In this episode of The Limited Partner Podcast, Logan Freeman shares his market insights on how the changing world order could affect the real estate industry, emphasizing the need for long-term thinking, intrinsic value, and diversification of income streams in investment. He also suggests that investors create a blended return profile with different risk profiles for a value-add strategy, given the challenges of underwriting deals in the current market environment.
Logan believes that technology will play a significant role in the real estate industry over the next decade. He advises investors to focus on location and basis and to be cautious of deals that require bridge debt to make returns look good for limited partners. Lastly, he emphasizes the importance of understanding that profits are made on the margins, the industry is hyper-local, and to leverage the experiences of other successful investors.
Logan's Market Insights
Logan Freeman discussed how the changing world order, according to Ray Dalio's book "The Changing World Order," could impact the real estate industry in a recent podcast. Freeman identified the three components of the cycle that include debt and debt monetization, internal conflicts over wealth and value gaps, and external conflicts, which could result in an emerging great power challenging the existing one. Freeman emphasized the need for long-term thinking, seeking intrinsic value and diversification of income streams in real estate investment. He also suggested that investors create a blended return profile with different risk profiles for a value-add strategy given the challenges of underwriting deals in the current market environment.
Logan's Pieces of Advice for LPs
Logan believes that there is a significant amount of capital on the sidelines waiting to be invested in commercial real estate, which he thinks presents a good opportunity for limited partners and general partners to create wealth over the next two to three years. Freeman advises that investors should think long-term, focusing on the location and the basis of properties, and be cautious of deals that require bridge debt to make returns look good for limited partners. He predicts that technology will play a significant role in the real estate industry over the next decade, which he thinks is an exciting prospect.
Words of Wisdom for LPs
Logan emphasizes that the key to success in real estate is to understand that profits are made on the margins and that the industry is hyper-local. To be successful, he advises that investors get a lot of perspectives, talk to people on both sides of the coin, and formulate their own thesis. This helps create decision filter criteria that can simplify the decision-making process and keep things from getting too complex. Leveraging the experiences of other successful investors can also be a useful strategy. Freeman notes that investors should regularly exercise their mental model and decision-making skills to adapt to the changing environment.
Who is Logan Freeman?
Logan Freeman is a successful commercial real estate investor, developer, and broker who specializes in sourcing and vetting cash-flowing properties for investors. He works with passive investors who want to own real estate without the hassle of actively managing it. Freeman offers a vertically integrated approach that combines human, relational, and structural capital to provide the best possible cash flow for his clients. Additionally, he represents buyers and sellers of multifamily and commercial properties, with a focus on off-market and investment properties. Freeman has a proven strategy that has helped him complete over $90M in CRE transactions in 2021 alone, making him a trusted and respected figure in the industry.
- Website: https://www.livefreeinvestments.com/meet-logan
- LinkedIn: https://www.linkedin.com/in/livefreeinvestments/
If you'd like to say hello, you can find Jake at @JJakeWiley on Instagram and Twitter, and on LinkedIn.
You will hear quite a bit of real estate terminology in every episode. We've aggregated the most common questions for you in the link below!