Even in deep recessions, Class B apartments are stable assets and generally withstand downward economic pressure. Class C apartments, on the other hand, pose significant risk because of unanticipated costs to repair and maint...
Unlike residential mortgages, commercial loans are vastly more complicated with thousands of different lenders with different lending guidelines and product types. As a result, the process can be overwhelming with a lot of po...
With the cost of construction and borrowing costs rising, it’s become prohibitive to build new neighborhood strip centers with very few new centers built in the last fifteen years. As a result, occupancy levels at existing pr...
40% of multifamily properties bought in Q 3 and Q 4 2020 and 2021 with variable rate debt will likely not get refinanced by their current lenders. In these scenarios, operators will be forced to attempt to raise more money vi...
As inflation has taken a big bite out of renter’s pocketbooks, delinquencies on C Class apartments have increased, and prices on these assets have come down. In the next couple years, a lot of inexperienced operators who boug...
In most tertiary markets in the Midwest, there’s been very little new building of multifamily housing in many years. Therefore, buildings in many of these markets have very high occupancy levels. These markets also tend to ha...
When making investments in Real Estate, the most important consideration is who you’re investing with. Proformas are always enticing, but the differentiator is the operator. More than the ability to judge the merits of a spec...
Unlike most other asset classes, Mobile Home Parks and Self-Storage facilities have maintained almost all of their value despite interest rates having skyrocketed over the past year. Rents in both asset classes have stabilize...
The most successful Real Estate investors determine when to invest in order to generate the highest returns. In a market where asset prices have skyrocketed, there are greater gains to be made in ground up development and lan...
Investing in single family dwellings and three to four-unit apartments can generate cash flow and appreciation, but they tend to be time consuming to manage. If you want to better leverage your time and your capital, it can ...
No matter what the economic trends, there’s always an opportunity to make money. You just need to see where the market’s heading. It’s not always in synch with the media and where everyone else is investing. Bob Fraser, Found...
Contrary to all the success stories, Real Estate is a hard business that requires resilience in order to be successful. It’s not a matter of if things will go wrong, it’s a matter of what will go wrong and when, and how you d...
Operating properties directly makes sense for people who want to be hands-on in the daily operations of a property and who have the time and experience to be successful at it. There are many cases, however where people acquir...
Real Estate is a local business that requires intimate knowledge of a market. This knowledge, plus being an expert on the daily nuts and bolt of operations, mitigates risk. Further risk is mitigated by in-house management to ...
It’s no secret that precipitously rising interest rates took many Real Estate operators by surprise, especially those who utilized shorter-term floating debt. As their loans are coming due and they’re being confronted with th...
If you’re willing to be patient and methodical with passive investing, and avoid undue risk, the rewards will compound over time beyond your wildest expectations and change your life. It just takes delaying gratification, kee...
Unless you have a very long time horizon, in which case time cures a lot of ills, being right on your timing will make you the most amount of money in Real Estate. Although Light Industrial has been white hot over the past fe...
Property management makes or breaks deals in every asset class, but no asset class is more challenging than large multifamily. There are so many people involved, and so many components to the operations, that things are alway...
Many investors over the years have built portfolios of single family rentals that have ultimately enabled them to quit their jobs and build legacy income for their families. Single family homes in the right neighborhoods can ...
Atlanta is becoming “Hollywood East” as it’s become a hub of film production with over 200 film and TV projects per year. In addition to the film industry, Atlanta has a well diversified and rapidly growing economic base. Ove...
The most recession resistant asset class in housing is Mobile Home Parks. It’s the least expensive housing option available, and it’s supply constrained because almost no new parks are being built. As an asset class, it actua...
There are many opportunities to by large apartment complexes in the middle of the country but certain coastal markets can have less risk. Large California coastal cities tend to stay consistent with high occupancy levels rega...
There are many ways avenues to making money in Real Estate but few require as little capital and take as little time to start generating cash as land flipping. By creating a mailer that goes out to land owners within a certai...
Operating in your own backyard creates operational scale, competitive local knowledge, and access to better deals. All of these significantly reduce risk for operators and investors. Long-term holds of well-located properties...