Dec 3, 2020
The stock market crash in March sent shockwaves and fear through institutional investors and triggered a flight to safety and a flurry of real estate investing. Seeing so much activity in the market can trick many people into believing that everything is back to normal.
But the smartest investors know the economy isn’t quite out of the woods yet.
As investors, we have two options right now. We can either follow the crowd or we can wait. The smart play is to wait for the noise to clear and to remain fearful while others are being greedy.
We have to see the market without rose-tinted glasses, and define opportunities based on the reality that the market is going to get worse before it truly gets better.
Why should we do the opposite of what institutional investors are doing? What does it take to win right now? How do we find where the opportunities in real estate actually are?
In this episode, I’m joined by investment advisor, real estate capital markets expert, and CEO of CapStack Partners, David Blatt. We talk about how investors should be thinking of the market we’re currently in, and how to navigate it.
Three Things You’ll Learn In This Episode
How to navigate opportunities in the covid-19
When the stock market took a hit in March, most institutional investors took their money out and looked for a safer place. That created a wave of real estate investing, which is very good for us. Right now, we have to sit back and wait for that first wave of money to settle. The real opportunities will present themselves later and that’s when we’ll be able to take advantage of them because the big money is already spent.
Why the market hasn’t actually recovered (even though it
looks like it)
Anyone who thinks the market has recovered from the crash in March isn’t reading the signs of the market. The stimulus and other financial solutions are just temporary fixes, not real solutions. The aspects that have supported the market in the near-term are not long-lasting. At the core, the actual injury our economy sustained in March hasn’t been dealt with, and it will soon show.
How to determine our investment strategy in this
There are going to be different opportunities we can slot into right now. Where we choose to invest our money is going to be determined by what our goals are and our time horizon. We have to invest based on whether we’re looking for near-term stable cash flow or significant value appreciation.
David Blatt is an advisor, Real Estate Capital Markets Expert, International Public Speaker and CEO of CapStack Partners, a leading real estate debt solutions advisory firm in New York. He is focused on helping real estate clients find debt solutions, including project financing, loan sales & syndications, and loan workouts and restructuring.
He has hosted the real estate investment podcast, "Make the Deal: Real Estate Investing with David Blatt" and has been a regular contributor to New York’s top commercial real estate trade publication, Commercial Observer. He is a frequent public speaker on entrepreneurship, innovation and capital & investment trends in real estate and has spoken at top real estate conferences such as: IMN, Real Estate Finance & Investment Institutional Investor Forum and GlobeSt.com’s RealShare Annual Conference, among others.
Blatt has been frequently sourced by national business and real estate trade outlets, including the Financial Times, LA Times, GlobeSt, Commercial Observer and The Real Deal for his expert opinions on how to make good investment decisions, how to effectively negotiate and structure deals and where to invest in the real estate industry. David has also been a guest on such Youtube shows as Grant Cardone, Jake and Gino, CEO Money, as well as podcasts such as Embracing Uncertainty. For more info and to connect with David, visit https://www.linkedin.com/in/davidblatt-capstackceo/.