2023’s MASSIVE Opportunity for Multifamily Real Estate Investing?
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- Опубліковано 31 лип 2024
- Multifamily real estate investing was almost impossible to break into over the past few years. Even those that had been in the field for decades were finding it challenging to get offers accepted or deals underwritten. Investors were throwing in almost unbelievable amounts of non-refundable earnest money, going well over asking price and analyzing deals at lightning speed, which often led to mistakes, not more money. But the tables have turned, and now, thanks to high interest rates, the buyer is in the driving seat.
And how could it be a multifamily episode without Andrew Cushman and Matt Faircloth? These two expert multifamily investors have been buying apartments for decades and helping others do the same! In this episode, Andrew and Matt break down what has gone on in the multifamily markets, why cap rates haven’t kept pace with interest rates, and what buyers can do now that sellers have lost most of their bargaining power. You’ll also get to hear their multifamily predictions for 2023, how far they expect prices to fall, and what you can do to start or scale your multifamily investing this year!
Then, Andrew and Matt take questions from the BiggerPockets forums and live Q&As with new multifamily investors. These topics range from property classes explained to raising private capital from investors (who aren’t your mom) and the risks and rewards of investing in smaller markets. Whether you’re interested in duplexes, triplexes, or two-hundred-unit apartment complexes, Andrew and Matt have answers for you!
00:00 Intro
01:52 Quick Tip
03:17 The Mortgage vs. Cap Rate Battle
13:33 Prices Are Dropping Fast
24:50 How to Start or Scale in Multifamily in 2023
31:41 2023 Goals
36:10 Multifamily Q&A
36:48 Which Property Class to Invest in
43:46 Investing in Small Markets
51:17 How to Raise Capital
57:37 Connect with Andrew and Matt!
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Books Mentioned in Today’s Show:
Long-Distance Real Estate Investing: store.biggerpockets.com/produ...
Raising Private Capital: store.biggerpockets.com/produ...
The Intention Journal: store.biggerpockets.com/produ...
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Paul Moore’s Article on Interest Rates and Cap Rates:
www.biggerpockets.com/blog/li...
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Connect with Philip:
BiggerPockets: www.biggerpockets.com/users/p...
Instagram: @the_educated_investor or / the_educated_investor
Website: www.educatedinvest.com/
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Connect with Daniel:
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Twitter: @dzapata or / dzapata
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Connect with Andrew:
BiggerPockets: www.biggerpockets.com/users/a...
LinkedIn: / andrew-cushman-959471a
Vantage Point Acquisitions: www.vpacq.com/
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Connect with Matt:
BiggerPockets: www.biggerpockets.com/users/m...
Instagram: @themattfaircloth or / themattfaircloth
DeRosa Group: derosagroup.com/
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Episode #711
Show notes at: www.biggerpockets.com/blog/re...
Thanks to both of you for sharing your knowledge.
Tom has to be one of the most pleasurable people to do business with. Very professional and thorough and from buying a house to selling a house to investing with his estate firm. it’s been quite a smooth transition. Bradley has definitely become a friend and I would recommend him to anyone buying or selling or investing
Thanks for all the pearls of wisdom you gave!
Mindset, networking and capitalizing on opportunies is the GOAL FOR 2023!! Great video guys :)
Love the info! Here’s to 2023!!
Matt! You nailed that intro buddy. Nice job
These guys did a great job!
There's always a lot to learn on your podcasts!
Lots of value bombs in this one👍
Gotta see more of your guys content
I value all your information you put out there Grant! I do want to learn the Real Estate Business the way You play it! Just wish I knew this years ago! What does one do to get in that game if Im already close to 50 and lived most of my life working and house poor?
Indianapolis IN commercial hard money lenders?
U guys are awesome
Closing on my 1st this month with a partner. Duplex in a C+ neighborhood, 1082 mortgage with 2300 in rents. 401k hit an all time high so borrowed from that for my portion of the down payment.
how did u find out the neighborhood was a C+?
Does the 2/20 rule still work in this market if raising capital? How can you justify a 2% when real returns are so low?
I’m trying to become a new investor but I still can’t find any decent deals in the northern NJ area it’s really hard out here to find any affordable deals
Just start and get good at 1 thing
Very exciting times 🎉
this was such a great session
Yeah can't wait for the great re-session.
If interest rates are higher than the cap rate, use a graduated rate or lender equity participation.
I’m ready for some good deals! 🙌🏼
Yeah I think even if I had cash with a syndication I'd never pay over 100k a door for a multi family. Not unless the door made 2000 a month.... That's just to expensive for something that always has problems.
Great episode Matt and Andrew! Would love to get some more of you guys
Been hoarding cash for this opportunity I’m ready
I'm now just able to start saving money. HVAC, plumbing, a new roof, and car troubles wiped me out. Lessons learned: seed money is an amount above your emergency fund.
So i have a minimum clear profit per month number of 10k i am looking to get, my question is should i be looking at single family, multi family, multi family commercial or commercial? for context i will be working out of northwest ohio near Toledo and will have about 50k startup available to me right away and my intention is too brrrr or buy and hold as a rental.
