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The Market Chased Cheap Money & The Hype Of Values Going Up! #shorts

16 Jun 2024 · 1 min

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In this YouTube short, the speaker recounts a real‑estate panel that featured three institutional investors and two private investors. The institutional investors explained that after a multi‑year buying frenzy, they were unable to find deals at the end of 2023, indicating a market slowdown for large players. Conversely, the private investors described being priced out for the past three years due to inflated valuations, but now they are seeing buying opportunities as prices become more reasonable. The speaker uses this contrast to illustrate that the broader market has been driven by a chase for cheap money and hype around rising values, while private investors have been focused on purchasing at discounts and on intrinsic value. He emphasizes that the issue isn’t with institutional investors per se, but with the market’s cyclical hype‑driven behavior.

Chapters

I was on a panel and there were 3 institutional investors and I would call, call us 2 private investors on the panel. And the 3 institutional investors were saying that they couldn't buy real estate at the end of 2023. They were struggling to find deals, but they had a heyday leading up to that. So the last several years they were buying like crazy. And myself and the other private investor were like, we couldn't buy anything the last 3 years because the pricing was ridiculous, made no financial sense. We're finally having a heyday here buying things. And so it just kind of shows you that I have nothing wrong with institutional investors, but the market in general chased cheap money and they chased the hype of values going up where we were always trying to buy on value and trying to buy at discounts.