Navigating the Real Estate Market with Chad Sutton: Insights and Strategies for Investors 🏠💼

"I think the days of of hitting 15 to 20 are gone for now they're not gone forever but you know the prices we're buying at now unless we see things get completely white hot again in the next five years I don't think you can Bank on that."

"I don't think I think what you're going to see is people are going to sell lower than they bought it for if they have if they can't get the money to to refinance the loan out or they're going to have to do bring in Mezzanine Financing or pref or something like that."

"if it's my opinion that three years from now we're going to see a very large gap in deliveries which is so I think you know what is it it's late 2023 2025 2026 I think we are going to experience a large gap in in and Supply."

"spring always follows winter folks we're in Winter right now where theone wants to admit it or not but spring always follows winter and I think 2025 2026 there's going to be a really nice spring coming."

"I think 2024 there's going to be more than there is this year so I think you're going to see some people come to terms and say well I guess I better just go ahead and sell this because I don't want a capital call my investors or you know the numbers have changed on this dramatically because of taxes and insurance I don't want to be there anymore or or whatever so you're going to see some some lower or higher cap rate sales lower price sales."

"I don't really think you're going to see a situation where um it's mass chaos Mass foreclosures I think it's pretty clear that despite what we want to say about the fed and the banking system they they've taken Great Links to make sure that doesn't happen and so we we'll see but I just I just can't see them letting that happen in an election."

"I think there's probably the most opportunity to gain from things that sell over the next two years I think you're gonna you're going to get a pretty good discount and then that door is going to shut and it's going to be closed forever you so for the foreseeable future."

"whatever you buy today you're probably not selling in in 18 months you're probably I think those days are gone you're probably we got some quick wins which is great but I think you're holding it for you know four five six seven years maybe longer"

"I'd say probably about 10% of of apartment owners are really in trouble and it's because they've got bad debt products they're probably going to mature on them and they they're going to have to cash in refi somehow that's how you fix it it's not like you're not going to see massive foreclosures I don't think I think what you're going to see is people are going to sell lower than they bought it for if they have if they can't get the money to to refinance the loan out or they're goingon to have to do bring in Mezzanine Financing or pref or something like that"

"most of what is bought today that's a quality asset is probably going to give about a 10 10 maybe 12% irr you're not or just just say 10 to 12% return okay you're not going to see and that's not cash flow that's total return like annualized return so if you held it for five years expect to get you know when all said and done and all the chips are down 12% per year I think the days of of hitting 15 to 20 are gone for now"

"now is the time to be acquiring assets that are in trouble and what I'll tell you about assets that are in trouble is I don't care what your operator puts on paper it's not going to cash flow for the first year two or three it's just not... if you can get into a couple of those where you're getting real good basis right now I think you you can't lose as long as you have a good operator at the helm"

"we're short about 4 million homes in the US... we're short about one million rental units and there's a lot of deliveries that are happening right now so I think multif family supply and demand is going to kind of be in Balance but in terms of that Supply but the fact that we still have a home shortage is still pushing more Demand on renters ship"

"if it's my opinion that three years from now we're going to see a very large gap in deliveries which is so I think you know what is it it's late 2023 2025 2026 I think we are going to experience a large gap in in and Supply... you couple that with a shortage of of uh apartment units and it's a great time to be in the space because if you're if you're if you're learning your if you have your training wheels on right now and you're kind of learning this business I think you're going to be positioned to capitalize on a pretty good season"

"spring always follows winter folks we're in Winter right now where theone wants to admit it or not but spring always follows winter and I think 2025 2026 there's going to be a really nice spring coming"

"I think the that the single family we're not going to see a big amount of single family Fallout like we thought we would... most people have locked in sub four if not sub three some of the twos interest rates for 30 years right I mean basically you're not giving that up if you're a homeowner unless you have a life event"

"recession will hurt retail obviously because people won't be spending as much I don't see as much trouble in in industrial or anything else... office is still in a lot of trouble... the nicer office will prevail the older office will get converted or demolished you know and there'll be a new equilibrium in the next five years"

"I think 2024 there's going to be more than there is this year so I think you're going to see some people come to terms and say well I guess I better just go ahead and sell this because I don't want a capital call my investors or you know the numbers have changed on this dramatically because of taxes and insurance I don't want to be there anymore or or whatever so you're going to see some some lower or higher cap rate sales lower price sales"

"I think there's probably the most opportunity to gain from things that sell over the next two years I think you're gonna you're going to get a pretty good discount and then that door is going to shut and it's going to be closed forever you so for the foreseeable future"

"I'm really excited about Indiana the state of Indiana I'm in Evansville I think it's a great Market um it is one of the most landlord friendly States and like tax friendly States I've ever operated in and I think now is a good time to get some good cap rate deals there so I'm personally I'm I'm really an Indiana fan right now"