Run the numbers and figure out what you need...
Thanks for that reply😒
Is it best to hold long term? Or take advantage of some astronomical equity in a short period of time?
In the northeastern states the year doesn’t matter, it’s how you finish it of and neighborhood
The point made at 4:00m is so important
Thanks guys. So, are you saying, even though cash flow is a problem, buying now is good because of how low you can acquire?
Had the same problem but now I'm set to buy. A market coach [epicgirlamanda] helped me grow my portfolio up to x5 of what it was before . She was very transparent, all she did was tell me what to do and when to do it without having access to my wallet. Everything was done in my wallet without me paying a dime anywhere, its crazy. UA-cam won’t let me post her site here. To access her site,-
-make sure to add .info beside her name
@@PeytonSolso 🧢
These guys are great
Is it smart to use the high interest to make low offers on property then refinance in a few years?
After 7m now the market cap rate is still horrible
im a big fan of the biggerpockets podcast i always look forward to ur guys vids
Is this approach not for cash buyers?
How do you justify low return to and get investors sold when there are attractive risk-adjusted returns provided by other investment alternatives in this high rate environment? Real estate was traditionally sold as an inflation hedge but what is happening is opposite that.
Do more matt and andrew episodes multifamily rules😎💯👌
David is missed but this duo is pretty cool.
I have no money to even buy the first home 💀
There is always a starting point, if it’s saving up then it’s saving up, if it’s learning, if it’s doing more research then more research. I’m currently thinking of ways to raise capital. For example at my work place I think I’m going to buy a vending machine. Also making some wood working projects like coffe tables. I go online and see how much they go for and UA-cam has taught me a lot about kinds of wood and ways of assembling. The APR will go down little by little so we still have time to ride this train… if you have to change habits in eating out. Write down your expenses, write down how much you make every week or if you can make more. $125 a week X 4 weeks is $500 a
Month that’s 6K a years.
Checkout Brandon’s book about buying property with little to no money down. All sorts of loans and options. You can do it you just gotta find out how.
He mentioned finding a 10 units for $500? Lol, I'm in SoCal.. can't even find a hole in a wall for $500. A 600 s/f condo will run you $600k, and that's in a terrible neighborhood.
Man replys like this drive me nuts! Obviously he's not talking about so cal. He's just saying a great deal for whatever area your in.
Just wait until the last person moves out of Marxist CA. Plenty of deals.
🤣🤣
I love David and Rob. Don’t get me wrong. However, it is great to see other people running the show from time to time. Still love David and Rob.
@BiggerPockets do you accept unaccredited investors to invest with you?
Hi B M was BP able to answer your question? Our team accepts non accredited investors
@@Victoria_Isabel_Hernandez they didn't. My funds are in another opportunity, thanks
Mortgage rate higher than cap rate sounds a lot like: Stop buying properties to turn other people’s human need for shelter into your personal income. It sounds a lot like people are going to be able to afford their own homes when “investors” stop eating the supply.
imagine getting an adjustable rate mortgage at 3.5%......and even worse if you purposely sold someone an arm at 3.5%...
как может brrrr вернуться, если прибыль от сдачи не покрывает процентов по кредиту🤦♀️
I find it rather comical to say “find a property in a good area, that cash flows well.” Atm, I feel those metrics are in direct competition
Chinese word for Crisis is Opportunity mixed with Risk/Danger. I'd rather take the risk than regret.
But the problem is you and everyone else is stacking cash and waiting for the deals. So I think there’s still going to be a ton of competition unfortunately.
There is, but I also feel like a lot of them will be too scared to dive in because they will be waiting for the right time.
@@CoffeeAndBusiness The investors I've spoken to are still buying now. When the market is better there will be lots more wanting to buy. It sucks. I too wish I could have purchased lots more a couple years ago.
Unfortunate side affect of mainstreaming real estate investing. The world has changed since 15 years ago, its a much bigger industry now.
That is absolutely the mind set that will keep you on the sidelines during this great buying opportunity
@@Ghost-yf2fh I'm locked and loaded if something decent comes on the market. I'm on TOP of everything that gets listed! So I'm ready to rock and roll if things start popping!
😂 no goals by 2 February then gotta wait for a fresh New Year's.
Cap rates measure NOI. All the 5% cap rate means is that you are paying $20 per possible NOI dollar. V=i/r $20=$1/5% If the "spread was REAL then buying Detroit at a 10 cap when interest rates are 7% would make that market a deal! LOL Also there is no such thing as a leveraged cap rate. You have been taught incorrectly. The cap rate (the value of NOI) is exactly the same if you pay cash or finance 100%.
Got a 4 plex for sale in SoCal, who's interested?
Hi Efren, might this still be available?
@@Victoria_Isabel_Hernandez no sorry, it's sold.
Good morning everyone.
Let's tune in a listen to another great episode of bigger pockets!
Yes indeed
I believe THE BEST way to invest-- hire a pro to do all the hArd work for you 👍
Your very wrong prices will drop for years
The people who do not have the capital and track record don't need to watch this video.
who tf is this guy?
"Raise cash from pessimists." 🫡