Market Volatility in 2025: What Real Estate Investors Need to Know

In this episode of the TaxSmart REI Podcast, hosts Thomas Castelli and Ryan Carriere sit down with Connor Low, CEO of Iarann Wealth, to unpack the recent volatility in the stock market and what it means for real estate investors. Connor, a former retail manager turned wealth advisor, shares his journey into wealth management and how his personal investing experience in equities, real estate, and even early crypto helped shape his client-first approach to financial planning. His firm, Iarann Wealth, focuses on reverse-engineering financial plans based on each client’s unique goals, whether that’s retiring with $20K/month, buying more real estate, or minimizing taxes.

What’s Driving the Market Chaos?

Connor attributes the 2025 market turbulence largely to uncertainty. Global tariffs are a major factor, but not the only one—interest rate risk, geopolitical tensions, and fluctuating consumer sentiment are all adding to the volatility. Despite the fear, Connor points out that the underlying economic indicators are actually solid. Inflation is cooling, unemployment remains low, and consumer spending is strong. His takeaway: the panic isn’t grounded in data, it’s driven by unpredictability.

Is It Time to Buy the Dip?

For investors who have available capital and long-term goals, Connor sees this as a strong buying opportunity. With equities trading below previous highs, lump-sum investing could yield better returns than traditional dollar-cost averaging. He advises clients not to make rash decisions—avoid panic-selling or jumping into annuities out of fear. If you can stay calm and intentional, this dip could represent a meaningful wealth-building moment.

Real Estate vs. Stocks: Where’s the Better Deal?

Many real estate investors are reevaluating their next move. With cap rates compressed, renovation costs rising, and fewer strong deals available, Connor notes that some investors are shifting into equities to take advantage of the temporary discounts. However, for those committed to real estate, he advises against forcing a deal just to stay active. Patience and underwriting discipline are more important now than ever.

Rising Costs for Flippers and Renovators

Investors focused on value-add real estate should pay close attention to inflation in materials and labor. Tariff tensions, especially with China and Canada, could raise costs on key imports like steel and lumber. Labor shortages—especially due to immigration policy shifts—could also increase project expenses. Connor suggests that those planning major renovations need to account for this volatility in their budgets and timelines.

Financial Planning: Start with the Goal

Connor emphasizes that all investment strategies should be reverse-engineered from a clearly defined goal. Whether clients want passive income, aggressive equity growth, or long-term tax planning, understanding the end goal determines the strategy. He shares examples where clients thought they wanted rental properties, but actually needed passive syndication income instead. His firm’s fee-based model gives clients tailored advice without pressure to shift assets under management.

Life Insurance & Infinite Banking: Overhyped?

The episode closes with a discussion on infinite banking and permanent life insurance. Connor’s stance is clear: these policies should be purchased for the death benefit first, not as a primary investment tool. While there are tax advantages, he believes many of the strategies circulating on social media are oversold and often misunderstood. Wealthy families and institutions may find life insurance useful for estate planning, but for most investors, there are more efficient ways to grow wealth.

Final Thoughts: Stay Calm, Stay Strategic

Connor reminds listeners that markets move in cycles. Just because strong real estate or stock opportunities are scarce now doesn’t mean they won’t return. The worst mistake investors can make right now is reacting emotionally. “Sometimes,” he says, “doing nothing is the best move.” And when in doubt, consult a professional to make sure your strategy aligns with your bigger financial picture.

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Disclaimer: This podcast summary and transcript were partly generated and may contain some errors or miss key points from the audio recording.