I recently attended The Deal Maker Live conference in Dallas, TX. The conference was packed with good content, great people, and a ton of energy. It was also a great opportunity to network with other industry professionals and to strengthen existing and build new relationships. I was also recognized for the recent closing of our two deals, which I mentioned in my last article.
While there was ample content, below are a few selected highlights that I thought you may find of value.
Market
Overall the sentiment re the real estate market was optimistic. And while key industry headwinds that we discussed in our last article were acknowledged (e.g. rising interest rates, maturity risk on short term debt, valuations), there was also a healthy amount of discussion on how to risk mitigate against those (not overleveraging, retaining plenty of reserves and capital, careful selecting markets with strong fundamentals). Many professionals shared our view that distressed opportunities underwritten aggressively and/or not bought right will come back on the market. Jay Parsons (Real Page Economist) spoke about red flag early indicators to watch for such as: lease up rates, tenant retention rates, wage growth trends, consumer confidence, costs of materials and labor, demand vs. supply, credit card delinquency, and inventory levels. And Robert Helms discussed the benefit of real estate as a diversification strategy for the volatile stock market. He provided a good amount of historical data supporting how while inflation is adversely affecting costs, it is also benefiting real estate as a tail wind for rent increases in the short run and property value increases in the long run.
Brian Burke spoke about slowing US population growth and shifts in population among markets, with California and New York being among those recording a net decrease and Florida, Texas, Arizona, and Georgia recoding net increase (to name a few). Now, more than ever, selecting a market with solid fundamentals is imperative (see our recent article re this topic). Florida (and particularly the markets we target – Central Florida, Tampa, and Jacksonville) topped various market rankings yet again, as they continue to support strong fundamentals related to population growth, job growth, income growth, and job diversity. In addition, the quality of jobs created in those markets coupled with the net in-migration noted above continue to remain drivers for property value inflation. We will be publishing our semi-annual market update soon, so be on the look out.
Mindset
As usual, we will also sprinkle a few thoughts re mindset.
Damon John shared his personal story and journey to success through rise and grind and summed up the key to success via the SHARK principles.
- SET a goal – have clarity on what you want to do. This very much resonates with our motto of Dream.
- HOMEWORK – do your homework on the market, client, etc.
- AMOR – do not forget your loved ones. Time is finite and the one thing you cannot get back, so use it wisely and cherish the now and the moment you have together today.
- R – you aRe the brand.
- Keep swimming (despite the challenges life will serve you, whatever they are). While Damon faced many challenges along the way and started with limited resources, he did not give up. He continued to grind taking small daily steps consistently, which ultimately led to massive results.
Should you have any questions or want to learn more about real estate investing or for an overview of our target markets, please reach out to info@dbacapitalgroup.com.
Disclaimer: The information presented does not constitute legal, accounting, tax, or individually tailored investment advice. Past results do not represent or guarantee future performance.
