Real Estate FAQ: Investing in a Challenging Market

THE FINANCIAL COMMUTE

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Chief Investment Officer Meghan Pinchuk to discuss the current real estate environment and investment opportunities.

Here are some key takeaways from their conversation:

- There is a noticeable drop in real estate transaction volume due to high interest rates and sellers holding out for better prices.

- Many real estate loans are coming due soon, creating potential opportunities for buyers as sellers may be forced to refinance at higher rates.

- Potential interest rate cuts are anticipated but are not guaranteed. Fed Chair Jerome Powell is speaking this Friday, where he may release more information on rate cuts.

- Inventory for single-family homes in California is low, which could drive prices higher if interest rates drop and more buyers enter the market.

- Meghan and Chris agree investing in real estate independently allows for greater control and potentially higher returns but requires time and capacity to handle tenant issues. For those looking for an alternative option, investing through a fund can offer access to better expertise and opportunities but may involve fees and less control.

- It is important to properly evaluate real estate investments by calculating potential income, expenses, net operating income, and comparing it to other investment opportunities.

- People can have a lot of emotional ties to real estate. It’s important to understand what certain properties mean to you and how selling, renting, or other actions could potentially affect family dynamics, emotions, etc.