JF3305: Fed Predicts More Rate Hikes to Come in 2023 and 2024: What This Means for Investors | Beyond Multifamily ft. Ash Patel
Sep 22, 2023
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Ash Patel, non-residential commercial real estate investor and Best Ever Show host, discusses the implications of the Fed's rate hike announcement on real estate investors. He also explores the impact of rising oil prices and decreased US refining capacity. Furthermore, he talks about the challenges in investing, such as rising gas prices, interest rates, and low savings rates. Finally, he offers advice for real estate investors on navigating uncertain economic times.
Lending relationships become crucial for real estate investors due to likely rate hikes in 2023 and beyond.
Accumulating liquidity, being an active buyer for discounted assets, and stress-testing investments are recommended strategies to navigate potential economic downturn.
Deep dives
Risks of Personal Data Exposure Online
Personal data is being compiled by data brokers and sold to the highest bidders online, making private details accessible to anyone on the web. This poses a risk of identity theft, phishing attempts, harassment, and spam calls.
Impact of Rising Interest Rates on Real Estate
With the Federal Reserve indicating likely rate hikes in 2023 and beyond, lending relationships become crucial for real estate investors. Banks are tightening their lending practices, making lending brokers more valuable in securing loans. Gas prices and their potential impact on inflation are also a concern, as rising prices can increase costs and affect consumer behavior.
Preparing for Economic Uncertainty
The podcast host recommends stress-testing investments and deals in anticipation of prolonged higher interest rates. Accumulating liquidity, being an active buyer for discounted assets, and prepping investors for upcoming opportunities are highlighted as strategies to navigate the potential economic downturn.
The Beyond Multifamily series is hosted by non-residential commercial real estate investor and Best Ever Show host, Ash Patel. Ash’s goal for this series is to introduce you to the world of non-residential commercial real estate investing and teach you how to look at and underwrite different commercial asset classes.
In this episode of Beyond Multifamily, Ash Patel dissects the Fed’s recent announcement that they anticipate another rate hike in 2023 and potentially multiple additional hikes in 2024. He shares his thoughts on how this will impact lending, real estate deals, and consumer habits, and why this is not an excuse for investors to stay on the sidelines.