Today, we're talking with Anna Kelley, impact real estate investor, multifamily operator, and real estate mentor and coach, about the state of real estate investing.

https://www.youtube.com/live/7AneSvWF6tQ

With today's federal debt and high inflation environment, Anna cautions that it's time to be in capital preservation mode, not focused on cash flow and appreciation.  

So if you want to see how to invest during times of uncertainty, and understand the signs of the times to determine when to use value add vs. buy and hold strategies in different economic cycles, tune in now!

With a wealth of experience spanning multiple economic downturns, Anna offers invaluable advice on understanding macroeconomic trends and adapting investment strategies. We also tackle the realities of working from home, the normalization of disruptions, and how the professional landscape has evolved post-COVID-19.

Join us as we dissect the intricate dynamics of today's real estate market. Anna Kelly shares her journey from humble beginnings to becoming a prominent real estate expert. We delve into the risks and rewards of various investment strategies, from syndications and non-traded REITs to distressed commercial properties, emphasizing the importance of informed decision-making amidst rising interest rates and economic uncertainty. Through real-world examples, we explore the impact of social media on investment behaviors and the necessity of a cautious, well-researched approach.

Understanding Real Estate Investment CyclesWhere Are We Now?Tips for Commercial and Residential Real EstateAbout Anna KelleyConnect with Anna KelleyBook A Strategy Call

Understanding Real Estate Investment Cycles

[14:22] “It doesn’t matter how smart you are, it doesn’t matter how good your job is [or] how much you know about investing, and how much you know in real estate. If you’re not really paying attention to the macro signs that things are shifting, you can make some really bad decisions about debt and go into it at the wrong time. And you can make some really bad decisions about the stock market and anything you invest in.”

In 2009, Anna Kelley decided she would never be blindsided by the marketplace again. She took the initiative to learn about market cycles and how to pay attention to major shifts in the market. Now that she understands the market cycles, she finds that Warren Buffett’s advice is timeless and true: “Be greedy when everyone’s fearful, and be fearful when everyone’s greedy.”

At a very high level, investment cycles begin at a “trough,” or a recession—basically when things have not been going well economically. This is the point at which interest rates drop in an effort to get people spending again. This recession period can generally last anywhere from 10-18 months, and then the following 2-3 years are often when the economy wakes back up again and people start to feel comfortable. It's not an overnight process, Kelly shares, but one that takes time. People have trouble trusting the economy at first, so it takes a while to build that trust back up.

Then, you get to the expansion period. This is the peak of the investment cycle, and while it can seem like a great thing, it also signals that the next recession is on the way. It might take a few years, but you’ve got to be aware of what is going on around you to take advantage of the cycles.

[21:11] “At the moment that there is absolute panic and everybody’s afraid, that is the maximum point of opportunity.” 

The reason this part of the cycle is rife with opportunity is that there’s less competition, and lots of people aren’t thinking about opportunity. If you can buy when things are at a low point and just hang on to them, you’ve got a leg up on the market. In Anna’s personal opinion, we haven’t seen the end of the recession yet, we’re still at the top of it, and it will likely take some years to recover from that. Despite that,