border_rotate border_rotate

Working as a syndicator is an incredibly fulfilling career path for many; you’re constantly learning, connecting with diverse groups of people and helping them meet their needs, and networking with others who can continuously help you to grow.

But sometimes, uncontrollable external factors in the economy can lead to potential losses and stressful times in the real estate industry.

We saw an extreme example of that in 2008, and there are conflicting opinions about whether we’re facing similar extremities in 2022, even though the markets are fundamentally different.

However, current interest and mortgage rates are still jarring, and real estate investors could face potential losses in the next few years.

Joe Blackbourn of Everest Holdings clued us in on how to overcome failure while facing strenuous economic situations based on his experience during the market crash in 2008. He focuses on the importance of persistence as a team to overcome challenges and embracing dynamism, which will lead you to success.

The housing crash in 2008 versus the current market

First, some background: a housing bubble arises when home prices become artificially inflated. In 2008, many borrowers were being placed into mortgages they could not afford, so when that bubble burst, it “triggered a foreclosure crisis among homeowners and a credit crisis among the investors who owned bonds backed by these underwater mortgages.”

These crises triggered a global recession. Currently, the problem is that housing supply is unable to meet demand, which has increased the cost of housing to a new high. Another potential reason the cost of housing is increasing is because buyers are purchasing homes out of fear of missing out, rather than based on the property’s fundamental value.

Additionally, the Federal interest rate and mortgage rates are also increasing. Considering these factors, while the circumstances leading up to 2008 are different than today, there is concern that the housing bubble will similarly crash.

Overcoming losses and failures‍

The crash in 2008 left real estate investors facing losses and failures; however, there are ways to prevent those losses and overcome failures, especially as we face similar circumstances today.

Joe Blackbourn founded Everest Holdings in 2002 and persevered through the 2008 market crash; he gave us some insight on how he worked through those challenging times and overcame failures through persistence.

“You have to be prepared to take a punch,” Blackbourn states. “If you can’t get up after taking a punch, you shouldn’t be in this business. You know, things happen, leases fall apart, deals fall apart. And it feels like you’ve been gut punched, and you just have to get up the next day and start again. So persistence is just extremely important.” Blackbourn continues by stating that as a company, Everest didn’t give up: they doubled down, and they climbed out of the failures and losses to eventually greet success.

The “doubling down” is what differentiates Blackbourn’s success from others: psychologists Duckworth, et al conducted research titled “Grit: Perseverance and passion for long term goals,” which supports that the achievement of difficult goals, such as perseverance through economically challenging times, entails not only talent but also the sustained and focused application of talent over time.

Blackbourn’s experience is one example of how even during challenging times, persistence through taking punches will lead you to success.

Stay flexible

As real estate investors, flexibility is an important quality to keep up with the ever changing economic landscape and market trends.

For example, the current rising mortgage and interest rates may put a damper on real estate sales and increase overhead costs of building materials, energy, and utilities; however, keeping these trends in mind, real estate investors can focus their energies on rentals that will remain strong during in this market and continue to make their investments profitable.

Research has shown that single and multifamily rentals will remain strong in 2022, which is a trend that would be important for investors to keep in mind. Joe Blackbourn validates the importance of flexibility in real estate; for example, he states that “if it’s not the right time to be out buying hotels, we’d be doing something else, apartments or whatever it is.

And so we’ve continued to try to keep it dynamic.” Blackbourn’s insight on flexibility is especially important to consider in 2022, as real estate investors should focus on the dynamism of the market and working with current trends, such as the strength in single and multifamily investments, rather than hyperfocusing on one form of investment.

Moving Forward in 2022

Real estate investors may have hesitations about making moves as we progress through 2022 due to market fluctuations and jarring mortgage and interest rates, but Joe Blackbourn and supporting research highlights the importance of persistence and flexibility during economically challenging times. If you compile a hard-working team willing to double down and work with the changes and fluctuations, you will likely greet success down the road.

