EP295: Playing Offense With Your Money: The Real Strategy to Outsized Returns
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Let’s get real for a second—playing offense with your money isn’t about sitting back, waiting for the “perfect” market conditions.
It’s about actively seeking out opportunities that offer outsized returns, even when the headlines are screaming doom and gloom.
And guess what?
There’s always opportunity. 😵😵
But here’s the golden rule: always take profit off the table when you can.
Lately, investors have been feeling like they’re trapped in the dark side of multifamily investing—cue the Darth Vader music.
You’ve seen the headlines:
- Sky-high interest rates crushing deals.
- Massive loan defaults looming on the horizon.
- An oversupply crisis threatening returns.
It’s enough to make anyone want to hit pause, right? But hold up—before you go into hibernation mode, let’s explore whether there’s actually a bright side to all this.
Spoiler alert: There is.
And by the end of reading this, you might be seeing things a little differently.
So, grab your coffee ☕ (or wine 🍷, no judgment here), and let’s dig in.
The Monster Under the Bed: Interest Rates
Okay, let’s address the big scary monster that’s been keeping investors up at night: interest rates.
Yes, they’ve been unpredictable.
Yes, they’ve made financing tougher.
But let’s get one thing straight—it’s not the interest rate itself that’s causing distress.
It’s the rapid, unprecedented rise in rates that threw everyone for a loop.
We saw this firsthand with properties purchased in 2020 and 2021.
No one—and we mean no one—expected inflation to spike the way it did.
And honestly?
The last time we heard the term “quantitative easing” back in 2008, it didn’t result in runaway inflation.
Here’s what happened back then:
- The Fed pumped $1.2 trillion into the banking system.
- Inflation? Practically nonexistent.
Fast forward to the COVID era, and BOOM 💥—nearly $5.6 trillion was injected directly into the economy.
Now that had a very different effect.
It’s like comparing apples to oranges—one went into the system, and the other landed straight in people’s bank accounts.
So, Where Does That Leave Us Now?
Despite all the chaos, properties with fixed-rate loans are doing just fine.
👉 In fact, our latest 🏢 multifamily purchase came with a 3.49% fixed rate with 38 years of amortization left.
That’s the key difference—investors who accounted for higher rates are thriving, while those who weren’t prepared are scrambling.
Moral of the story?
It’s not the interest rate that’s the problem—it’s whether or not you accounted for it in your game plan.
And with rates starting to stabilize, we’re now in a place where we can finally see and plan for what’s ahead.
Oversupply? Not So Fast.
Another hot topic that’s making waves?
The dreaded oversupply crisis.
Here’s the truth: oversupply isn’t happening everywhere. It’s a regional issue, and if you know where to look, you’ll find incredible opportunities.
Let’s talk about the places that are booming:
- Texas: Dallas alone absorbed 36,724 units in 2024—leading the nation.
- Florida: 20%+ GDP growth, with a 9% increase in jobs.
- Rocky Mountain states: Idaho, Utah, Arizona, and Colorado are thriving thanks to remote work shifts.
Meanwhile, states like California and New York are struggling to keep up, losing residents and seeing slower growth.
Lesson learned: Location. Matters. More. Than. Ever.
Defaults: A Crisis or an Opportunity?
Let’s talk about the elephant 🐘 in the room—loan defaults.
Yes, there’s a massive wave of commercial real estate debt maturing soon.
We’re talking about $2.5 trillion coming due, and properties bought at peak prices might struggle to refinance.
But here’s the secret the media isn’t telling you: this is a buying opportunity of a lifetime.
Distressed properties with solid fundamentals are now selling at 30–50% discounts, meaning if you’ve got your financial ducks in a row, you can swoop in and grab high-value assets at a fraction of their worth.
And while some investors are paralyzed by fear, savvy players are lining up to seize these deals.
How to Stay on Offense When Everyone Else Is on Defense
So, what’s the game plan?
Here’s how we’re playing offense while the rest of the market hesitates ⏬
1️⃣ Choose Your Markets Wisely
Follow the job growth, population trends, and economic fundamentals. Areas with strong demand and limited new supply are golden.
2️⃣ Lock in Smart Financing
We’re not taking risky bets—we’re locking in conservative, fixed-rate loans, ensuring we have cash flow stability no matter what happens.
3️⃣ Take Advantage of Distressed Deals
When others panic, we buy. Period. Properties in high-demand areas with operational inefficiencies are prime for turnaround success.
4️⃣ Build a Cash Reserve
Having enough liquidity means you’re prepared for surprises—and let’s be honest, real estate is full of them.
Final Thoughts: It’s Game Time
Here’s the deal—whether you’re an investor already deep in the game or someone just dipping your toes, this market is full of opportunity.
But here’s what separates the winners from the sidelines: taking action. ⚡
When others are frozen with fear, that’s your cue to make bold, calculated moves.
Because wealth isn’t built by playing it safe—it’s built by playing it smart.
So, are you ready to go on offense with your money?
If you want to learn how to spot the best deals, navigate interest rates like a pro, and take advantage of the market shifts, click here to join our FREE community.
Let’s make smart moves together and turn today’s uncertainty into tomorrow’s opportunity.
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