Multifamily Real Estate's Challenging Road Ahead

Multifamily Real Estate's Challenging Road Ahead // Right now, we’re starting to see some major issues popping up in the multifamily sector, with delinquency rates increasing, supply coming online in record numbers, and vacancy starting to tick up in many markets across the country.

And because of these changes, multifamily owners are starting to see rents flatten out or even decrease in some markets, which is causing issues for investors who have loans coming due at interest rates that might be 2-3 times higher than when these loans were originated.

So in this video, we'll talk through the biggest challenges ahead for the multifamily industry, what might contribute most to these challenges, and what's saving multifamily investors right now (that can hold long-term).

💻 TRAINING & COURSES 💻

**💰 MY FAVORITE REAL ESTATE INVESTMENT PLATFORMS 💰

** 📰 MY FAVORITE REAL ESTATE NEWSLETTER 📰

** 🏬 RESIDENTIAL RENT DATA & ESTIMATES 🏬

🕒 Timestamps 🕒
0:00 Introduction
0:49 Multifamily Headwinds
5:34 Multifamily Tailwinds
9:15 How To Learn More

#multifamily #multifamilyinvesting

*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.

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Research and articles referenced in this video:

[BreakIntoCRE]

What other product types would you like to see covered in more detail in a future video?

[caseclosed]

Another point on the rent vs own analysis is the quality of unit you can rent vs what you can buy. Many homes were built in 1970 or earlier. Whereas, these new class A apartment deliveries offering 8 weeks rent free are hard to pass on.

[oliveperk]

Thanks for a great update. Curious does break into cre cover manufactured housing?

[evanh]

I would love to see a senior housing video! Thank you for this video as always, Justin.

[tristanthierry]

Hi I just want to know if I do the cre course can I apply this to the Australian market to invest?

[Letlovelead]

People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365, 000 in stocks and assets. Wish I could accomplish that.

[siders]

@justin - I always appreciate your insights and expertise within the CRE space! Your YT channel and online learning platform simplifies a very complex industry!

[EM]

Our family office was doing $1.4B in deals per year in 2018 we are at $0 this year so far...

[extendoughh]

Up here in the northeast, where there is no avoiding podium style builds, construction prices have resulted in virtually no starts and an extreme lack of supply. Sponsors that can find a creative way to stack a deal in order for it to truly pencil will find success.

[Hwilly]

Hey Justin, I wanted to reach out and say thank you. I have been a big fan for the past couple years and your videos have been a huge help as I have been looking to transition into investment sales.

With that being said, I have my second interview with JLL as a production support analyst for their new multifamily team in Phoenix. It is a brand new team that JLL has brought on as they do not currently have a MF presence (they were studs at previous firm) but I am nervous that this could be a risk move.

I have my 3rd interview with Marcus & Millichap IPA division for their Industrial/Office team. They are well established and crush it year after year.

Do you have an opinion on what you think would be a better opportunity or any ideas on how I should decide? They are both great opportunities imo with the same pay structure😅

[andywilliams]

Almost all incoming supply is A class though. Still super low supply on workforce/affordable housing and the demand is only increasing. That's where you wanna be, especially with govt incentives.

[iamjosephkingly]

Phase Three in full swing, phase four soon.

[Kurt-rgjq]

The politicians/everyday person been talking about not enough supply as reason for everyday people suffering as rents increases/homelessness, but in CRE we get freaked out when supply increases above demand & rents decrease. Seems like a flawed system.

[online_screen_name]

Soon a good buy opportunity will show its face in some spots

[kevlarbiggy]

NYC is in a doom loop as it pertains to this market segment. Local politicians are driving the decline. The outlook is not good. Until NYC has a major change politically we are screwed.