Real Investor Radio

Episode 70 | IMN SFR Conference, Market Sentiment, DSCR Market, & Advice to New Investors

December 9, 2024

Episode Summary:

In this episode, Craig Fuhr and Jack BeVier discuss their Thanksgiving experiences, reflecting on non-traditional meals and family traditions. They highlight insights from industry guests and the importance of learning from their journeys in real estate. The conversation shifts to the IMN SFR conference, where they share observations about market sentiment and the evolving landscape of real estate investing. They provide advice for new investors, emphasizing the significance of deal flow and the challenges of cash flow in the early years. The episode concludes with a discussion on DSCR financing and the future of the market, particularly in relation to insurance companies’ involvement.

Overview of Episode 70

Craig and Jack kicked off the episode by discussing unique Thanksgiving celebrations and reflecting on the year’s podcast episodes. They noted that many guest speakers started small in real estate, building their success through persistence and adaptability.

What Makes Single-Family Investing Unique

Jack emphasized that single-family real estate offers a low barrier to entry and transferable skills across markets. Consequently, these attributes make it an appealing asset class for middle-class investors looking to scale over time.

Highlights from the IMN SFR Conference

Jack shared his experience attending the IMN SFR Conference in Scottsdale. He noted changes in attendance, with fewer institutional players and more local and regional operators. The event featured panels on financing and operational challenges in the single-family rental space.

Current Challenges in the Real Estate Market

According to Jack, high interest rates and constrained inventory remain pressing challenges. Operators face tough conditions but continue seeking innovative ways to grow their portfolios.

The DSCR Loan Market and Trends for 2025

The discussion included insights on DSCR loans, a product increasingly popular among real estate investors. Jack predicted that while insurance companies might reduce allocations for DSCR in 2025, broader participation from smaller players could stabilize the market.

Long-Term View on Real Estate Investment

Craig and Jack reiterated the importance of maintaining a long-term perspective. They highlighted that the first 10 years of investing are often about building equity rather than generating cash flow.

Looking Ahead to 2025

Jack noted cautious optimism for 2025, emphasizing that successful operators focus on deal flow and operational efficiency. The episode concluded with plans for future discussions on market trends and strategies for navigating challenges.