LEARNING

More articles

The Deal Makers
Listener favorites: The Deal Makers’ top episodes of season 1
In The Deal Makers S1, Agora talked real estate strategies, tips, and lessons with industry top players Brian Briscoe, Levi Benkert, Joel Fine, and more.
Learn more
Business
4 cost and effort-effective ways to build up your brand
Branding is an essential tool for CRE firms looking to attract investors, foster trust, and grow. Learn how to effectively boost your brand.
Learn more
Investor management
9 capabilities your real estate investor CRM must have
There are substantial differences in capabilities, features, and overall quality between the CRM software solutions for real estate firms. We compiled this short checklist to help you make the best decision. 
Learn more
Business
4 reasons why GPs need to invest as LPs in other GPs' deals
Investing as an LP in other GPs’ deals is an effective but overlooked practice for GPs who want to grow and learn. Here’s what you can gain by adopting it.
Learn more
Real estate tax
5 Tax Season Tips for GPs with Foreign Investors
Tax season is even trickier for GPs with investors abroad. We sat with an international tax expert to hear his top tips for GPs with foreign LPs.
Learn more
Fundraising
Real estate fundraising: data rooms and public brochures 101
Data rooms and public brochures are essential for GPs' fundraising process. Learn how to use them better and what to look for when choosing the tool to create and manage them.
Learn more
Business
Changing your mindset to fuel growth with Jorge Abreu
We set down for a talk with Jorge Abreu, CEO of Elevate Investment Group for a talk about his career journey and how he made the jump from single-family to multi-family properties.
Learn more
Investment automation
Investment management software with integrated distributions. Why is it a necessity?
Are you using generic payment services to send distribution payments? Here's why you need an investment management solution that enables you to send distributions from within the platform.
Learn more
Business
The tech trends that will drive efficiency for real estate in 2023
As market predictions point toward cutting costs and streamlining operations, we review the prominent real estate industry tech trends for 2023 and beyond.
Learn more
Tax
Make this tax season a breeze with Agora’s CPA service
Agora's K-1 preparation services provides a dedicated real estate expert CPA and a Tax Center to communicate with your CPA, send & sign documents and get a live progress overview from within the platform.
Learn more
Business
3 common friction points between GPs and LPs and how to solve them
Frictions and conflicts of interest can't be entirely avoided in real estate GP-LP partnerships. That's why it's essential to know how to solve them.
Learn more
Investment automation
Why real estate firms and GPs need investor CRM software
Learn about the main functionalities and uses of real estate investor CRM software and how it helps optimize investor relationship management.
Learn more
Business
7 features to look for in a real estate Investor Portal
Whether you’re in the market for a real estate Investor Portal or want to see if you’re getting everything you can from your own, this is the guide for you.
Learn more
News
Agora's 2022 highlights
It's been one hack of a ride for the real estate investment market. we wanted to take a moment to celebrate what we've accomplished together this year.
Learn more
Business
Building Wealth and Community with Kim Wendland, Co-Founder and Real Estate Asset Manager at Quattro Capital
Most people get into real estate to make money. But wealth isn't the only thing you can build in this business. In fact, it may not even be the most important thing… We recently sat down with Kim Wendland for an episode of The Deal Makers podcast.
Learn more
Business
5 Tips for negotiating deals in commercial real estate
Negotiating real estate deals is often glamorized, but it rarely goes down the way you see it in the movies. There are no intense stare-downs or sliding pieces of paper with mysterious numbers across a table.
Learn more
Business
Growing an Industrial Real Estate Business With Levi Benkert, Founder of Harbor Capital
While many investors focus exclusively on residential real estate, industrial real estate can be incredibly rewarding. And many industry veterans — like Levi Benkert, Founder and CEO of Harbor Capital — have jumped into the industrial real estate waters with both feet. In this article, we'll share Levi's tips for growing an industrial real estate business, as well as our own insights into the process. Let's dive in!
Learn more
Business
Sourcing and Underwriting Real Estate Deals
Consistently sourcing real estate deals takes an enormous amount of effort, systemization, and dedication. For that reason, deal sourcing is a practice that most real estate investors don’t even attempt. Even sourcing small deals can be difficult, but sourcing and underwriting large-scale deals for an REIG (Real Estate Investment Group) has its very particular set of challenges.
Learn more
The basics
General Partner vs. Limited Partner: What’s the difference?
For real estate investors, the way a particular deal is structured can play a substantial part in its overall profitability. The capital for most private equity deals is structured in a Joint Venture between a General Partner (GP) and a Limited Partner (LP).
Learn more
News
Swissroc X Agora - A new collaboration as Agora enters the Swiss market
Swissroc, a real estate investment group based in Geneva, signed an equity investment in Agora, as part of our Series A led by New York-based global venture capital and private equity firm Insight Partners and supported by Aleph, who led the previous round.
Learn more
News
Announcing our $20M Series A, Led By Insight Partners
We’re thrilled to announce that Agora has raised a $20M Series A round led by Insight Partners, with participation from Aleph. This funding round will help us expand our services and extend our reach.
Learn more
Product updates
Agora investment management platform: a new fundraising experience
Agora's new real estate fundraising tool makes it easy for real estate firms to market assets via an intuitive and highly customizable process, bringing in new prospects and commitments faster than ever.
Learn more
The Deal Makers
The steps to success for a syndicator - Insights from Joel Fine
There are many key components to consider when investing in real estate, whether you’re a real estate entrepreneur or a seasoned syndicator. Joel Fine, managing partner at Lakeline Properties shared his insights about his pivot from software engineering in Silicon Valley to becoming a full time real estate investor, syndicator, and land developer.
Learn more
Investors
Building Healthy Financial Relationships with your real estate Investors - It’s easier than you think
other than financial backing, investors can offer unparalleled business insights — based on their experiences — and resources that can help you ensure that your brand name, and your firm’s reputation in the industry are on the right track. Learn how to do it
Learn more
Real estate tax
Overcome Tax Season with reliable data
Real estate remains a highly lucrative investment, with the average house price rising almost 5% in the previous year. Investors and real estate firms alike enjoy this growth, however, right around the corner lies the one thing no one likes, Tax season.
Learn more
Product updates
Agora investment management platform: Introducing The New Investor Portal
Agora's investor portal software is leading the market in customization capabilities, ease of use, and quality of design.
Learn more
Investment automation
Out of the dark comes real estate investment automation
Learn how to utilize real estate investment automation to streamline data management, facilitate communication, avoid oversights, and maintain the trust of your prime investors.
Learn more
Investors
How to build and maintain your real estate investor network
Learn how to build and sustain a network of real estate investors and discover a real estate CRM investor management platform that streamlines these processes.
Learn more
Fundraising
The 5 secrets to accelerating real estate fundraising
Fundraising is a vital process in real estate — a requirement in reaching investment goals. You can quickly settle the upfront costs (i.e., acquisition, listing, etc.) and start earning from an investment by accelerating real estate fundraising.
Learn more
Fundraising
How to Attract, Manage, and Engage LP Investors
The right LPs for your deal may seem elusive now, but once you get headed in the right direction, they will be easy to spot.
Learn more
Investor management
What do real estate investors really want (besides ROI)?
Understanding what investors want and how to deliver it to them is crucial for any real estate investment firm looking to grow.
Learn more

See Agora in action

Talk to an expert