California Multifamily Number in 2018 - Do they make any sense?

[Alexander Gudim]

Hi BP Community,

My name is Alex and I am a new member w/ Bigger Pockets. My introduction to the community was through all the great educational content that is put on Youtube.

The reason I wanted to create this post was to discuss California multifamily real estate in 2018. I am a multifamily commercial broker. My day to day responsibilities include contacting multifamily owners and investors to try and arrange deal structures that satisfy both parties needs and expectations. As interest rates continue to climb and cap rates continue to decline, I am finding it harder and harder to have fruitful conversations with owners and investors that lead to quality real estate deals being done. This is a frustrating situation to be in day in and day out. Should I be considering working in different multifamily markets outside of California where the market conditions are more favorable?

One thing to note, I am a Junior Agent with less than one year as a commercial broker. I am still in the process of building my client list. Senior Agents in my office are complaining about a decrease in multifamily transactions, however, most Senior Agents are still closing transactions. Should I stop complaining and just pick up the phone more? or, find new creative ways of engaging with Owner/Investors outside of cold calling?

I want to start a discussion with the Bigger Pockets community to hear others perspectives on this situation. Real Estate markets are cyclical and I know that the current economic environment will change, but what are others thoughts on how to be successful as a broker in this current environment? Is this simply a game of patience and waiting for more favorable market conditions?

Any thoughts or advice would be greatly appreciated.

Thank you,

Alex