Despite the growing popularity with Opportunity Zone investing, the potential for investor irrational exuberance exists. The truth is Opportunity Zone projects vary a great deal in quality, mainly because most Opportunity Zones simply do not have the income, population or jobs to support new construction projects. In this podcast, Neal Bawa from Grocapitus Investments and MultifamilyU explains how his company is using demographics and data-driven analysis to determine where the best Opportunity Zone investments are located, as well as some of the many myths and misconceptions about Opportunity Zones investing that most of the industry “experts” aren’t talking about.
As often mentioned at the QOZ Marketplace, not all Opportunity Zones are created equally – finding the “sweet spot” is the key to successful real estate investing. The Grocapitus investment strategy is to focus on investing in high-quality real estate in major US cities with long-term growth potential by taking on massive value-add properties and new developments in Opportunity Zones that maximize cash flow and returns. That is not easy to do, but take it from someone who’s learned real estate from literally the ground up, Mr. Bawa is on the right track with his company and his understanding that using demographics and analytics is what drives real estate profit. There is so much noise, confusion, myths, and misconceptions about what makes for a quality Opportunity Zone deal that even experienced (and inexperienced) real estate developers seem to be failing to understand fundamental differences. Listen to this podcast to learn why it’s so important to start with the demographics in mind first and why he urges “greedy investors” to stop thinking solely about the tax benefits of Opportunity Zones and rather start thinking about the basics. After all, there’s no profit to be made on a bad project.
Visit the Grocapitus.com website to get more information on their projects and investment strategy. And don’t forget to check out MultifamilyU.com to get further educated on real estate investing and join Neal Bawa on the road to successful investing!
ABOUT OUR GUEST: Neal Bawa
Neal Bawa, affectionately known by his friends as “The Mad Scientist of Multifamily” is a technologist and entrepreneur in love with the power of numbers to create profit for his real estate investors. He is the CEO / Founder at Grocapitus, a commercial real estate investment company. Neal acquires Commercial properties across the U.S., for 300+ investors with a current portfolio of over 1800 units/beds, and projected to be at 3,000 in 12 months. The portfolio includes Multifamily and student housing properties in 7 U.S. states.
Neal also serves as CEO at MultifamilyU, an apartment investing education company. He is a top rated speaker at conferences & events across the country. Nearly 4,000 students attend his multifamily seminar series each year and hundreds attend his Magic of Multifamily boot camps. Tens of thousands hear his podcast appearances and he has been featured in over two dozen podcasts and radio shows. His management techniques and revenue optimization techniques for Multifamily are considered unique in the industry.
Neal is the co-founder of the largest Multifamily Investing Meetup network in the U.S., a group of investors that has over 4000 members. Neal raises over $15 Million dollars a year for his projects.
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