10/16/2024
Multifamily Properties are very cheap right now. The rapid rise in interest rates has brought real estate investors the gift of GFC level price corrections. Cap rates on a national level have expanded 150bps.
There is still almost $250Billions dollars in dry powder to be deployed in Multifamily assets. While transaction volume is down, there is no shortage of liquidity. When the acquisition flood gates open this dry powder will drive values.
Now is the time to get back to basics. Start the research for market selection. Find markets that have diverse and recession resistant employment markets. Find markets that have strong demand and have been absorbing the recent new supply.
If you are a passive investors work to find quality sponsors.