967: BiggerNews: Apartment Investing Took a Huge Hit, Is a Comeback On the Way? w/Brian Burke

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 7 June 2024

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

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Summary

Almost overnight, multifamily investing went from red-hot to something not even the most experienced investors would touch. After interest rates went up, rent growth stalled, and apartment supply flooded the market, the apartment investing industry became the ugly duckling of real estate. Owners struggled to get tenants and had huge balloon payments due, and no one was there to save them. But one man predicted that this would happen before anyone else—Brian Burke. After seeing a crash on the horizon, Brian sold off most of his multifamily real estate portfolio and did it at just the right time. Now, he has a new prediction that could make apartment investors very happy. But a market turnaround won’t come quickly, and if you want to ensure you don’t make the same mistakes most multifamily investors made in 2020 - 2022, you’ll need to hear this BiggerNews episode. In this BiggerNews, Brian walks through everything that went wrong with multifamily real estate, signs it’s time to sell your properties, and some hope on the horizon for 2025 that most investors have no idea about. Support today’s show sponsor, Rent App: the free and easy way to collect rent! In This Episode We Cover A multifamily real estate update and Brian’s buying plans for 2024 and 2025 The “sobering reality” of the perfectly timed “traffic accident” that hit multifamily all at once Why as soon as you sense “irrational exuberance,” it may be time to sell your real estate An optimistic prediction from Brian on when multifamily could finally get back on its feet Syndication struggles and what every syndicator/investor should be doing NOW Why the multifamily oversupply may NOT be a problem in the coming years 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 Property Manager Finder Join BiggerPockets for FREE 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 Ask David Your Real Estate Investing Question Dave’s BiggerPockets Profile Dave’s Instagram BiggerPockets’ Instagram Listen to Dave on the “On The Market” Podcast See Dave at BPCON2024 in Cancun! On the Market Podcast 214 – What to Know About “Capital Calls” As Multifamily Syndications Get “Squeezed” w/Brian Burke Book Mentioned in the Show The Hands-Off Investor by Brian Burke Connect with Brian: Brian’s BiggerPockets Profile (00:00) Intro (01:57) "Irrational Exuberance” (08:52) Investors Get Hungry (11:34) Developers Come In (14:34) The Sobering Reality (19:01) Distressed Properties (22:02) Don’t Buy Anything? (23:41) Long-Term Multifamily Predictions (26:30) Syndication Struggles Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-967 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	It seems like every single media asset that I looked at has some sort of headline saying that you should stay away from commercial investing or that multifamily is in trouble.
0:12.0	So when did all of this negative sentiment start and why are we seeing
0:16.1	this softness? Today we're covering everything on the multi-family asset class.
0:33.0	Hey investors, I'm Dave Meyer, and in this episode we were bringing back a fan favorite and a bigger pockets OG member Brian Burke.
0:35.8	You've probably seen him on this podcast or some of our sister
0:39.3	podcast.
0:39.9	He was recently on on the market.
0:42.2	And we bring him on a lot because Brian is a
0:44.5	seasoned investor in the multifamily space and today we're going to pepper him
0:49.5	with questions about multifamily and he's gonna start by giving us a little bit of a
0:54.8	history lesson to help us understand what some of the macroeconomic, some of the
1:00.8	housing demographic trends that led us to where we are in multifamily.
1:06.0	And before we jump into this, I just want to clarify that when we say multifamily,
1:11.0	we are specifically talking about commercial real estate assets which are defined as five or more units and that may seem like a arbitrary number, but it's actually not.
1:23.8	It comes from lending.
1:25.4	And the reason we're sticking with just one side of this
1:28.5	and just talking about those large multifamily assets
1:31.4	is that the residential housing market and the commercial real estate
1:34.8	market work pretty differently and you can see dynamics exist in one and it can be the totally
1:41.3	opposite in the other.
1:43.0	And last thing, before we bring on Brian,
1:45.8	our bigger news episode today is brought to you by Rent App,
	...

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