Multifamily real estate has been one of the most challenging asset classes to assess over the past few years. Every time a multi-unit property came on the market, it was bid up within days, and only the biggest and best buyers got access to it in the first place. Now, multifamily real estate investors are leaving the market in droves, scared that rising interest rates will ruin their future returns. But, this presents an excellent opportunity for wise investors like James Dainard.
James is in the bustling Seattle metro market, where deals don’t come cheap—or at least they didn’t last year. Now, the tables have turned, cap rates have expanded, and brokers are searching for buyers like James to bring deals to. He knows the mistakes many multifamily investors made in 2020 and 2021 and is keen not to repeat them. So to pivot and still profit on these pricey pieces of real estate, he’s adjusting almost everything in his buy box, analysis, and financing structure, so he’s left richer at the end of the day.
Even if you’re not planning on taking down multi-million dollar apartment complexes like James, you can still use these same principles on your own deals. If you’re looking at duplexes, triplexes, quadplexes, or any other multifamily real estate, the lessons James is teaching about debt, negotiation, contingencies, and deal analysis STILL apply. So if you want to pick up steals and deals in 2023, follow James’ lead!
00:00 Big Multifamily Opportunity! 00:59 The Market is Changing FAST 03:19 Finding the Deals 04:37 Offering Terms That Work For You 05:56 Financing the Deals 08:49 Perfect Your Pro Forma 11:46 Get Ready for 2023!
