65: Deleveraging: The Dominoes are About to Fall w/Ben Miller
On The Market
Introduction
On The Market, a bigger pockets podcast presented by Fundrise. Ben Miller talks about what's coming down our pipeline and as an investor to prepare of where the major opportunities are.
Deleveraging is a term you probably haven’t heard. And don’t be surprised; most news networks will never cover what deleveraging is or what it means for the real estate market. But, this capital constriction could implode the housing market, causing numerous investors and funds to go under, leaving the rest to pick up the scraps. This massive change is about to happen, but don’t get too scared; if you bought right, you could be one of the lucky few with a buffet of cash-flowing deals to choose from.
So, who’s better to ask about this impending crisis than Ben Miller, co-founder and CEO of Fundrise? He’s been on both ends of lending, not only buying significant assets with credit but also supplying the funding to others who need it. Ben is predicting a massive change in the real estate market that will shock investors to the core and could leave the economy worse for wear. This deleveraging crisis Ben talks about is not a simple concept, but once you understand how and why it’s happening, you unlock a piece of knowledge that 99% of other investors miss.
Ben speaks on how bridge loans and floating financing have put thousands of investors (and lenders) in a bind, why banks will be strapped for cash in 2023, and the scenarios that could play out over the next year if everything goes wrong. Make no mistake, this is NOT a doomsday forecast or some hypothetical hype meant to worry investors. Deleveraging is a real scenario that could have cascading effects for decades. If you’re investing, this is a CRUCIAL episode to tune into.
In This Episode We Cover
Deleveraging explained and why so many investors are on the line for millions of dollars
Which real estate industries will be hit hardest when the deleveraging crisis manifests
Why even the banks are overleveraged and the domino effect that could cause financial chaos
The scenarios that could play out as banks start to constrict the money supply and investors get desperate
The massive opportunity for investors as overleveraged loans come due and assets start to sell for a fraction of the cost
Who will win and make it out alive after the mass deleveraging takes place
And So Much More!
Links from the Show
Find an Investor-Friendly Real Estate Agent
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Hear Our Previous Interview with Ben on “Build-to-Rent” Investing
How to Prepare for a Recession (and Profit!) in 2022
Connect with Ben:
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-65
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