RG 145 – Economic Year in Review & What To Expect in 2019 – LIVE Episode with Jeremy Roll
- Jeremy is the co-founder of FIBI
- Jeremy is based in Southern California
Nuts and Bolts
This interview with Jeremy Roll took place at the Intelligent Investor Real Estate Conference in Marina Del Rey.
Jeremy is the co-founder of FIBI which starts for For Investors By Investors. FIBI was founded in 2007 with Eljis San Jose after he had sat through so many sales pitches at meetings waiting for the networking part of the evening, so he set up his own networking event. FIBI is a non-profit organization so there’s no sales pitches at all and they only accept real estate investors who won’t sell at the events/ FIBI has over 30,000 registered users and is based in Southern California. The plan is to eventually set up a networking conference but as FIBI doesn’t make a profit this is a long term goal.
Jeremy went on to talk about the economy right not and his vision for the future based on where we are now. Jeremy recons that the FED will continue to raise their rates slowly because they need to get rates as high as possible so when there’s a downturn they will have cushioning to come back down and help during the recession. The Trump cuts have allowed the allowed the economy to keep going longer than anticipated and stretch the time before the next downturn. Jeremy predicts the next slow down will start toward 2020.
In commercial real estate there is CAP rate compression across lots of asset classes, for example the mobile home parks used to be at 10-13 CAP and now they’re at 5-6 CAP. In secondary markets these CAP rates have swung so far in one direction that they have to swing back but probably not all the way and not as far for single family homes. Jeremy advises that this is a good time to learn about the market but a dangerous time to invest.