Wealth through real-estate investing is a dream of many, but much like the stock market, success is greatly dependent on timing: getting in at the right time can make you a fortune, but getting in at the wrong time can cause real problems with your investment. This begs the question: what’s the outlook for today’s real-estate market – is this a good time to get in?
Crush the Street recently had the opportunity to discuss these matters with real-estate maven Gino Barbaro, author of real-estate investing educational portal JakeAndGino.com as well as his business, investing, and coaching website, GinoBarbaro.com. Throughout our conversation, Gino provided plenty of insights into the fascinating and potentially lucrative world of real-estate investing.
Gino Barbaro is a licensed realtor, investor, business owner and entrepreneur. He has been investing in real estate for 15 years and has grown his portfolio to 675 units in 3 years. He has teamed up with Jake Stenziano to create Jake and Gino, a real estate educational company that offers coaching and training in real estate investing. Additionally, Gino is the best-selling author of Wheelbarrow Profits: How to Create Passive Income, Build Wealth, and Take Control of Your Destiny Through Multifamily Real Estate Investing.
Courtesy of GinoBarbaro.com
Mr. Barbaro is a graduate of IPEC (the Institute for Professional Excellence in Coaching) and is a Certified Professional Coach. In addition to Wheelbarrow Profits, Gino is also the author of the best-selling cookbook Family Food and the Friars: Experience the Richness of Italian Cuisine through Cultivating, Cutting, Cooking and Consuming with Those You Love.
Currently residing in New York with his wife and their six children, Gino Barbaro also takes time out of his busy day to provide guidance and insights via his podcast, Wheelbarrow Profits Podcast: Multifamily Real Estate Investment. A highly entertaining and informative presentation, Gino’s podcast is infused with ideas on multifamily strategies, syndication, increasing cash flow, along with some good old-fashioned “make it happen” attitude.
It’s amazing to consider how Gino Barbaro’s business endeavors started as a conversation between friends and exploded into a thriving real-estate investment business. Gino and his business partner Jake, both experts in multifamily real-estate investing have achieved, through hands-on action steps, the sort of financial freedom that seems out of reach for many people.
Since Crush the Street had the chance to interview Gino, we pounced on the opportunity to ask him for his perspective on today’s real-estate market. As Mr. Barbaro sees it, it depends not only on market cyclicality, but on where you’re looking.
According to Gino Barbaro, if you’re looking at the coasts in the U.S., capitalization rates (the rate of return on a real estate investment property based on the income that the property is expected to generate) are highly compressed right now; looking at other markets, however, the “cap rates” are a little bit higher.
However, if you’re looking at multi-family real-estate investing, the long-term outlook for this niche is great, according to Gino Barbaro. This is because there are millennials with massive student debt who are unable to buy homes, and baby boomers are retiring and are choosing to rent instead of buy another house. Furthermore, Mr. Barbaro explains, there are many people and families immigrating to the U.S. who will be looking to rent.
Courtesy of ginobarbari.mykajabi.com
But don’t get the wrong impression: according to Gino Barbaro, housing as an investment is not the dream that we all once thought it was; it’s not an ATM machine anymore. This is because people’s buying habits have undergone a shift from owning to renting in recent years. However, for multi-family real-estate investors, this can actually be a blessing.
Crush the Street also inquired about the current rising interest rate environment’s impact on real-estate investing, and according to Gino Barbaro, it is true that for the last couple of years, rates have been steady, providing a great deal of lift in asset values. What Mr. Barbaro is hoping for is that the rising interest rate environment will cause capitalization rates to rise a little bit, making multi-family properties even more profitable.
If you’re getting the impression that multi-family properties have immense wealth-building potential, you’re definitely right about that and we suggest that you visit JakeAndGino.com and GinoBarbaro.com to learn more about the incredible opportunities in today’s real-estate market. We also advise that you read Crush the Street’s market-tested financial reports, which include our report on Aggressive Wealth Accumulation: Fundamental Saving and Cash-stacking Hacks, our Forever Income report with secure lifetime cash-flow stream strategies, as well as our complete guide to gold and silver investing.