28: Inflation Falls, Inventory Drops, and Why is Multifamily Such a Mess?

On The Market

BiggerPockets

Investing, Education, Business, News

4.8 • 859 Ratings

🗓️ 22 August 2022

⏱️ 55 minutes

🔗️ Recording | iTunes | RSS

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Summary

Single-family vs. multifamily investing. We can go on this debate for days. Small-time investors favor single-family rentals due to their low barrier to entry and ease of management. Big players and passive investors far prefer multifamily thanks to its scale and ability to bring in some serious cash flow. But, it seems that many multifamily investors have lost their way. For the past two years, buying almost any multifamily property was considered a good investment, but now things are starting to shift. Today we bring you two separate deals, one from Henry Washington and the other from Kathy Fettke. One is a single-family flip, and the other is a “passive” multifamily buy-and-hold. You’ll hear why one of these deals got ditched while the other should fetch a handsome return. This top-level analysis can help you debate future deals, as some properties look far better on paper than in real life. We’ll also touch on the latest inflation news and an update on housing market inventory. One story shows some hope of the economy recovering, while the other could spell troubling times for investors coming up ahead. In the “News vs. Noise” section, you’ll hear exactly why a housing market crash may be delayed a bit longer and how more money could be pumped back into the economy, stimulating sales and boosting buyer activity. In This Episode We Cover Deep dives into two live deals that Henry and Kathy have been presented with The latest inflation numbers and some promising signs of real economic growth Why home listings dropped by double-digit percentages and how this will affect the housing market Real estate syndications and how past successes are putting today’s deals in jeopardy Aggressive underwriting and why every passive investor MUST vet the deal before they invest 1031 funds and using Delaware statutory trusts (DSTs) to limit your tax burden The tell-tale signs of a great rental market in 2022’s changing economy And So Much More! Links from the Show BiggerPockets Forums BiggerPockets Agent Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Find an Investor Friendly Agent in Your Area Dave’s BiggerPockets Profile Dave’s Instagram Henry's BiggerPockets Profile Henry's Instagram James' BiggerPockets Profile James' Instagram Jamil's BiggerPockets Profile Jamil's Instagram Kathy's BiggerPockets Profile Kathy's Instagram Our Last Episode on Finding the Perfect Property Market Redfin Reports Newly-Listed Homes Fall Most Since 2020 Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-28 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	In a frequently shifting market, deciding how to invest can be overwhelming.
0:03.8	You need a partner that has a proven track record, BAM Capital.
0:06.6	They've navigated the Great Recession, COVID, and even the current interest rate environment, delivering max returns.
0:12.5	If that track record isn't impressive, then I don't know what it is.
0:15.2	Bam Capital is a trusted multifamily syndicator with over $1.3 billion in transactions.
0:20.8	Their disciplined investment strategy
0:22.4	targets cash flow stability, capital preservation, long-term appreciation, and accelerated tax
0:27.7	benefits. Join Bam Capital's 1,200 plus investors across America at biggerpockets.com slash bam. That's
0:34.2	biggerpockets.com slash BAM.
0:44.4	Buy low, sell high. Very easy to say, but not always so easy to do. For example, high interest rates are hurting the real estate market right now. Demand is dropping and prices in a lot of
0:49.4	markets are falling, even for many of the best assets. So it's no wonder the Fundrise Flagship Fund
0:55.6	plans to go on a buying spree expanding its billion dollar real estate portfolio over the next
1:01.4	few months. You can add the Fundrise flagship fund to your portfolio in just minutes and with
1:07.2	as little as $10 by visiting fundrise.com slash pockets.
1:11.9	Fundrise.com slash pockets.
1:14.3	Carefully consider the investment objectives, risks, charges, and expenses of the Fundrise
1:19.6	Flagship Fund before investing.
1:21.6	This and other information can be found in the fund's prospectus at fundrise.com slash
1:26.6	flagship.
1:27.4	This is a paid advertisement.
1:32.9	Hey, everyone.
1:37.8	Welcome to On the Market.
	...

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