During Benzinga’s most recent webinar, Unlocking Real Estate Riches: Property Prosperity In The Digital Era, Executive Vice President of Cardone Capital Ryan Tseko shared some of his most profound insights and deepest analysis on the real estate market. With optimism intact, Tseko’s encouraging outlook suggests a promising future for investors eyeing the real estate sector.
When asked about the present real estate investment landscape, Tseko showcased his positive foresight on the market. The Executive Vice President said, “I think it’s going to be a Robin Hood moment. In the next 12 to 18 months, I think there are going to be fantastic deals. In that sweet spot of $20 million to $150 million, there’s going to be some great opportunities.”
Expanding on this statement, Tseko spoke about the power of debt maturity in driving opportunities. Succinctly, he attributed his optimistic view to the steady wave of debt coming due on commercial and multifamily properties. “I think now is the time to buy, especially if you’re going to hold on to these assets for the long term.” Tseko continued, “The higher and longer the debt is up, the better deals you’re going to see in real estate.”
To further understand the implications of what Tseko is saying, it’s worth noting the industry data. According to the Mortgage Bankers Association, an estimated $4.47 trillion of commercial real estate loans are actively on lenders’ books, with approximately 60% of the total due by 2027. Multifamily properties, in particular, account for the largest share of maturities, with real estate loans exceeding $1 trillion. Additionally, over $700 billion in loan maturities is expected this year, with multifamily dwellings and office sectors facing the largest share.
“What I’m finding right now is that debt is the biggest issue in the real estate market,” Tseko emphasized, emphasizing the significance of understanding the present debt landscape in real estate deals. “When debt goes from 3.5% to 7.5%, it’s a 400-basis-point spread. What I’ve seen right now is cap rates have gone 150 to 200 basis points spread, but we’re still seeing a little bit of a disconnect between buyers and sellers.”
For investors looking to capitalize, it will all be about seizing the opportunity. Here, Tseko offers clear advice: “If you know how to find the deal, fund the deal, get control of the deal, and close it,” significant gains stand to be made.
Founded by Grant Cardone, Cardone Capital has raised more than $1.2 billion across 23 funds from more than 14,000 non-credited and accredited investors. Currently, Cardone Capital’s real estate portfolio comprises 12,500 apartment units across 38 multifamily properties and more than 500,000 sq ft of commercial office space.
According to Tseko, Cardone Capital distributed nearly $60 million to its investors last year, and a total of $ 6,000,000 was sent out last month. The funds make institutional-grade real estate deals accessible to a wider variety of investors, as they are made available to those who are both non-credited and accredited.
As debt maturity creates a favorable market for interested real estate investors, Tseko’s insights continue to illuminate the possibility of lucrative deals within the next 12 to 18 months. The bottom line is that the future of real estate investments looks promising for those ready to navigate this landscape.
