On this episode of the Real Estate Runway Podcast, join host Chad Sutton,Tammy Sutton, Erin Hudson,and Kim Wedland from Quattro Capital as they delve into the challenges of closing real estate deals in today's market. They share their experience navigating the Covid-related debt seizure of 2020 and provide valuable insights on how to succeed in a rapidly changing real estate environment. From the importance of strong relationships with partners and brokers to negotiating price and being prepared to pivot, this episode offers practical advice for closing transactions in uncertain times. Listen to learn how Quattro Capital successfully closed two major deals in 2022 despite inflation, interest rate fluctuations, and the Fed's funds rate. Tune in for a must-listen conversation on the crucial role of communication and relationships in real estate investing and stay ahead of the curve."
Learn more about ALTERNATIVE BUSINESS and INVESTMENT STRATEGIES through QUATTRO CAPITAL!
[00:00 - 11:28] Navigating Today's Changing Debt Market
The debt market has cycles, or "debt drama", which can impact the closing of deals
Understanding the cycles and patterns in the debt market is key for success in investing or operating in real estate
The debt market can seize up suddenly, as seen in 2020, and it is important to be prepared for these changes
Knowledge of past market changes, such as in 2020, can help investors and operators navigate current market challenges
[11:29 - 22:07]Lessons Learned from Acquiring Deals in a Shifting Market
Nothing is fixed in a deal until it's purchased, and the market conditions can change quickly
Renegotiating price may become necessary in certain circumstances, such as an increase in cost of capital
Investing for the long-term horizon is crucial (5-10 years) rather than short-term profits
It's important to choose the right team and partners, as lenders are becoming increasingly critical in the current market condition
[22:08 - 25:12] Closing Segment
Invest in real estate, not debt
Focus on the upside potential of the property
Remember the fundamentals of the market, supply and demand, and rental real estate
Keep your eyes on the horizon and invest for wealth growth in the future, not for transactional purposes
“We're investing for the horizon, the five to 10 year horizon.We're not investing for something that's going to yield a ultimate profit and sale in a year.“ -Chad Sutton
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Real Estate Runway Podcast is all about alternative business and investment strategies to help you amplify life, and maximize wealth! Click here to find out more about the host, Chad Sutton.