181: Huge Opportunity for New Multifamily Investors As Prices Set to Drop w/Brian Burke and Matt Faircloth

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 22 January 2024

⏱️ 41 minutes

🔗️ Recording | iTunes | RSS

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Summary

Multifamily real estate has crashed, but we’re not at the bottom yet. With more debt coming due, expenses rising, incomes falling, and owners feeling desperate, there’s only so much longer that these high multifamily prices can last. Over the past year, expert multifamily investors like Brian Burke and Matt Faircloth have been sitting and waiting for a worthwhile deal to pop up, but after analyzing hundreds of properties, NOTHING would work. How bad IS the multifamily market right now? Brian and Matt are back on the podcast to give their take on the multifamily real estate market. Brian sees a “day of reckoning” coming for multifamily owners as low-interest debt comes due, banks get desperate to be paid, and investors run out of patience. On the other hand, Matt is a bit more optimistic but still thinks price cuts are coming as inexperienced and overconfident investors get pushed out of the market. So, how does this information help you build wealth? In this episode, Brian and Matt share the state of the 2024 multifamily market, explain exactly what they’ve been doing to find deals, and give their strategy for THIS year that you can copy to scoop up real estate deals at a steep discount. Wealth is built in the bad markets, so don’t skip out on this one! In This Episode We Cover: The state of multifamily real estate in 2024 and how low prices could go A “day of reckoning” coming for inexperienced/overleveraged multifamily owners Whether or not we’ve reached the bottom for multifamily price drops What rookie real estate investors should do NOW to take advantage of this down market Rising mortgage rates and how increased costs have KILLED many multifamily deals Exactly what Brian and Matt are investing in during 2024 to make money no matter how the market moves And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area Expand Your Investing Knowledge With the BiggerPockets Books Be a Guest on the BiggerPockets Podcast Dave's BiggerPockets Profile Dave's Instagram Join the BiggerPockets Virtual Summit Check Out Dave On the “On the Market” Podcast Top Multifamily Investors’ Advice for Buyers in 2023? DON’T Do It Books Mentioned in the Show Raising Private Capital by Matt Faircloth The Hands-Off Investor by Brian Burke Connect with Matt: Matt's BiggerPockets Profile Matt's Website Matt's Instagram Connect with Brian: Brian's BiggerPockets Profile Brian's Website Brian's Instagram Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-181 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey, everyone. Welcome to the Bigger Pockets Podcast Network. I'm your host today, Dave Meyer,
0:13.2	and we're going to be digging into the state of multi-family in 2024. And to talk about this really important topic, we're bringing on two of
0:24.6	the best in the business. Honestly, these two investors are guys I've been following for most
0:30.5	of my career. There are people I look up to, and I promise you are going to learn a lot from
0:36.0	each of them. The first is Matt Faircloth.
0:39.2	You've probably heard him on this podcast before.
0:41.2	You've been listening for a while.
0:42.5	He's the owner of the DeRosa Group.
0:44.8	He's a Bigger Pockets Boot Camp instructor.
0:47.4	He wrote a book called Raising Private Capital and knows a ton about real estate investing.
0:53.2	The other is Brian Burke, who is the president and CEO of Praxis Capital.
0:58.0	He has been investing for a long time over 30 years,
1:03.0	and he has bought and sold over 4,000 multifamily units.
1:08.0	So if you guys want to learn about what's going on in the multifamily market,
1:11.9	these two are the people you want to be listening to. And the reason we want to talk about
1:17.4	multifamily right now is because it's facing market conditions that are very different than
1:23.6	the residential market. If you paid attention in 2023, the residential market was kind of
1:28.4	flat. There wasn't a lot going on in terms of sales volumes, but things kind of chugged along and
1:33.7	honestly outperformed a lot of expectations. But when you look at the multifamily market,
1:39.1	things are very different. Prices have dropped anywhere from 10 to 20 percent depending on where you are in the
1:46.0	country. And this obviously creates risk for multifamily investors. But the question is, does it
1:51.7	also create opportunity in 2024 to buy at a discount and get some great value? So that's
	...

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