Today we're going to
talk about real estate investing in 2023. And it's simple as follow the money. Now, I know many of you are very focused
on your real estate investing, but what you need to understand
about real estate at all time, some real estate is going up
and some real estate is going down. Most people think of real estate
as their primary house or flipping, and if that's all you do,
then you're probably going down. But for the rest of us,
professional investors were looking at the whole picture
because real estate has a lot of different asset classes,
which we're going to go into next. So when you're looking at where
the money's going, it's typically going out where are the trends
and where are the needs? Because that money will fulfill
those needs and solve the problem. There are six major property types
that big money invested. And when I say big money,
I'm talking about Wall Street. I'm talking about institutions, family offices,
any kind of manage money or big funds. Typically, they focus on industry. Will multifamily hotel single family,
which a lot of you're in retail and office. There is a lot of reasons why the big
money is moving away from these right now. Specifically interest rates work from home
pandemic, those kinds of things. So it's my belief that the big money is
going to invest in these niche properties. So you might be wondering why would big money be investing
in these small niche type properties? Well, it's because migration patterns
and buying habits and technology have all emerged
as we've all seen it. And now these are becoming more and
more opportunistic for those real estate. Invest in 2023. Real estate investing will be
a niche property, specifically workforce, housing, data center fulfillment,
medical office and life sciences. So why am I so sure about this? Because the big money
is headed in this direction right now because of the migration patterns
around the United States, the advances in technology,
and of course the work from home. So as you guys know,
I love Buckminster Fuller. Why fight the forces
when you can use them? The workforce housing is a big deal. Affordability
is probably the biggest issue right now. In fact, it's
the lowest it's been in over 30 years. Second, we all know that housing costs
are growing significantly faster than people's wages. And third, interest rates have gone up
eight times since March and are expected to go up
even more in 2023 as the Federal Reserve continues to fight inflation and higher
interest rates make it much harder for anyone
to build affordable housing data centers. Now most of you are on your phones and computers
and you want connectivity wherever you go. But right now it's centered in ten
primary markets around the United States. There's a massive undersupply
as technology rolls out and these big data
cloud servers are all over the place and they're very rarely
in the middle of the country. Currently, the vacancy rate is about 3%. And all these data centers across
the United States fulfillment centers. Now, all of you have gotten
pretty damn picky where you want the same day delivery,
but I end up buying my groceries that they get delivered to my front door. This is not going away
and this is just not Amazon. It's all kinds of places. You expect something to be at your house
the next day. As a result, most retail like bricks and mortar
and malls and those kinds of things are not doing very well. So think of fulfillment
as last mile distribution for you. That's what we're talking about here. And there's a massive demand now
and in the future medical offer. So there is about 300 million people
in the health care system right now representing almost 20% of the US GDP. Primarily. These are two things
hospitals or inpatient and medical office building,
which are outpatient. There's a big push
because of cost of the hospital, the move to outpatient, which is putting
a huge demand on medical office buildings. And let's face it, these baby boomers
aren't getting any younger. And this is an area that has low vacancy
and is very undersupplied. So the last they are in his life
sciences are bioscience. And of course, these are just labs
or crazy scientists. They go in and try to figure out how to combat the latest disease
or create the new drugs. So this is kind of a recent scenario
brought to light by COVID 19 as we realize that we have a huge need
for more research and development. There's major federal funding here, guys, for breakthrough science
to keep us all healthy in the future so we don't have to deal
with another pandemic. Currently, vacancy in life science
and bioscience is above 5%. This asset class is severely undersupplied and will continue to have federal funds
thrown at it in the future. So many of you might be frustrated
with some of the lack of opportunities you're facing right now if you were stuck
in the single family markets. What I'm asking you to do is go up
to 30,000 feet, follow the money, solve the problem and don't fight
the forces, Use them and invest in the future
where everybody else seems to be doing it right under your nose.
