J Scott Breaks Down Tariffs & How LPs Can Protect Their Portfolios | Bigger Pockets Video

Episode #215

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Sweeping new tariffs are causing sharp economic ripple effects, with stock valuations dropping last week and Americans bracing for renewed inflation. This shift creates both new risks and opportunities for real estate investors—especially passive LPs evaluating upcoming deals. Amid this uncertainty, bond yields and mortgage rates are falling fast—a welcome shift for GPs grappling with bridge loans or variable-rate debt.

The question LP investors must ask themselves now is: how do I protect my portfolio during downturns like this AND jump on opportunities coming down the pipeline?

To help answer, we brought on J Scott. He’s been investing in real estate for decades, with more experience in multifamily and single-family than most. J shares how tariffs could influence multifamily real estate and their broader economic implications. From mortgage rates to US dollar dominance, rent growth risks, and more, he gives his up-to-date view and reveals his strategy on what he’s doing now to protect his capital without taking on unnecessary risk.

Disclaimer
The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk, so use your best judgment and consult with qualified advisors before investing. You should only risk capital you can afford to lose. Remember that past performance is not indicative of future results. This podcast may contain paid advertisements or other promotional materials for real estate investment advisers, investment funds, and investment opportunities, which should not be interpreted as a recommendation, endorsement, or testimonial by PassivePockets, LLC or any of its affiliates. Viewers must conduct their own due diligence and consider their own financial situations before engaging with any of the advertised offerings, products, or services. PassivePockets, LLC disclaims all liability for direct, indirect, consequential, or other damages arising out of reliance on information and advertisements presented in this podcast.

00:00 Intro
00:47 Truth Behind Trump’s Tariffs
05:59 Risk to US Dollar?
09:41 More Manufacturing & Inflation Risks
13:03 Tariff End Goal
19:39 Mortgage Rates, Bond Yields Drop
24:55 Good or Bad for Real Estate?
27:41 Risky Investments and Opportunities
31:25 Bridge Debt Comeback?
33:46 Don’t Take Big Bets