The 5 Biggest Issues To Stay On Top Of In 2023
We are coming up to the end of what has been a very eventful year in multifamily real estate…! It seems a long time ago now, but the first quarter of 2022 actually saw prices for multifamily assets increasing at an accelerated rate compared to 2021! Even whilst chatter of interest rate increases began in […]
3 Factors that Drive Cap Rates and the Value of Multifamily Real Estate
The three key factors that drive cap rates and the value of multifamily real estate are: cost of capital, the perceived inherent risk of the investment and the expectation of future growth.
3 Components of a Great Multifamily Investment in Today’s Environment
In our experience with multifamily investments there are really three components to a great investment in the current stage of the market cycle – the quality of the asset and the story behind the business plan, an intelligent capital and debt structure, and operational excellence.
How Not to Lose Money Investing in Real Estate Syndications
It is important to understand the major sources of risk when investing passively in a multifamily syndication. Risk can be mitigated, by ensuring that sponsors are actively managing the major risks. Lower risk investment opportunities do also exist for passive investors. A great example of this is a preferred equity investment.
The importance of investor communications and how to stay in control of your passive investments
I’ve invested in a number of syndications as a passive investor. As someone with experience in real estate and investing, I feel like I have a good skillset to determine what constitutes a good investment versus a poor investment. However, something I have learned through painful experience is that although some passive investments have been […]
How we think about rent growth in the current environment
What are the factors that affect rent growth in the current market?
Real Estate cycles, Debt cycles and how they work together to influence the real estate market
The big question on every investor’s mind is, will there be a market correction in real estate? Of course, this is a complicated question that demands a complicated answer, as there are several drivers working for and against the current market. To help you to understand some of the mechanics, we have given a summary […]
Boom, bust or time to buy?
Will the Real Estate market Crash in 2022?? …There is no question that current volatility in the debt market is causing turbulence in the market, but are rising interest rates enough to break the fever of a historically hot housing market? And how does a potential real estate correction impact multifamily investors? Boom, bust, or […]
How certain are Fed and Market interest rate projections?
In March the Fed increased interest rates for the first time since 2018. The Fed indicated that they are expecting to increase rates a further 6 times in 2022 and the bond market seems to be pricing in these increases. But how much certainty is there in all of these projections? If we look at […]
Navigating investing in a shifting debt environment
Now that the Fed has taken a stance to stop asset purchases, reduce its balance sheet, and combat inflation with higher interest rates. I want to discuss the impact of rate increases on multifamily investments. Although I believe that asset prices will be largely unaffected in the near term, particularly for quality assets in quality markets where the flow of capital wants to go and where demand will continue to […]