Navigating The Market with Gino Barbaro
In this podcast, we chat with Gino Barbaro of the well-known Jacques and Gino Show. Being a significant owner of multifamily assets, Gino provides valuable insights on the current market conditions from his own experience in the field. The conversation spirals from their individual backstories to their current strategies to overcome the challenges presented by the changing market cycle. Throughout their hearty discussion, both Menasce and Barbaro provide pointers on surviving and thriving in today’s fickle market.
Understanding Market Cycles and Current Conditions
Gino’s journey in the real estate market began post the 2008 market crash, starting by acquiring a 25-unit portfolio. Currently, he holds around 1700 units and is still on an acquiring spree. To him, the current market conditions mirror the scenario of 2011-12, marking the shift from a seller’s market to a buyer’s market. He points out the recent signs that indicate the shift, such as more deals appearing on LoopNet and brokers following up enthusiastically.
How to Approach the Shifting Market
According to Barbaro, now is not the time to wait on the sidelines. It’s the time to connect with brokers, developers, and create relationships to secure profitable deals. Current deal flows are often dictated by a seller’s motivation to sell, bringing several opportunities for potential buyers. Barbaro suggests that investors focus on acquiring newer vintages from motivated sellers with reliable growth potential.
Finding the Right Deals
Specific criteria that Barbaro highlights for potential buy-right opportunities include newer assets with a preference for 1980s and newer, two-bedroom, townhome-style apartments, washer-dryers included, pitched roofs, and areas with a median income of at least $50,000. In terms of markets, places with steady growth, more jobs, stability, population growth, and investor friendliness are ideal.
Overcoming Over-supply and the Rise of Build-to-rent
While mentioning that it’s challenging to time the market, Gino emphasizes the increasing popularity of the build-to-rent model, which suggests a strong future trend. Investors should, however, be wary of markets that are currently over-supplied like Austin, Nashville, and parts of Florida.
Conclusion
Getting familiar with the current real estate market demands a blend of astute observation, strategic planning, and constant relationship building. Barbaro’s insights, derived from his personal journey and experiences, provide a valuable perspective on navigating today’s challenging real estate landscape.
