This YouTube monologue (Dec 17, 2023) explains that many real estate projects and companies failed over the past year due to market shifts—unexpected inflation, rising material costs, and higher interest rates—and argues that stronger investors mitigate risk by taking control of more aspects of their projects and aligning with capable partners.
Over the last year, as the market has shifted, we have seen, number one projects fail. Whether it was fix and flip investors or hard money lenders, multifamily syndicators struggling with their deal because they underwrote it and they thought it was, you know, good. But they didn't anticipate this inflation environment, the rising material costs, they didn't anticipate the rising interest rates. There's a lot of things failing. You simply don't have a crystal ball. But the better investors, the people that you want to be aligned with and working with, are the ones that are taking control of as many pieces of the puzzle as possible so that when things that happen, it's not that hard to fix.
Physicians and High Earners — What Real Estate Can and Can't Do for Your Taxes
