In this episode, Jason interviews Mike Zlotnik from the Tempo Family of Funds https://tempofunding.com/ to gain insights into the current state of the real estate market. Mike discusses the impact of high-interest rates on commercial and residential properties, particularly in the retail and office space sectors. He mentions that transaction volumes have significantly declined, with some properties being sold at a distress due to the need for immediate sales. However, multi-family apartments and self-storage properties continue to perform relatively well. Mike highlights the challenges faced by value-add projects that were acquired with bridge loans and are now reaching maturity. These assets may need to be sold at a discount if refinancing is not feasible. Additionally, he mentions the difficulty in raising cash for refinancing within syndications, as investors may not be willing to contribute more funds. Despite the challenges, Mike believes that the market may improve if interest rates stabilize or decrease. 

They also discuss various economic topics, including unemployment, inflation, central planning, entitlements, and the real estate market. They touch upon the impact of technology and artificial intelligence on employment, the shortage of workers in the housing construction sector, and the shift from fix-and-flip properties to new construction properties in the real estate market. They also mention the decline in hard money loan volume for fix-and-flip projects and the need for more distressed properties in order to stimulate the market. While they have different perspectives on how these issues can be resolved, they agree that the current economic situation presents challenges and uncertainties.

#realestate #marketupdate #commercialproperty #residentialproperty #transactionvolume #interestrates

Key Takeaways:

Jason's editorial

1:27 Greetings from the beautiful Danube river

2:12 Shortage of houses affecting people and areas harder than other

3:53 We have 700 videos on our Main YouTube channel https://www.youtube.com/@JasonHartmanRealEstate/videos

4:22 Itinerary for the next few weeks

Mike Zlotnik interview

6:00 Welcome Mike Zlotnik; an overview of different asset classes

9:10 Transactional volume for office space is down by 75%

10:12 The residential market trend is going down

12:30 Extending or renegotiating deals

15:10 The banks and the creature form Jekyll Island

16:45 Prediction on what the FED is going to do

19:32 Commercial Mortgage Backed Securities, residential market and the overall economy

22:22 Entitlements and a giant shortage of workers especially in the housing sector

24:03 Hard money lending, the build-to-rent model and the shortage of inventory

28:57 Awesome mortgage rates equals non-distressed home sellers

31:42 Home builders are starting at such high prices

33:07 Being opportunistic in this current environment and buying build-to-rent properties

 

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