This is part 1 of my conversation with Stefan Tsvetkov, Stefan is the founder of RealtyQuant, a company that brings data-driven and quantitative techniques to the real estate industry. He is on a mission to add industry value through education, investment, technology, and analytics. He has been featured on over 30 Podcast/Webinar events including Elevate, Best Ever Real Estate Show, The Apartment Guys etc. Organizer of Finance Meets Real Estate live webinar series, with ~3000 subscribers and over 70 live webinars.

In this episode, Stefan explains that there is a correlation between real estate valuations and economic cycles, and that when affordability decreases, it leads to a decrease in property values. He points out that it is harder to predict real estate valuations at the county level than it is at the state level. He advises listeners to use affordability deviations as a predictor potential market crashes, and to be prepared for any changes in the housing market by having an understanding both housing supply and demand.

[00:01 - 11:13] Real Estate is a Great Way To Make Money

• Stefan discusses how real estate investing is a great way to make money

• Real estate investing is a long-term investment

[11:17 - 14:59] Market Valuations Are Not Good Predictors of Appreciation

• Divergence in real estate prices across different areas is a predictor of downturns
• Real estate prices are not accurate predictors of future performance are important predictors
• Inflations is a possible outcome of asset bubbles
• • Stagnant price growth
  • Less overvalued prices
  • Super growth in income
• He explains the correlation between undervalued market and subsequent markets

[14:59 - 22:09] Closing Segment

• Stefan emphasizes the weakest markets are the best on the downside in real estate

• Stefan invites us to visit his website: https://www.realtyquant.com/

Tweetable Quotes:

“Valuations are not good predictors of appreciation, even in the down points in the market.” – Stefan Tsvetkov

“If wages are too much behind, that's going to be the issue for real estate and that's going to be the issue for other sectors.” – Stefan Tsvetkov

Connect with Stefan through his website, Facebook, and LinkedIn!

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.

Are you confused about where to start? Join our community and learn more about real estate investing. Head over to our Facebook Page, Youtube Channel, or website https://www.theacademypresents.com/jointhesummit36848306.

Connect with Lorren Capital, LLC. for syndicated multifamily investments, https://lorrencapital.com/.

To learn more about me, visit my LinkedIn profile, and connect with me.