3 Highlights from the 2023 IMN Single-Family Rental West Forum
The IMN Single-Family Rental West Conference wrapped up with a whirlwind of insights, discussions, and expert opinions that left attendees pondering the strategic moves to make in the ever-evolving real estate landscape. From the ongoing debate of whether to buy, sell, or hold properties to the anticipation of interest rate shifts and the pervasive influence of artificial intelligence, the conference offered a comprehensive look at the challenges and opportunities that lie ahead for real estate investors in 2024.
Strategic dilemma: Buy, sell, or hold?
At the heart of the discussions was the perennial question: What's the best move for investors in 2024? The experts, unsurprisingly, had varied perspectives on whether to buy, sell, or hold tight.
Acknowledging the diverse fundamentals each investor adheres to, the consensus pointed towards increasing rents as a common ground. Most panelists urged investors to focus on enhancing NOI on existing properties to boost cash flow. Additionally, more distressed properties are expected to hit the market, opening up new buying opportunities.
Panelists recommended financing these acquisitions with interest-only bridge loans or long-term financing, providing investors with flexibility. In a market where home supply remains scarce, selling properties to capitalize on home price appreciation emerged as a viable option.
Interest rates in the spotlight: What to expect?
Interest rates loomed large in the minds of conference attendees. While most panelists predicted a gradual easing of rates toward the end of 2024, uncertainty stemming from macroeconomic factors clouded the outlook.
In response, experts advised real estate investors to stay in their comfort zones and stick to proven strategies in 2024. Experimentation with new investment strategies or property types was discouraged. It was emphasized that success in the coming year would hinge on doubling down on what works and optimizing existing strategies.
AI: Revolutionizing real estate or still on the horizon?
In the technological era, AI took center stage at the conference. Almost every company admitted to integrating AI to some extent, but the depth of implementation varied. While many leveraged ChatGPT for marketing purposes, only a few had fully integrated AI and machine learning into operational processes.
As the industry braces for the challenges of 2024, the consensus is that there’s immense potential in utilizing AI throughout business processes. The adoption of AI promises not only to curb competition but also to enhance operational efficiency.
As we step into 2024, the real estate landscape is rife with opportunities and challenges. Whether navigating the strategic crossroads of buying, selling, or holding, anticipating interest rate shifts, or embracing the transformative power of AI, investors are urged to approach the coming year with adaptability and a keen eye on industry trends.
The IMN Single-Family Rental West Conference has set the stage for a dynamic year, where success hinges on a blend of strategic acumen, resilience, and a willingness to embrace innovation in the ever-evolving world of real estate.