On today’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Justin Mitchell, Founder of Realworld Asset Group, to discuss investment opportunities in real estate. 

Firstly, Justin and Chris review SB 9, an act that was passed in efforts to improve housing supply issues and affordability in California. This act allows homeowners to create up to four homes on an existing parcel. Therefore, real estate investors can turn a lot that is large enough into multiple rental units. Justin recommends investors who are considering this option to look into properties with detached garages since they allow more flexibility when building and adding units. He also urges investors to do their research on zoning rules, which can be specific to different municipalities.

Furthermore, Justin says the increase in interest rates will affect multi-family home construction projects as developers try to obtain loans. Regional banks are generally more open to creative financing than big banks, so if more clients continue to leave regional banks, there will be less access to borrowing for real estate developers. Therefore, Justin and Chris agree this will increase opportunities in private real estate lending. 

Disclosure:

Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.