CAN YOU SEE THE OPPORTUNITY?

Excellent Deals for Multifamily Investments are Coming

GOOD DEALS ARE OUT THERE

The whole commercial investment space is definitely facing headwinds these days.

For example…

·   Rising interest rates put real pressure on the cash flow at a given net operating income. 

·   For Florida properties, and in other locations, the cost of insurance is rising rapidly. 

·   Inflation makes everything cost more, including labor and sub-contractors.

·   There are a lot of unknowns, such as political, macro-economic, etc., that make investors nervous.

BUT there are also some excellent opportunities ahead for those of us who invest in multifamily properties.

Let’s talk about two today.

DISTRESSED OWNERS

In our Virtual Multifamily Investor Meetup last week we noted that a number of current owners of apartment complexes are in distress.  Either they or their lender may need to sell at a discount.

It is that discount that provides a potential opportunity.  Careful analysis will still need to be done to make sure the numbers work and that the property can be purchased at the right price with the right terms.

One of the reasons a current owner may be in distress is because of the price they paid in combination with the loan terms they have.  A large number of commercial loans are coming due in the next year. 

With the increased interest rates and the reluctance of banks to make loans, the current owner may be forced either to default or to sell.  These properties might be available at a deep discount.

Of course, the increased interest rates and the reluctance of banks to loan is still a challenge for any new owner.  But, at the right price and by negotiating the right terms, deals will be found, good ones for the new owners.  The returns can be very good, too.

The challenge will be to help them solve their problem without making their problem your own.  As the financial crisis of the 2008-2009 era settled out, many wise investors were able to find excellent opportunities and did very well.

We are currently looking for distressed owners. We expect to do well when we identify the right opportunities.

THE RIGHT MARKETS

One of the investors on the call last week noted another opportunity – new markets.  Her team has gone searching around the country for markets where the factors are favorable for new multifamily investments.

Instead of shopping the popular markets in Florida and Texas, which are a bit over-priced right now, some investors are looking elsewhere.

Some examples of these favorable conditions are:

–          Growing employment and population

–          A low cost of living

–          Excellent wages

–          Not a lot of competition

These markets exist.  Great deals are being negotiated this year.  

We personally know of several operators who have been able to find and buy properties in these markets.   Others will be coming in the future.  It simply takes a willingness to look for the right markets.

We are currently looking for the right markets.  We’ll do our research, work with local commercial brokers, and identify up-and-coming opportunities for our investment partners.

PASSIVE INVESTORS CAN TAKE ADVANTAGE OF THESE OPPORTUNITIES

These days there are a number of options available to get a fair return on your investments.  Even savings accounts are offering 3% and higher interest rates right now.  With the FED raising their interest rates, banks can do the same for those with cash deposits.

But, there are so many additional advantages to investments in real estate.  Higher returns on investment for one. 

Link up with an operator you trust. They will do the active work. You can be passive.

Multifamily investments are usually longer-term investments, to allow the power of real estate to work, but they are relatively safe and have proven themselves for decades.

Consider partnering with us and learning about the opportunities available to you. 

HELP US GET TO KNOW YOU BETTER

Would you like to take advantage of the opportunities in multifamily investments?

Attune Investments provides a better return for our investors.  And we make a positive impact in people’s lives and in our world.

If you want to learn more about how others are investing with us then we invite you to join our club and request a conversation with us.  See below.

Through the power of a syndication partnership with other investors like you, working with managing partners who are experienced in managing apartment complexes, you can own multifamily assets.  

Or you can choose to loan money, get in with a clear return, and get out earlier.  

One way to learn more is at our monthly, virtual Multifamily Investor Meetup on the 3^rd Wednesday of each month at noon (Eastern).  Watch for details.

If you haven’t already subscribed to our BLOG, you can increase your knowledge and comfort with this asset class by subscribing now.  It’s free.  We publish an article every week.  SUBSCRIBE HERE And take one more step. Become a member of our ATTUNE INVESTORS CLUB in which you have more personal access to us.  JOIN HERE.