Should you put more capital into your investments?
We are seeing many capital calls being made to investors, where sponsors are asking investors for additional capital to buy more rate caps, for cash-in refinances or to fund other aspects of the investment.
In a situation where investors are being asked for additional capital on multiple investments, it can be difficult to make a decision on which projects, if any, new capital should be provided.
So what should passive investors ado in the current situation?
Insurance makes the (multifamily) world go round
Insurance is having a material impact on commercial real estate valuations. Are higher insurance prices here to stay? Or do temporary high insurance premiums create a unique buying opportunity?
Trouble Over the Horizon
As we witness the gradual unwinding of the rapid growth experienced during the post-pandemic era, it has become evident that property values are struggling to keep up with the Federal Reserve’s swift pace of interest rate hikes. Acquiring suitable investment properties has proven to be quite challenging over the last few months. In response to […]
Head down, eye on the ball
We have always considered asset management to be the most important element of our investment strategy. Sure, it’s important to be able to buy right, find good deals and not overpay. It’s also really important to finance right and seek the most efficient debt for any given strategy. But great asset management can be the difference between […]
Unraveling the Real Estate Puzzle Amidst Economic Uncertainty
The world we live in today is highly interconnected, overly political and therefore excessively complicated. In contrast, real estate is a long-term investment and a relatively straightforward business.
The Cold Hard Truth About Multifamily Investing
Many investors are invested in multifamily real estate with the preconceived idea that multifamily as an asset class is completely impervious to the effects of a recession and will continue to perform through any economic conditions. Given the amount of content dedicated to multifamily investing circulating in the ether, it is easy to understand why […]
Commercial Real Estate After the Latest Economic Break: Opportunities and Risks
The Federal Reserve’s aggressive interest rate hikes to combat inflation have caused significant stress on the economy, investment, and credit markets. Recently, the collapse of several banks, including SVB, Signature Bank, and Credit Suisse, has highlighted the fragility of the fractional reserve banking system. It raises questions about whether the Fed has reached the “terminal […]
Defensive Strategies for Multifamily Investing
Defensive strategies are important for both passive investors and active sponsors. Active sponsors need to proactively manage risks to ensure that they anticipate and adjust plan as necessary to ensure long term returns for investors.
Insurance: the new elephant in the room
Insurance is a necessary evil, in almost any business. More often than not, it makes economic sense to pay a premium to an insurance company for them to protect you against economic loss from extreme scenarios that could adversely affect the business. In multifamily real estate, lenders require that we buy insurance to protect their interests. So, […]
Asset Management: Keeping an eye on rent trends
One of the advantages of investing in long term rentals is the ability to actively manage the investment. Unlike stocks and other investment vehicles, there is a level of control beyond just the ability to buy and sell the underlying asset.