December, 2022
Where are you finding opportunities in multifamily today? I’m reading that deal volume has dropped off a cliff. Clearly the buy sell dynamic has changed. Is it that owners who want to sell are holding properties off the market? Or do sellers still have expectations that buyers will pay for proforma? Does the property need work to get it to stabilization? You’re looking at bridge loan at 8-9%. You need a highly probable path to meeting NOI targets, and most likely little to no income until then. How sure you are you the market rents are substantially higher? Did you
October 2022
John, What will your investments be worth in five years from now? Waitaminute … five years? Who wants to wait that long? We all do. Because that’s the real question real estate investors should be asking. Not “Can we 2X this property in 2 years”, which is what many of us have been asking. It is what we’ve been accustomed to, but that’s not today’s reality. Do you look at today’s interest rates and low loan-to-value ratios as “No thank you, I’ll wait until conditions stabilize”? If you do, thank you, and join the crowd, especially if you’re a buyer! Now hopefully fewer
September 2022
How do you approach someone in a networking environment? We know that real estate investing is a team sport, so we need to get out there and meet people, but what’s the most effective way to do that. I’ve been taught to introduce myself, ask them questions, look interested. That’s fine, but two people are talking already – do I just step in and interrupt? Stand by and listen? Or only seek out individuals standing alone? If you’re at a conference for real estate, there’s a lobby, and people are talking in the lobby, they want to meet people – you.
August 2022
Do any of the red-hot markets look scary to you today? As investors we have to keep our crystal balls shiny because projecting into the future is required. What trends and events will affect our investment, both local and national. Which sources of data are reliable. And what metrics should we be tracking. Markets like Phoenix, Las Vegas, and Tampa have clearly been red-hot but may be poised for changes. Zillow says some of these cities saw the biggest shares of price cuts for single family homes over the last three months, and days on market, a key indicator of buyers’ willingness to pay
July 2022
These are not times of extreme distress, despite what you might be reading. An interest rate pop of 200 basis points does not mean we’re having an economic meltdown, a real estate crisis, or anything like that. Maybe that’s right around the corner but it’s not here today. Instead, today is when to push sellers for price reductions and to hunt harder for lower rate loans. Put your offers in, let someone else over-pay or wait for the seller to come down to your price. It seems like valuations should be coming down in reaction to the hit that higher