State of the Market with the "Mad Scientist" Neal Bawa
10/14/20 • 50 min
Unless you have been living under a rock, you already know that COVID has disrupted every sector and every facet of our economy. As real estate investors and entrepreneurs, we have not been exempted from the impacts of COVID by any means and yet, there still remains a high degree of uncertainty as to what will happen as we begin to move into the post-COVID world, presumably.
Our guest on today’s episode is the one and only “Mad Scientist” Neal Bawa, Founder and CEO of Grocapitus and Multifamily University. Neal is a data guru with a keen insight to market trends and data that prove to be compelling when analyzing our current economic status and forecast. Using these analytics, Neal applies his understanding of data trends to evolve his business while educating others to do the same.
Tune in as Neal shares his wealth of knowledge and experience and dissects the different impacts observed throughout multiple verticals in the commercial real estate space. He shares his candid thoughts on a few surprising trends he’s noticed during the pandemic, showing this recession is not a normal recession, and what we can expect coming out of this recession.
In this episode, we cover:
Why were you coined the “Mad Scientist of Multifamily?”
What have been some of the surprising trends you’ve noticed in commercial real estate during the pandemic?
Why are we going to see a drop in NOI (Net Operating Income) and how will that impact our valuations?
Should I buy real estate right now or should I wait?
How is this year’s forbearance for tenants and landlords going to impact the rest of Q3 and Q4 of 2020?
As entrepreneurs and investors, understanding market trends and data are fundamental components of being a successful business owner. Although there remain many unanswered questions related to the impact of this virus, this episode will give you the necessary insights to approach the next challenging months ahead.
Neal addresses each of these pressing questions and so much more in this information-packed episode!
Final Four Questions for Neal:
1. What do you do for your continued education to further your investing?
Neal: "Every once in a while, I like to disconnect and go do something completely different that I have no knowledge of. My university for that in YouTube. Right now, I’m building stuff in my house from scratch that I haven’t done before and it’s forcing me to really think about that. The math is so complex that it’s forcing me to come up with new learning. Doing things that are completely counterintuitive is a million times more beneficial than repeating the same stuff we do."
2. What have been some of the lasting lessons along your real estate investment journey?
Neal: "As a real estate syndicator, the biggest lesson I’ve learn is don’t get into markets based on what’s going to happen to them in the future because we tend to sell ourselves and our investors on this huge vision of the future and sometimes that vision just doesn’t take place. Go into markets that already have a lot of wind on their back, not into markets that don’t. Don’t sell yourself on a project for the sake of acquisition fees because then you’re an unpaid wage slave for five years."
3. What advice would you give to the listeners to help them grow their businesses?
Neal: "One of the best places on the Internet to learn about these types of asset classes and what they’re doing is Multifamily University. We host about 40 webinars a year and more than 75,000 people sign up for them. This kind of structure is a great way to learn."
4. How can the listeners learn more about and connect with you?
Neal:
Google: Neal Bawa
Websites:
www.grocapitus.com
www.multifamilyu.com
MultifamilyU YouTube Channel
Unless you have been living under a rock, you already know that COVID has disrupted every sector and every facet of our economy. As real estate investors and entrepreneurs, we have not been exempted from the impacts of COVID by any means and yet, there still remains a high degree of uncertainty as to what will happen as we begin to move into the post-COVID world, presumably.
Our guest on today’s episode is the one and only “Mad Scientist” Neal Bawa, Founder and CEO of Grocapitus and Multifamily University. Neal is a data guru with a keen insight to market trends and data that prove to be compelling when analyzing our current economic status and forecast. Using these analytics, Neal applies his understanding of data trends to evolve his business while educating others to do the same.
Tune in as Neal shares his wealth of knowledge and experience and dissects the different impacts observed throughout multiple verticals in the commercial real estate space. He shares his candid thoughts on a few surprising trends he’s noticed during the pandemic, showing this recession is not a normal recession, and what we can expect coming out of this recession.
In this episode, we cover:
Why were you coined the “Mad Scientist of Multifamily?”
