Risk vs. Reward in Today’s Real Estate Market with Raj Gupta
With uncertainty in the market, investors are looking for investment opportunities that mitigate risk. Multifamily has performed well during the pandemic, proving to be resilient during rough times. However, many apartment investors are wondering how to adjust their strategies to protect themselves in case of a further downturn. To better understand how investors are adjusting strategies, we spoke with Raj Gupta who is a multifamily syndicator with holdings in Dallas-Fort Worth and Houston.
Raj Gupta is the co-founder of Impact Prosperity. He began investing in real estate in 2008 and owns over 4,000 units in his portfolio. Raj has served in the Navy, worked as an attorney, and spent time as an investment advisor. Raj believes in balancing risk and reward, focusing on getting the highest reward with the least amount of risk. Because of this, Raj says now is a time to focus on recession-resilient investments. He shares his thoughts on the current economic state, risk vs. reward when evaluating investment opportunities, the Dallas-Fort Worth market, and evaluating multifamily deals in today’s market.
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Key Multifamily + Marketing Insights
The economy and how people are reevaluating their finances due to COVID19
What is driving risk today
Evaluating the multifamily market
How to change your multifamily business strategy for success in today’s challenging market
Risk vs. reward
Heightened risk environment = compensation on a higher return
Raising extra capital for cash reserves is a better idea than ever to mitigate the heightened risk.
Understanding the Dallas-Ft. Worth Texas real estate market today
The submarket evaluation of DFW
Evaluating Class A properties in today’s market climate
Understanding overall economic occupancy impact during a recession based on the property classification
The changing behaviors of renters due to COVID19 that are creating multifamily investing opportunities
The incredible opportunities due to the low-interest rates that are available today
Navigating today’s gap between buyers and sellers
The trials and tribulations of asset management during a recession
Assessing multifamily investment opportunities in a fluctuating market (Hint: Underwriting is key!)
Evaluating the macroeconomic system and the resulting market dynamics
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Learning syndication fundamentals through his first 16-unit deal in Detroit, which was a disaster. It was an invaluable experience, and he wouldn’t be as successful as he is today without it.
Rely on data when underwriting instead of making emotional decisions.
Most Recommended Book:
Recession-Proof Real Estate Investing (J. Scott)
Make a list of what to accomplish for the day
Wish I Knew When I Was Starting Out:
Get in earlier, and go bigger, quicker.
How things are going to play out in the economy
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