RENT Magazine Q2 '22

KAYLEE MCMAHON:

PAM GOODWIN:

• The market will soften more starting in June 2022 ° By June 1 the government will reduce their bond buying. Considering the bond buying patterns historically and its effects on interest rates, I expect softening to start in June. As a result, we have to make an adjustment somewhere in these transactions. Get as creative as you can get with doing your financing. • Smart contracts and peer-to-peer lenders will trend ° Smart contracts and peer-to-peer lenders may be the way of the future, which would decrease closing costs and the amount of time to close. Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met and eliminate many of the intermediaries involved. ° Within 2 years we’ll see smart contracts become the total norm in the real estate industry because people are going to need to pivot in some other way.

• Labor and materials costs will limit growth ° Being based here in Texas, it's still booming like crazy. The biggest issue now is just labor and materials to build. Here in Texas, they are going to be developing more one-story homes versus two-story homes, just because they're not able to get the materials. • Restaurants are making a comeback ° Restaurants are also coming back. During the pandemic there were so many vacant restaurants that did not reopen, but now in April 2022, you can barely find one! As soon as they go on the market, they’re being taken. • Secondary markets in Texas will continue to grow ° We're really focused on redevelopment of properties and hitting those smaller markets in Texas that are just really growing. You can find commercial buildings as low as $300K.

• What does an investor need to do to find opportunities in this market? • Examples of value-add success stories that can help you on your journey. • How do you break into larger multifamily or commercial single net tenant leases? • Which markets are overpriced, and which are the strongest?

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