497: Multifamily Is At An Inflection Point With Most Buyers Waiting For Better Deals

Transaction volume for multifamily is down 80% from its peak. Distressed owners are holding on as long as they can to prevent selling at a big loss while buyers are waiting for more seller capitulation, and the possibility of imminent rate cuts. In markets like Austin, new supply equals 15% of total inventory, so builders will eventually be forced to sell at steep discounts. For class C properties, where heavily leveraged bridge debt owners are unable to make payments, and they don’t have the money to rehab units, they will also be forced to further lower prices. Craig McGrouther, Director of Business Development for Lone Star Capital, is helping people invest in stable, cash flowing properties with in-house property management and conservative debt.