Wait & See? or take ACTION??

Wait & See? or take ACTION??

Many people ask me:

Is this the right time to invest in apartments?

Aren’t we in a recession?

Shouldn’t I wait for things to settle down?

 

It isn’t about whether it is the right time or not…

You should be thinking “is this the right deal or not?”

 

Recessions aren’t always times of darkness. They can be seen as opportunities!

 

Many smart business people have thrived in times of recessions. They have found opportunities and capitalized on them. Not surprisingly, a ton of amazing companies were formed during times of recession.

Remember 2008-2010 recession and financial /housing market collapse?

Airbnb, Warby Parker, Venmo, WhatsApp, Uber, Pinterest, Instagram, Slack were all formed during that time. Now they are all billion dollar companies and are thriving!

 

These founders weren’t sitting around debating if they should wait and see , they thought about it and took action!

Same goes for savvy investors. There’s no shortage of smart investors who found lucrative deals during times of recession. Remember, people’s circumstances change, and economic volatility causes lots of distressed sellers and properties to go on sale.

Just today I was contacted by a broker letting me know that a property he listed 3 months ago has recently reduced its sales price by a few millions! From my perspective, it went on “sale”.

Ben and I are not planning on putting our my pencils down, we’re going to keep looking until we find a deal where the numbers look amazing! Because we’re not sitting on the sidelines, we’re not going to miss out on amazing opportunities.

 

In closing, this is the best quote to answer if this is the right time…

“The best time to start was YESTERDAY.

The next best time is NOW” 

Five Reasons Why Multifamily Real Estate Is The Best Place To Invest Right Now

Five Reasons Why Multifamily Real Estate Is The Best Place To Invest Right Now

Five Reasons Why Multifamily Real Estate Is The Best Place To Invest Right Now

With interest rates rising and the capital markets in turmoil, people’s fear is at an all time high! Let me assure you that apartments are still THE BEST place to put your money!

Five Reasons Why  Apartments Are The Best Place To Invest Right Now

  1. Hard assets like real estate are the best hedge against inflation, and apartments are arguably one of the best positioned real estate asset classes to create wealth in an inflationary environment. Why? Because the short-term leases allow apartment owners to pass along higher expenses to the tenant base through rent escalation. Apartment rent growth is outpacing inflation by a wide margin and is well positioned to do so for years to come, which will drive up returns. 

 

  1. Demographic trends are favorable for multifamily housing, particularly in regions experiencing net migration. Dallas is growing like crazy and  just moved up 5 spots in US News’ List  of Best Places to Live in 2022. The Dallas market is experiencing double-digit rent growth. It doesn’t matter if interest rates and cap rates rise, as long as they are outpaced by rent growth.

 

  1. Most of the underlying economic conditions that favor apartment investing remain solid. Employment is arguably the best economic indicator for forecasting the health of the multifamily market. There have been more than 20,000 jobs created in the Dallas market. Doing business in Texas costs less and many employers have moved here…bringing employees who need housing. Luckily, we are in the housing business and can provide affordable apartments.  😁  

 

  1. The debt terms for multifamily remain extremely attractive. Even with the recent rise in interest rates (and further increases likely on the horizon) the cost of capital for multifamily housing remains near historically low levels.  

 

  1. Multifamily real estate has proven to be recession resistant and offers superior risk-adjusted returns. In contrast, investments like stocks and cryptocurrency are subject to the whims of the market and have never felt more speculative and volatile.  Real estate is boring by comparison, but may allow you to sleep better and build more wealth in the long run. 

Even in a crisis, real estate remains a solid investment.

 

Put your cash to work in apartments—the best place to invest right now.