Brett Crosby, chief operating officer and co-founder of PeerStreet, a real estate and alternative investment company in El Segundo, Calif., acknowledges there also may be a downside to the tax changes. “Anecdotally, we have heard these changes will make it 10% more expensive to buy a home, but instead of buying property, the investor could take that money and put it into real estate debt,” he says.
“The tax changes are likely to have a calming or cooling effect on the market, but that is OK with PeerStreet because we do not want a boom-and-bust real estate market,” he says. “This will smooth out the edges of the real estate market a little.”