What have been some of the surprising trends you’ve noticed in commercial real estate during the pandemic?
Why are we going to see a drop in NOI (Net Operating Income) and how will that impact our valuations?
Should I buy real estate right now or should I wait?
How is this year’s forbearance for tenants and landlords going to impact the rest of Q3 and Q4 of 2020?
As entrepreneurs and investors, understanding market trends and data are fundamental components of being a successful business owner. Although there remain many unanswered questions related to the impact of this virus, this episode will give you the necessary insights to approach the next challenging months ahead.
Neal addresses each of these pressing questions and so much more in this information-packed episode!
Final Four Questions for Neal:
1. What do you do for your continued education to further your investing?
Neal: "Every once in a while, I like to disconnect and go do something completely different that I have no knowledge of. My university for that in YouTube. Right now, I’m building stuff in my house from scratch that I haven’t done before and it’s forcing me to really think about that. The math is so complex that it’s forcing me to come up with new learning. Doing things that are completely counterintuitive is a million times more beneficial than repeating the same stuff we do."
2. What have been some of the lasting lessons along your real estate investment journey?
Neal: "As a real estate syndicator, the biggest lesson I’ve learn is don’t get into markets based on what’s going to happen to them in the future because we tend to sell ourselves and our investors on this huge vision of the future and sometimes that vision just doesn’t take place. Go into markets that already have a lot of wind on their back, not into markets that don’t. Don’t sell yourself on a project for the sake of acquisition fees because then you’re an unpaid wage slave for five years."
3. What advice would you give to the listeners to help them grow their businesses?
Neal: "One of the best places on the Internet to learn about these types of asset classes and what they’re doing is Multifamily University. We host about 40 webinars a year and more than 75,000 people sign up for them. This kind of structure is a great way to learn."
4. How can the listeners learn more about and connect with you?
Neal:
Google: Neal Bawa
Websites:
www.grocapitus.com
www.multifamilyu.com
MultifamilyU YouTube Channel
Previous Episode
Investing For Legacy Wealth with Bruce Wuollet
What is legacy wealth? What does it mean to invest for legacy wealth? Although the answer to those questions may be subjective, for many, legacy wealth simply means creating wealth that leaves a positive, long lasting impact for our families and communities.
Our special guest on today’s episode is Bruce Wuollet, Founder of Bakerson. Bruce has built a business empire that is accustomed to conducting thousands of transactions each year. Now with a focus on investing in multifamily assets, Bruce’s thesis is centered around creating opportunities for his investors that produce long term cash flow and wealth generation. This couldn’t be possible, however, without his emphasis of building strong relationships. Bruce firmly believes that forging strong relationships is invaluable. Bruce attributes much of his business knowledge and success to forging those strong relationships with those he interacts with, both in business and in life.
As a baker’s son, Bruce developed his appreciation for relationships and customer service by working at his father’s bakery business. Despite the enjoyment of working at his father’s bakery business, he did not feel the passionate for it. After attempting other business opportunities, he was introduced to the book “Rich Dad, Poor Dad by Robert Kiyosaki and Sharon Lechter”. This then marks the start of Bruce’s journey as he paved his path to success.
In this episode, we cover:
How did Bruce leverage the value of relationships throughout his investing journey?
How did Bruce’s portfolio evolve and what is his current focus today?
What is a perpetual investment and how to become a perpetual investor?
What is Bruce’s “Inverted Triangle” and how does it correlate to relationships?
What does it mean to invest for legacy wealth?
Tune in to the entire episode as Bruce covers these great topics and so much more!
Final Four Questions:
1. What do you like to do for your continued education to further your investing?
Bruce: “I read a lot, I set up this new habit, I do it every morning, I read at least minimum 10 pages of personal development first thing in the morning. So that's what I'm reading a lot. I have a business coach, and I have him on this program. This Monday will be our sixth week of a 24-week program. Every Monday, there's 90 minutes of training on habit forming and changing and being more productive, followed up with a workbook for the next week. And you implement it each week.
