap rates and interest rates? Well, because these trillions of dollars are looking for yield. Money, once created as debt, races around the globe looking for yield, looking for profit. As central banks cut interest rates around the world, the inflation-adjusted yield for money turned negative. In fact, in countries such as Switzerland, if you buy a 10-year Government Bond, you do not get interest on it. Shockingly, you pay the government for the privilege of lending the money. While our Federal Reserve has raised rates somewhat, no one else in the world has bothered to do it. So we have this unprecedented situation of having over 13 trillion dollars worth of bonds worldwide that are at zero yield, or negative yield if you adjust for inflation. This money is desperately looking for yield. Pension funds worldwide that hold such bonds are at risk of bankruptcy. They are changing, morphing, even breaking their own rules to invest this money into risk assets such as real estate. This Is Why Real Estate assets around the world have gone up. Many people in the United States think that multifamily real estate is in a bubble. Have you looked at Singapore, Hong Kong, Canada or London real estate? Those pricing increases make our market look positively subdued. This despite the fact that of all of the economies just mentioned, the United States is easily the most functional, the most liquid and has the strongest foundation of growth. After all, only our Federal Reserve has been brave enough to raise interest rates, no one else has. That is because we have the strongest economy in the developed world today. this is why money from those zero yield bonds has been flowing into the United States, and flowing into commercial real estate. As these trillions of dollars flow in, they are warping, even destroying the relationship between cap rates and interest rates. This is why we have seen 6-7 interest rates hikes, with declining cap rates. This is because that money can still get double-digit yields in the United States, where it gets zero yield if invested in bonds. Why would money managers for large funds care that cap rates are declining while interest rates are increasing, if they can make 10% on their money? This doesn't mean that cap rates can continue to go down infinitely. In fact if you look at the latest reports, it appears that cap rates have plateaued for the moment. However, as the demand for apartments goes up and new construction gets hit Harder by the higher interest rates, it is likely that cap rates could resume their downward trend. until the world figures out how to get the trillion-dollar liquidity genie back in the bottle, the rules of money may remain perverted. What do you think? Does this explain why cap rates continue to decline, when they shouldn't be?