71: The Multifamily “Bomb” is About to Blow, Here’s What You Need to Know w/Brian Burke

On The Market

BiggerPockets

News, Investing, Education, Business

4.8 • 859 Ratings

🗓️ 20 January 2023

⏱️ 54 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Multifamily real estate is by no means an easy asset class to buy into. What most people mistook as simple investments in 2020 are now turning out to be cash-hemorrhaging, high-interest, soon-to-go-bust investments. Everyone and their grandma was trying to buy the biggest apartment building they could, bidding well over asking without checking the fundamentals of the deal. Now, these buyers have to reap what they sowed by selling a solid asset at a low price or falling into foreclosure. But how did we get here? Wasn’t multifamily the hottest asset class of the past two years? This was supposed to be a foolproof way to build wealth, so what happened? Brian Burke knows, and that’s why he sat patiently on the sidelines, watching inexperienced syndicators bite off more than they could chew, refusing to listen to long-term investors. Brian has successfully predicted multiple crashes, not because he has a crystal ball, but because he knows when to take profits. He smelled something fishy happening in the multifamily space in 2019, and this same feeling saved him in 2022. So, what’s next for the multifamily housing market? Are the nation’s multifamily investments set to crash and burn? Not quite, but this could be the opportunity of a lifetime for the new investors looking for their next deal. But when should you hop in, start analyzing deals, and make bids? Stick around for this multifamily deep dive, as Brian will give you everything you need to know about the multifamily real estate market. In This Episode We Cover The multifamily “bomb” that’s about to explode and how multifamily became so overleveraged Risky debt and how new investors failed to think ahead with bridge loans and adjustable-rate financing The multifamily foreclosure crisis and how many investors could be forced into forbearance Key fundamentals to follow if you want to invest in multifamily in 2023 New construction and whether the high risk is worth the higher reward Advice for both active and passive multifamily investors who want to avoid getting burnt in 2023 And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps 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 Dave’s BiggerPockets Profile Dave’s Instagram Kathy's BiggerPockets Profile Kathy's Instagram Read The 2023 State of Real Estate Investing Report Expert or Amateur? Do You Know Who Your Real Estate Syndicator Is? Book Mentioned in the Episode The Hands-Off Investor by Brian Burke Connect with Brian: Brian's BiggerPockets Profile Brian's Instagram Praxis Capital Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-71 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

Click on a timestamp to play from that location

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 Fundrise's prospectus at fundrise.com slash
1:26.6	flagship.
1:27.4	This is a paid advertisement.
1:31.9	How high is the interest rate for the new Laurel Road high yield savings account?
1:38.1	This high. The air is really, really thin up here.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.