Navigating Economic Uncertainty In Real Estate with Art Cordova

Navigating Economic Uncertainty in Real Estate With Art Cordova, Viking Capital LLC.  About this podcast  The global economy is currently teetering on the brink of a recession, and successfully navigating this challenging landscape requires a profound understanding of financial matters, ideally from an expert in the field. In this installment, viewers are fortunate to gain access to the invaluable insights of Art Cordova, Director of Finance at Viking Capital, who generously shares his proven strategies for effective financial management, with a particular emphasis on real estate investment. Leveraging his wealth of experience, Art methodically shares his approach to navigating the complexities of today's financial landscape. He delves into strategic budgeting, conducts ad hoc analyses, scrutinizes financial statements, and evaluates the operations and valuations of multi-family properties. Art highlights the significance of factoring in "below the line" expenses, which tend to be owner-specific and can vary significantly. Additionally, he provides a comprehensive overview of the distinctions between cash-based accounting and accrual-based accounting, outlining the respective advantages and disadvantages of each. Key Takeaways  1. NOI, no problem: Net Operating Income (NOI) as a key figure in valuing multi family properties. 2. Balance is everything: How to keep your balance sheet in check to stay on top. 3. Cash is king, but accrual is queen: The differences between cash-based and accrual-based accounting. 4. Plan for the worst, hope for the best: Being proactive in managing finances by seeking advice,making projections, and preparing for unexpected events. 5. Interest rates: friend or foe?: What Higher and Lower interest rates mean during a recession.  6. Teamwork makes the dream work: Building strong relationships and teams for the win.  7. Renovate to elevate: How renovations add value to properties and attract happy tenants.  8. Reviews matter: A good reputation is key for real estate success  9. Keep it rollin’: A rent roll is a crucial tool for tracking rental income and staying organized. 10. Quilt your data: Use a dashboard spreadsheet to keep all your data in one place and easily accessible. 11. Don't forget the 'below the line': When valuing properties, remember to factor in owner-specificexpenses like debt service, management fees, and CapEx. “When a recession hits, it's almost like, not a bad thing, because interest rates drop. And in our line of business, we need to be very focused on the industry, because the lower the interest rate, the more that we could get, the more properties we could buy, right?” - Art Cordova  Connect with Viking Capital  Website - https://www.vikingcapllc.com/