In this episode, we welcome Brian Stone, a successful realtor and real estate investor with Stone Estate Group and Keller Williams in Springfield, Missouri. Brian’s journey from HR to real estate leadership offers valuable insights for anyone in the commercial real estate landscape. His passion for helping people achieve their goals and his strategic approach to real estate investing have been critical factors in his success.

Transition from HR to Real Estate

Brian Stone’s transition from a career in HR to real estate was driven by his passion for helping people achieve their personal and professional goals. As Brian mentioned, “Every goal has some kind of financial tie or need to it. And I know no other vehicle to grow wealth that is quite like real estate.” This passion has been the cornerstone of his success and his enthusiasm for his work.

Is Now a Good Time to Buy Real Estate?

A common question in the real estate market is whether now is a good time to buy. Brian and we delved into this topic, emphasizing that the answer depends on several factors, including personal investment goals, market conditions, and the specific properties under consideration. As Brian aptly put it, “It’s always a good time to buy a good deal if you’re a real estate investor.”

Understanding Market Conditions

The real estate market presents unique challenges and opportunities. Higher interest rates lead many to question the timing of their investments. However, Brian highlighted the importance of focusing on the long-term potential of property acquisitions rather than short-term interest rate fluctuations. “You make your money on the way in,” Brian explained, emphasizing the importance of securing the right property at the right price.

Analyzing Affordability and Inventory

Brian shared valuable data on national and local real estate affordability and inventory levels. In the U.S., affordability varies significantly by region, with states like Ohio, Iowa, and West Virginia offering more accessible markets compared to places like California and Hawaii. Brian pointed out that investors need not limit themselves to their local markets. Out-of-state investments can offer better opportunities, as seen with many of Brian’s clients investing in the more affordable Southwest Missouri market.

Locally, inventory levels are a crucial metric. In Southwest Missouri, the month’s supply of inventory has fluctuated but remains indicative of a seller’s market. Nationally, the inventory stands at about 2.2 months, while locally, it is around 2.1 months. Understanding these metrics helps investors make informed decisions about when and where to invest.

Diversification and Strategic Investments

Brian emphasized the importance of diversification in real estate investing. Rather than investing in a single high-priced property in an expensive market, spreading investments across multiple properties in more affordable regions can mitigate risk and enhance returns. “Do you want to have $2 million properties in a market that is more susceptible to highs and lows, or diversify that $2 million across a portfolio of income-producing properties?” Brian asked, highlighting the benefits of spreading investment risk.

Practical Insights for Investors

Throughout our conversation, Brian provided practical insights for real estate investors. Key takeaways include:

Focus on Long-Term Gains:Prioritize acquiring properties that offer long-term appreciation and cash flow rather than being deterred by short-term interest rate fluctuations.

Diversify Investments: Spread your investments across different properties and markets to mitigate risks and maximize returns.

Analyze Local Markets: Conduct thorough research on local market conditions, including affordability and inventory levels, to make informed investment decisions.

Conclusion

Brian Stone’s success in technology and real estate leadership is a testament to the power of passion, strategic thinking, and market understanding. For real estate investors and professionals in the commercial real estate landscape, Brian’s insights offer a roadmap to navigating the complexities of the market and achieving long-term success. As we concluded the episode, Brian’s enthusiasm for real estate and his dedication to helping others achieve their financial goals stood out as key elements of his remarkable journey.

Stay tuned for more episodes of Infinite Returns, where we continue to explore the intricacies of real estate investing, lending, and financial strategies. Check out our podcast channels to watch the full episode and discover other enlightening episodes.