My 3 Real Estate Picks for 2024

2 words to describe this year in real estate:

Cautious optimism.?

It’s (already!) mid-January but the vibe of fresh starts is still in the air.?

I’ve been learning to surf the past few months which is humbling. Also, a great lesson in patience and staying calm.

My recent breakthrough was a big context shift:

this wave will kill me → I know how to swim, my body will carry me up.

You wait for a set, and take advantage when the timing is right,

Much like the markets.?

Last year saw a lot of pain and fear in the real estate industry,

This year the energy is totally different.

• FEDS holding rates steady
• Inflation easing
• Deal flow increasing (slowly)

Personally, I’m excited,

— especially for these 3 real estate opportunities.

Why?

1. They’re risk-mitigated
2. Take advantage of the current market cycle
3. On trend with demographic, political, and socio-economic changes

I go in-depth into each of these game-changing investments (and help you choose which is a good fit for you) in this podcast episode.

Let’s get into it.

First, this year I’m bullish on industrial real estate.

Why?

→ On-Shoring Boom

Businesses are coming back to America. This is both politically driven (Trump) and demand for more efficient supply-chain, especially after COVID.

→ Net Leases?

Tenant pays taxes, insurance fees, and maintenance costs in addition to rent.?

→ Stable Returns

Long term lease agreements (10-15 years) with reputable tenants.

→ Low Maintenance, High Rewards

Less burden and cost of property management.?

Even better,

These deals have traditionally only been available to institutional investors

(Think, $1 billion of AUM ‘assets under management’)?

My partners on this deal found a sweet spot in the market. They are making opportunities like this available to retail investors just like you. ?

If you want to know if you qualify to invest in this type of opportunity, here’s my private calendar.

The second deal on my radar for 2024:

Classic Multifamily.

Basic, yes.

And despite any negative media on the asset class,

There’s a housing shortage.

That said, some locations are better than others (think job + people growth).

My eyes are set on Dallas.

Why? Texas holds 30% of the nation's housing demand.?

Despite a boom of new units the past few years, things have stalled. This is due to interest rates and construction costs going up (a supply gap is expected by 2025).

This means opportunity.?

Not only that, reputable sponsorship teams are becoming ‘vertically integrated’. They're bringing property management and construction in-house. This cuts cost, increases control and returns for investors (which I love).

Let’s not forget multifamily is about more than returns,

You’re providing safe, clean housing (impact investing at its finest).

Despite the rocky market last year, real estate investing is a long-term play. Macro trends show renter-nation will only increase.

Third and final,

Distressed Asset Funds.

Distressed assets, a product of the current real estate cycle, are having their moment.?

→ Investors bought at the top, margins got tight, now they’re forced to sell at a discount

→ In a fund, you’re diversified from the start (4-7 assets)

→ Discounts on distressed assets mean built-in profitability

This isn’t just a cash-flow play, it’s about maximizing investor IRR.

Funds also give investors options for level of profitability.

Invest more = earn more with different share classes.

For example:

• Class A ?at $50K targets 13-16% IRR,
• While Class C at $1 Mil targets 15-18% IRR.

So there you have it, 3 real estate investments I’m excited for in 2024.

In summary:?

• Bullish on industrial real estate. Why? On-shoring boom, net lease structure, long-term reputable tenants, low maintenance costs
• Classic multifamily. Remains attractive due to housing shortage, tried-and-true business model, and opportunity for impact
• Distressed Asset Funds, a product of the current real estate cycle. Built-in profitability and diversification

If you’re interested in staying in the loop on any of these opportunities, here’s my personal calendar to strategize what’s the best fit for your investment goals.?

2024, let’s get it.

-Sarah?