All Forum Posts by: Michael Blank

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Many assets bought in the last 2 years face challenges due to floating rate debts. Rising interest rates and expiring rate caps amplify this distress.

Right now, there's a wide gap between seller expectations and buyer offers. It's hard to find deals. 

But, with distress growing, this gap will narrow, leading to major buying opportunities, often off-market. It's crucial now to connect with brokers and stay informed.

Use this time to build strong relationships with brokers. Focus on continuing your education. Read books, listen to podcasts, join communities, and work with mentors. Do what you can now so that in 3 months or so you'll be ready to make deals. 

 Thank you. For the next 3 months or so, finding deals will be harder. It's the perfect time to start educating yourself to prepare for what is to come. Establishing relationships with brokers at this time is absolutely critical. When the opportunities come they will be off-market. And if you're not talking to brokers and making offers, you'll miss out.  

You also mentioned finding deals that are within your budget. If you focus on raising capital then you wont be as limited.

Hope this helps

Congrats for working hard and saving your money. However I'm a big fan of raising capital for investments. When you use OPM (other people's money) you won't be as limited when searching for deals that pencil. 

I wish I had started when I was your age! Which part of this process feels a bit "daunting" to you? Analyzing deals, raising capital, just wrapping your head around the concept? 

"It is not rocket science so stop acting like it is!" 

Agreed. I think for many people the thought of getting into MF investing feels overwhelming, but once you break it down you'll see it's a simple process that is doable. 

We strategically focus our multifamily investments in the Southeast region of the US for two key reasons:

Lower Costs - Properties are less expensive to acquire in the Southeast than in other parts of the country. Simply put, we can buy more NOI and rent for our dollar invested here versus other regions. This allows us to maximize returns.

Strong Growth - The Southeast, especially cities like Huntsville, Atlanta, and throughout the Carolinas, are experiencing rapid population and job growth. Huntsville for example has more STEM and tech jobs per capita than anywhere in the US. Major employers are flocking to these markets, bringing new residents and renters. This fuels the demand for multifamily housing.

Concentrating investments in one market allows you to scale faster, reduce costs, build relationships with brokers and acquire off-market deals.

Mindset is the number one thing that holds people back. It's also the number one thing that leads to success. 

Focus on your mindset. 

Sometimes, starting small is a good way to wrap your head around the concept and prove that you CAN do this.

An example in the MF space would be starting with a duplex first and then moving onto larger apartment buildings. It helps you realize that doing a larger deal isn't really that much harder. 

It sounds like you've already got your "WHY" ... your family. Keep focusing on your mindset and your reason why. You'll get to where you want to be before you know it. 

Lastly, getting support can help with being overwhelmed. There are lots of books, masterminds, mentors, and programs out there. Do your research and build your support system. 

The best and most efficient way to find great apartment building deals is through a good network of CRE brokers.

I recommend searching for them on loopnet. 

Towards the end of this year/ especially going into next year, I think we will see some opportunity. 

Quite a few operators are going to find themselves in hot water.

A lot of them jumped in without a solid financial cushion — they only had just enough cash to get started and didn't plan for unexpected costs.

Now, many are feeling the squeeze. People are starting to sell because they have these caps expiring, the property isn't performing well and they can't get more money to save the situation; no one is interested in investing more into these failing properties. It's pretty much a fire sale, with operators selling for whatever they can get to avoid losing everything. It's a tough spot for them, but it could be a golden opportunity for those ready to snatch up some deals. 

The only problem is that is it's hard to raise money right now because people are afraid.