The Best Ever CRE Show JF 3893: Market Trends, Fed Policy, and Cash Flow Plays ft. Neal Bawa
May 2, 2025
In this discussion, Neal Bawa, CEO and the 'mad scientist of multifamily,' shares insights from his live presentation at a major conference. He debates the Fed's economic strategies, noting that wage growth is outpacing rent growth. Neal expresses a bullish outlook on rent but remains cautious about cap rates and interest rates. He recommends targeting investment markets like Indianapolis, citing their strong rent growth and favorable tax conditions, while also emphasizing data-driven decision-making for real estate success.
AI Snips
Chapters
Transcript
Episode notes
Neal's Debate Strategy Anecdote
- Neal Bawa views debates as competitions to win with energy and strategy, not balanced discussions.
- He and his partner use prepared zingers and misdirection to handle weak points and distract opponents.
Wage Growth Outpaces Rent Growth
- Wage growth currently outpaces rent growth, an unusual scenario in modern history.
- This signals a strong economy and supports the Fed's soft landing claim with room to cut rates.
Fed's Dual Weapon Strategy
- The Fed uses both interest rate changes and buying/selling bonds to manage liquidity.
- Currently, it's tightening by selling $40 billion a month, which drastically affects the market.