What Is Your Biggest Challenge in Today's Market?

Question

The investors who are still thriving today seem to be adapting faster than everyone else.

I'm curious what challenge is having the biggest impact on your business right now:

• Finding quality deals?• Financing?• Insurance costs?• Construction costs?• Rent growth?• Property taxes?• Something else?

More importantly, what are you doing to overcome it?

I always find these discussions valuable because the solutions often come from investors who are actively in the trenches every day.

Looking forward to hearing what's working—and what isn't—in your market.

Denise Supplee · Answer

For me, one of the biggest challenges has been insurance costs. As a Realtor, property manager, and investor, I've watched insurance premiums climb significantly over the last few years, and that can have a real impact on a property's performance.

Through the co-investing club I help run, I also hear a lot of conversations around financing and finding deals that still make sense with today's numbers. It seems like many investors are having to be more patient and more selective than they were a few years ago.The good news is that investors are a resilient group. We adjust, adapt, and keep moving forward.

Adam Bartomeo · Answer

In Florida the biggest issue is vacancy. The amount of building that went on here for several years flooded the market and inventory levels spiked. This caused higher vacancies and lower pricing.

Steve Garthe · Answer

Garrett, that's a great point about the disconnect between seller expectations and buyer underwriting. I'm seeing the same thing from the financing side.

Many investors who are still getting deals done seem to be succeeding because they're willing to adjust their strategy, location, or capital stack rather than waiting for the market to come back to them.

The insurance issue is becoming a much bigger conversation as well. In some cases, we're seeing deals that look strong on paper until insurance, taxes, and carrying costs are factored in.

Have you found certain asset classes or markets that are penciling better than others right now?

Garrett Crosby · Answer

For me it's deal flow — specifically, finding properties that actually make sense at today's prices and rates. The math just doesn't work on a lot of stuff that would have been fine in 2019 or 2020. Sellers in many markets are still pricing like it's 2022, and buyers are underwriting like it's 2026. That gap is the friction.

The workaround I keep coming back to is expanding the criteria rather than trying to force a deal that doesn't pencil. That means looking at different property types, different exit strategies, or different markets. The investors I know who are still actively buying have gotten good at adjusting their box instead of waiting for the market to come to them.

Insurance is becoming a real issue in certain markets too, especially coastal California and Florida. That used to be a line item you estimated and moved on. Now it can make or break a deal depending on the property and location.

What Is Your Biggest Challenge in Today's Market?

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