2. What have been some of the lasting lessons you have learned throughout your journey?
Bruce: “Number one is, just because you did it that way yesterday, doesn't mean you can do it that way tomorrow. And yeah, you always have to pivot and learn. Number two is be careful on leverage, because you can over leverage your future and then it makes it difficult to catch up. Number three is when you're looking at your projects, always know where the biggest costs are.”
3. What advice would you give to the listeners to help them grow their businesses?
Bruce: “The best advice I can have is, talk to others who have been through a lot because they have the scars to show on what they have been through. Don't go at it alone. I'm kind of a lone wolf. In some ways. I love people around me, but I do things a lot alone, like a mountain bike six days a week by myself, mostly. But when you're getting into real estate, there's so many resources out there. Use them!”
4. How can the listeners learn more about and get connected with you?
Bruce:
Website: www.bakerson.com
Cellphone Number: 520-808-9111
Email Address: [email protected]
Resources mentioned:
Books:
Rich Dad/Poor Dad by Robert Kiyosaki
Next Episode
Bank on Yourself with Sarry Ibrahim
Do you ever get tired of placing your hard-earned money in traditional savings accounts which yields very little to no interest and then turnaround and borrow money from the same bank at a much higher interest? Do you ever wonder how you can become your own bank?
Our guest on today’s episode is Sarry Ibrahim, a financial professional and member of the Bank on Yourself Organization. He has helped countless real estate investors, business owners, and full-time employees create their own sources of financing while growing safe and predictable wealth with infinite banking.
Bank on Yourself is a concept that will change the way you think about having money in your control instead of someone else’s. Real estate investors and entrepreneurs are always seeking asset protection and ways to get creative with building capital and leveraging it to continue their investing. The Bank on Yourself philosophy is a clever method to build compounding wealth using a mutual whole life insurance policy that you just might want to take advantage of.
What does it mean to borrow cash value from an insurance policy?
Why is this super savvy compared to traditional banking?
How does the cash value accumulate in a whole life insurance policy?
What do the interest, dividends, death benefit, and loans involved in this process look like?
What are the downsides to using this process?
How can I leverage my whole life insurance policy to invest?
As entrepreneurs, we’re always seeking out opportunities to “add more tools to our tool belts.” Mutual whole life insurance is a great tool to add to your toolbox for building an abundance of wealth in a flexible, stable way.
Sarry addresses each of these pressing questions and so much more in this knowledge-packed episode!
Final Four Questions for Sarry:
1. Do you have any educational resources about this topic for people to utilize after the show?
Sarry: “On my website, www.finassetprotection.com, there are other podcasts and YouTube videos I’ve done that have more information. Plus, I definitely recommend the books “Becoming Your Own Banker” as well as “Bank on Yourself”. If you Google search ‘infinite banking concept’ or ‘bank on yourself’, you get a lot of valuable information there. I recommend doing research in any way you like learning, such as books, podcasts, videos, etc. You can also book a free consultation with me on my website.”
2. What’s your experience with your clients and them comprehending this concept?
Sarry: “It takes time, maybe on average six months, from the day I introduce this to somebody to the day they commit to a policy. It goes in phases: the intro/explanation phase, then there’s the 90-minute confidential analysis to collect information and get an idea of what the client wants to achieve, then the third phase is the proposal where we structure the whole life policy, then there’s time for underwriting and understanding it all.”
3. Is this a powerful strategy that could be leveraged for long-term retirement?
Sarry: “Yes, absolutely! It can be structured upfront and used throughout your real estate career, recycling your money, then when you reach your retirement age, you can start receiving monthly distributions from the insurance company at a guaranteed, tax-free rate. If something were to happen to you during your retirement, your family would still get the death benefit.”
4. How can the listeners learn more about you and connect with you?
Sarry: “Visit my website and book a FREE consultation with me: www.finassetprotection.com
Resources mentioned in this episode:
Books:
The Bank On Yourself Revolution by Pamela Yellen
Becoming Your Own Banker by Nelson Nash
Social Media:
www.linkedin.com/in/sarry-ibrahim-mba-ltcp-bank-on-you
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