2023 Q3 Market Report + Office Hours

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The 2023 third quarter market update reveals a drastic shift in commercial real estate due to unprecedented interest rate hikes since summer 2022, described as a Black Swan event. The market has dropped roughly 20%, buyer activity has decreased significantly, and loan-to-value ratios have fallen from 70% to 50-55%, making purchases and refinancing more challenging. Cap rates have also risen, affecting property values. Additionally, there's been a notable increase in expenses like insurance and taxes post-pandemic. The forecast includes potential federal interventions, a focus on newer housing demands, and a pivot towards development projects to counteract the volatility. Overall, there's an emphasis on long-term investment stability despite short-term market turbulence.

[00:33] Interest Rate Hikes & Real Estate Effects
[00:55] Historic Interest Rates Surge
[01:20] Commercial Real Estate Market Drop
[01:37] Buyer Activity Decline
[03:05] Future Interest Rate Predictions
[04:12] Real Estate Valuation Equation
[05:20] Cap Rate Effect on Property Value
[08:09] Loan Refinance Challenges
[09:27] Fixed Rate Debt Strategies
[11:11] Rent Decline & Apartment Construction
[12:24] Supply and Demand in Housing Market
[13:30] Federal Interest Rate Strategy
[14:40] Real Estate Debt Concerns
[16:32] Investment Decision Making
[18:21] Institutional Impact & Diversification
[20:10] Economic Strengths & Weaknesses
[22:16] Home Ownership Trends & Government Spending
[23:09] Real Estate Market Threats & Loan Maturities
[26:21] Understanding Market Threats: Asset Prices & Buyer Equilibrium
[26:40] Federal Rates Impact: Timing the Market's Tides
[27:16] Global Tensions & Real Estate: Managing Investment Threats
[28:49] The Long Game: Investing in 2023 for Future Wealth
[29:12] 2023 Investment Strategies: Navigating Rate Hikes and Market Shifts
[30:10] Strategic Acquisitions: Using Pessimism to Your Advantage
[31:15] Passive Activity Losses: Investing in ATM Equipment for Tax Benefits
[32:28] Capital Placement: The Key to Building Wealth

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Lane Kawaoka is a multi-family syndicator who owns 10,000+ rental units and is the leader of “Hui Deal Pipeline Club” which has acquired over $2.1 Billion AUM of real estate by syndicating over $186 Million Dollars of private equity since 2016.

Lane uses his Engineering degree to reverse engineer the wealth building strategies that the rich use in the Top-50 Investing Podcast, The Wealth Elevator.


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