Our guest today is Neal Bawa, a commercial real estate investor, data scientist, and educator. In this episode, we dive deep into how to analyze data. We talk about how to understand the markets and asset classes, the future of real estate investing, and how data drives our decision-making. If you want to understand the current real estate environment and learn about multifamily and its role in the industry, then this episode is for you!
Learn more about Neal and his journey at reiclarity.com!
“The amount of time that we’d spend looking at the data is clearly at least 10x of a typical company of our size.”
Neal is a large multifamily investor with thousands of units in 10 states. He considers his company one of the most diverse multifamily companies in the United States because they have multifamily, student housing, built-to-rent, townhouse, self-storage, industrial, new construction, B and C class assets in their portfolio.
Built-to-rent is a newer term in the industry but it’s already the fastest-growing asset class in all of real estate. These are townhomes or single-family units that are like apartments.
According to Neal, his company is more like a data company that works in real estate, that is why their portfolio is very diverse.
“This is the greatest time in history to sell.”
Neal is a data scientist. He talks about what data is impacting real estate investing the most currently.
One major factor to consider is that we recently injected 5 trillion dollars into a 2 trillion dollar economy. This affects the single-family market the most but also the multifamily market. It created low inventory, record amounts of liquidity in the system, and record-low interest rates.
According to Neal, this is the greatest time in history to sell in real estate. It can also be a good time to buy, but you might need to change your strategy or preferred markets.
“It’s a classic and capital mistake to study cities. What you really should be doing is studying regions or corridors.”
Neal talks about his acquisition strategy. He recommends investing in tertiary markets and looking at corridors instead of cities.
He also recommends investing in fourplexes as they have the best tax benefits and to stay away from new construction.
At the end of the episode, Neal shares how climate change is affecting real estate and changing the market whether you believe in it or not. According to him, it’s not just the actual climate change that will affect real estate but the perception of it will have a strong impact as well.
Mentioned in the show:
- His LinkedIn
- The REI Clarity Framework
Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity.
Special thanks to Neal Bawa for taking the time to share so many great insights with us
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Show produced by Eni Horvath