Current Real Estate Market and Projections

[Bradley Jernigan]

What trends are people seeing regarding the current real estate market? Are sellers lowering prices due to high interest rates? Do you see this continuing heading into next year? Do you project interest rates lowering to pre-pandemic rates?

[Michael Blank]

Towards the end of this year/ especially going into next year, I think we will see some opportunity. 

Quite a few operators are going to find themselves in hot water.

A lot of them jumped in without a solid financial cushion — they only had just enough cash to get started and didn't plan for unexpected costs.

Now, many are feeling the squeeze. People are starting to sell because they have these caps expiring, the property isn't performing well and they can't get more money to save the situation; no one is interested in investing more into these failing properties. It's pretty much a fire sale, with operators selling for whatever they can get to avoid losing everything. It's a tough spot for them, but it could be a golden opportunity for those ready to snatch up some deals. 

The only problem is that is it's hard to raise money right now because people are afraid.