Hello and welcome. My name is Gino Barber and I am one of the co-founders of Jake in Gino.

And in this how-to lesson this week, I really want to stress, it's really important.

I've been getting a lot of negative news from multifamily investors saying, oh, the sky's falling.

Now is not the right time. In this week's edition, I'm really going to be discussing why now is the right time

and the similarities between 2008, 2009, and what's going on right now in this current economy.

First reason, I'm going to jump right into it because I'm fired up about this topic.

I love talking about this because when everyone is running to the exits, this is when people who are serious who know about investing, this is the opportunity. Foreclosures are up. You're seeing foreclosures everywhere, especially in the multifamily space. A couple of years ago, it would be unfathomable to think that people would turn in their keys. Rates were low.

Jobs were plentiful.

Money was cheap.

Rents were going up.

No one ever even saw or thought about foreclosures happening.

And what's going on right now?

Some are very public out there in 08.

People would just give back their keys.

You wouldn't hear that much publicity.

The internet had not taken root back then as it has now. Right now, it's very public. A lot of people are actually turning in their keys and saying, hey, I can't deal with this. I took out debt at

3%. Now debt's at 9%. We're going to talk about all of the other expenses that have gone

up, but there's so much more publicized and where foreclosures happen means that prices are going to

reset. So that's the first thing that we see going on happened back in 08, 09 as you hit the recession.

Things start going out bad for a lot of people, especially people who aren't operating their

properties.

It's really sexy to jump in there to buy these properties and to finance them, but a lot of these operators are not managing their properties. The second reason, back in 08, I'm going to

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