All Forum Posts by: Terry Hale

Millions of Americans unable to pay rent during the pandemic.So many in financial burden that threatens to deplete their savings Some government action is protecting many, but not enough.Hey, my crystal ball is in the shop but I do have common sense.I speak to investors from the small fish to whales.The ones that own Multi-Family (including myself)... its ugly.It could take renters (especially low-income) years to recover. Yikes....regardless "iF" the rest of the economy begins to bounce back. if they say tenants can pay [missed rent] back in two or three years...That’s capital most just wont have after losing a job.Its a sad situation, owners are surfacing to get out of this mess!Debt threatens renters in several ways. - Some have kept up with their rent payments but turned to credit cards - High-interest loans are destroying them- Others owe mounting bills directly to landlords that must be paid back - Eviction moratoriums expire, then what?

Interested to see how the multi family market is doing in today's economy. When you're looking to buy, what will be your buy criteria? 

There is a lot of talk going around, how the pandemic is affecting the banks, what has been your experience? 

Terry Hale is an active investor, trainer and CEO of a private commercial real estate firm, that provides acquisitions for all commercial property types and investment opportunities. The firm executes value-add strategies through direct and joint venture investments, primarily with existing assets located throughout the U.S. Utilizing our extensive commercial real estate expertise to create value, to either wholesale to an end buyer or reposition and stabilize for longterm capital gains.

Who's buying commercial wholesale deals in this market? 

@Erik W. A better alternative is to invest in the right properties, that means, location, size and price point. Regardless, in my opinion, multi family has a very high level of risk during a downturn. For example, self storage is a property type that has less risk than multi family, because your average per unit is less, than $100 and people can afford that, even in a down market. Regarding your statement of people getting paid $600 a week federal unemployment, you know that's not going to last. The reason MF tenants are more likely stop paying is that they tend to fall into the lower income demographic.  But, you're right, things are very unpredictable right now!

@Bjorn Ahlblad The best way to eliminate risk is to use the right strategies and techniques for investing. For example, I had deep pockets, but I have short arms, I suggest using other people's money, and always purchase property with non recourse structures, so you never give a personal guarantee. In this unpredictable market, you want to avoid risky investments like multi family, be cautious who you take your advice from. 

@Evan Polaski the unemployment numbers are real, you are correct, but the data is not useless, it's gonna take a lot more than a few places opening up to stabilize the economy, the trickle down effect of this, will be felt for years to come. 

@Erik W. I agree with you Erik, the term "safe" means there is no risk, every investor knows, there is risk, but to what degree... In my personal opinion, multi family holds way too much risk as 40+ million unemployed and growing daily puts people in a position, where they either feed their family or pay rent. Yes, people will need a place to live, but I would not encourage anyone to invest in multi family during this current market. 

With over 40 million people unemployed, is multi family a safe investment? What do you guys think?