Cracking the Code: Stress-Testing Deals and Creative Structures in Today's Real Estate Market

In this episode, our hosts, Ash Patel, Joe Cornwell, and Slocomb Reed engage in a lively roundtable discussion about the challenges and opportunities presented by the current real estate market, emphasizing the importance of stress-testing deals and being prepared for various scenarios. The conversation touches on topics such as underwriting, creative deal structures, and the shifting dynamics in the Midwest market.

Key Takeaways:

• Stress-Test Your Deals: In the current market, it's crucial to stress-test your real estate deals. Factors like rising interest rates, potential vacancies, and unforeseen challenges should be considered in your financial projections.

• Creative Deal Structures: To succeed in the competitive market, consider creative deal structures. Whether it's negotiating seller financing, concessions, or exploring unique opportunities, having flexibility in your approach can make a significant difference.

• Long-Term Focus: Expect longer hold times for your investments. With uncertainty in the market, planning for a five-plus year window rather than short-term flipping is a prudent strategy to manage risk effectively.

The Best Real Estate Investing Advice Ever Show is the world’s longest running daily commercial real estate podcast. Our hosts interview commercial real estate experts every day to get you the best advice ever with none of the fluffy stuff. Click here to listen and subscribe on Apple or Spotify.

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