Is ‘Survive Till 25’ Still Relevant, or Is It Time to Brace for 2029?

In this episode of Ready to Scale, Jeannette Friedrich sits down with Mac Shelton, Founding Partner of Sweetbay Capital and First Lieutenant in the North Carolina National Guard. Together, they dissect the current multifamily real estate landscape amidst shifting economic conditions, rising interest rates, and the looming impact of new tariffs.

Key Takeaways:

-Market Outlook: Insights into why the "Survive Till 25" mindset may need to extend further due to prolonged market challenges, including interest rates and economic cycles.

-Interest Rate Realities: Understanding the Fed's position on interest rates and why expecting a return to pre-2022 levels without a recession is unrealistic.

-Value-Add Strategies in 2024: How value-add multifamily strategies have evolved, with a focus on disciplined acquisitions and realistic exit expectations.

-Impact of Tariffs: Exploration of how new tariffs on China, Canada, and Mexico could influence real estate costs, inflation, and Federal Reserve policy.

-Asset Valuation: Why smart buyers focus on pro forma NOI rather than current NOI, and how operational efficiencies may not always translate into higher exit values.

-Multifamily Fundamentals: Despite market volatility, strong demand and positive absorption trends continue to support long-term confidence in multifamily investments.

-Personal Insights: Mac shares lessons from his career shift from private equity to multifamily investing and offers practical advice for navigating today’s market.

Tune in to gain a grounded perspective on market dynamics, strategic adjustments, and the opportunities that arise even in challenging times.

Are you REady2Scale Your Multifamily Investments?

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Timestamps

00:00 Introduction and Episode Overview

00:21 Meet Mac Shelton: Background and Career Journey

04:14 Market Challenges and Economic Outlook

07:26 Value Add Strategies in Current Market Conditions

13:18 Impact of Tariffs on Real Estate

18:15 Lightning Round and Closing Thoughts

Credits

Producer: Blue Lake Capital

Strategist: Syed Mahmood

Editor: Emma Walker

Opening music: Pomplamoose

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