Episode 87: $2 Billion AUM: Safely Navigating Investor Capital through the Rising Tide of Interest Rates

Real Estate Investor MBA

Capital equity and debt are the two ultimate keys to driving real estate deals and value. In today’s episode, our guest, Greg Dickerson, tackles everything about cap rates expansion and interest rates going up and how it all boils down to the cost of the capital. He explains why educating ourselves right now is a crucial thing to do especially in the state of today’s real estate market and the opportunities out there.

He also talks about what is going to happen and what we can expect in the future. Based from a historical standpoint, Greg also discusses the Fed, inflation numbers, and the consistent rent raise in order to continuously hold one’s assets. Listen to this episode and brace yourselves as Greg helps us start and grow our business, raise capital and most importantly, do bigger deals! Don’t miss it!

Key Points from This Episode:

• Greg talks about today’s state of the real estate market and how the banks are reacting.
• How does Greg tell someone who’s thinking about getting into real estate that they can still do it?
• The two things that create and drive real estate deals: equity capital and debt.
• Greg advises us that there’ll be opportunities, we just have to educate ourselves, understand what we can do, where banks are and what they are willing to do.
• What’s going to happen when the dust settles and the Fed is resolved?
• The biggest risks to the real estate market.
• Why political pressure will be put in the Fed in 2024
• If you’re a new investor, you don’t need 50 properties. Greg believes you only need a win or two.
• Greg explains that the inflation numbers being reported aren’t right because rents are currently lagging in their numbers.
• With what is happening right now, why is it definitely the time to educate yourself?
• Greg claims that we are currently in a risk-off environment right now.
• The most important message of the podcast.
• The journey of how Greg started in real estate.
• The state of the real estate market right now.
• How did the Navy help Greg in real estate?

Tweetables:

“The reason the markets are reacting like they are, and the reason bonds yields are going up and rates are going up is because the Fed said we're gonna be a hundred basis points above inflation.” – Greg Dickerson

“As the market continues to adjust, you need to be very conservative in your underwriting. You need to be very conservative in your assumptions. You need to assume whatever you're buying now is gonna be worth less potentially for a little while.” – Greg Dickerson

“I think the big opportunity is gonna be next year once we really start to see where the economy's going and the effects of what the Fed's doing. Potential slowdown in the economy as we get into 2024. That's where you might see some real opportunities.” – Greg Dickerson

“At some point, people, they can only afford what they can afford. So they quit paying or they move.” – Greg Dickerson

“I'm a developer, so I take a lot of risks and I'm used to big risks, big, big rewards. But there's also times where you have to be cautious. You have to be cautiously optimistic, and you have to just risk it off.” – Greg Dickerson

Links Mentioned:

Greg Dickerson Website

About Greg Dickerson

As an entrepreneur, real estate investor and developer, Greg has bought developed and sold over $200 million in real estate, built and remodeled hundreds of custom homes and commercial buildings and started 12 different companies from the ground up.

Greg is an expert on the topics of Real Estate and Construction. He has spoken at many real estate investing groups, masterminds and events. Greg has also been a guest commentator on the Fox Business Network with Neil Cavuto and Dave Ramsey, he has written articles for magazines and newspapers and is a featured contributor in the book Walking with the "Wise Real Estate Investor" and "Walking with the wise Entrepreneur" featuring Donald Trump, Suzi Orman, Rachel Barnes and others.

Greg has always been a very active member of his church and community serving on the boards of several non-profit organizations including Realtors Association, Home Builders Association, Remodeling Council, Community Foundation, Heart Association, Cancer Center, Education Foundation, Babe Ruth Softball, YMCA, Parks and Recreation, SPCA, PTA, School Boosters, Youth Ministry Council, Fellowship of Christian Athletes and Christian Surfers.

You can reach Greg at

434-326-3903

[e-mail]