A real estate metric I didn’t know exists.

[Derek Kemp]

Has anyone heard of this???????

I stumbled across a podcast talking about multifamily volatility. To be entirely honest, I’m a bit embarrassed to say that before watching I had no idea about the main topic (something called beta). 

If I’m understanding correctly, beta helps us figure out how “sensitive” a market is to swings in the entire national market. Pretty interesting since I’ve been wondering about different ways I could choose my next market.

Giving it my best shot to give y’all the main points here, it looks like Phoenix multifamily gives you some big upside and so does Houston. Some markets “shield” you from risk. Others “leverage” risk. And beta gives you the number for that.

As an owner of over 20 apartment complexes, I thought this was a good conversation to watch so wanted to share with everyone.