Episodes
Friday Mar 31, 2023
The Fed Broke The Banks - Is Real Estate Safe?
Friday Mar 31, 2023
Friday Mar 31, 2023
In this episode, Toby Mathis, Esq. of Anderson Business Advisors welcomes Neal Bawa back to the show for his third appearance. Neal is the founder and CEO of Grocapitus, a commercial real estate investment company, and CEO of MultifamilyU, an apartment investing education company.
Neal walks us through the realities we’re facing in the economy right now, discussing the Silicon Valley Bank failure, the Fed and interest rates, the bond and mortgage markets, and when and where to look for real estate bargains in the latter half of 2023.
Highlights/Topics:
- The Fed poisoned the banking system by flooding it with cheap money
- The bond problems are not the same as 2008
- Preventing bank runs that will domino other banks failing
- Reduction of bank liquidity reduces business activity
- Price stability and the banking system
- FDIC and the Fed dumping cash into banks
- Twitter creates bank runs in hours, not days
- Western states are down from peak in mid-2022
- One full percent cut in interest rates will start real estate price reductions
- Real estate sectors suffering post covid – offices, hotels
- Q3 is a good time to buy, with extensions
- The ‘spread’ and when mortgages might drop
- Big banks will get the deposits when smaller banks fail
- The next 6 months are a good time for bargains
Resources:
https://www.grocapitus.com/
https://multifamilyu.com/
Listen to Neal’s July 2020 appearance
https://andersonadvisors.com/podcast/real-estate-investing-with-analytics/
Listen to Neal’s Oct 2022 “2023 Housing Market Forecast” appearance
https://podcasts.apple.com/us/podcast/2023-housing-market-forecast-why-real-estate-will-remain/id1446273914?i=1000579549992
https://andersonadvisors.com/
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