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 […]
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.
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.