What's up, everybody. Welcome back to this week's segment of the no limit minute. Man, I'm excited

about today because it's something that has been continuously on my mind and is something that

I feel like is probably on everyone else's mind as well. And that's this whole conversation

about a potential recession, right? Is there going to be a recession? What the heck is going on with the market?

What should we do? Where are things headed? Should I keep buying? And here's what we know. We're not going

to go super in depth, but I'm going to tell you what I know and what we're utilizing to continue to make offers

and grow. Now more than ever, specifically over the last five to 10 years, there hasn't been a whole lot of

creativity in the market. Maybe 10 years ago there was, but the last five, three, two, one year ago,

a little to no creativity because everything was best and final, best and final, best and final, you know,

highest and best. And they wanted to make sure that you were going to pay $20 million over asking, right?

Like it was insane. The cap rates extremely compressed. And the thing about the cap rates is they were

compressed. The interesting thing about them, they were compressed over the course of three different

asset classes. So two, three years ago, you could have gone in and you could have bought a B class asset

on average, about a six cap. And you could have bought a C class asset on average of about an eight cap.

And meanwhile, the A class asset is probably around three to four cap, depending on the market, the trend. That was pretty

standard for a while on cap rates in general and market trends with multifamily.

Over the last couple of years, what we saw is a massive compression over the course of all three asset classes.

So we saw A class, B class, and C class all becoming a four cap.

Didn't matter what market you're in. I mean, literally everywhere you went, competition and sane, we're looking at about a four cap regardless of the asset you buy.

So most people thinking, why would I buy an older asset at a four cap, I'm finding out like a brand new asset at the same cap rate.

It was very interesting. And of course, all those in the B and C class assets doing massive deep value ads.

They were the ones seeing the majority of the success of the last couple of years, doubling, tripling, even quadrupling their money in the course of just a couple of years.

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