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Year: 2023

Unraveling Multifamily Syndicators: Exploring the Risk of CRE CLOs & Floating-Rate Debt

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Multifamily Syndicators

In the world of real estate investment, multifamily syndication has gained significant traction as a popular investment vehicle. Multifamily syndication involves pooling funds from multiple investors to acquire or develop large apartment complexes or multifamily properties. This collaborative approach allows individual investors to participate in deals they might need more resources or expertise to pursue. However, with the increasing popularity of multifamily syndication, new financial instruments have emerged to finance these ventures, such as Commercial Real Estate Collateralized Loan Obligations (CRE CLOs) and floating-rate debt. This article will delve into the complexities of multifamily syndication, exploring the potential risks associated with CRE CLOs and floating-rate debt in this context. Understanding Multifamily Syndication Before diving into the risks, it’s crucial to grasp the concept of multifamily syndication. Multifamily syndicators are experienced real estate professionals identifying investment opportunities in the multifamily housing market. They structure the deal, secure financing, and oversee property management and operations throughout the investment lifecycle. The Appeal of Multifamily Syndication Multifamily syndication appeals to investors for several reasons. First, it offers a passive investment option, allowing individuals to enjoy the potential benefits of real estate ownership without active management responsibilities. Additionally, multifamily properties generate steady cash flow, providing investors with regular income. Introducing CRE CLOs Commercial Real Estate Collateralized Loan Obligations (CRE CLOs) are financial products that bundle commercial real estate loans into a single security. These securities are then sold to investors, with the cash flows from the underlying loans serving as collateral. CRE CLOs have become attractive for multifamily syndicators seeking additional capital for their projects. The Benefits and Risks of CRE CLOs CRE CLOs offer various benefits, including diversification and the potential for higher yields compared to traditional investments. However, they also come with risks, such as exposure to the volatile commercial real estate market and potential defaults on the underlying loans. Floating-Rate Debt in Multifamily Syndication Another financing tool used in multifamily syndication is floating-rate debt. Unlike fixed-rate loans, floating-rate debt has an interest rate that fluctuates with market conditions. This can be advantageous during low-interest rates but also exposes investors to interest rate risk. Evaluating the Risks of Floating-Rate Debt Floating-rate debt offers flexibility but can lead to higher interest expenses if rates rise. Multifamily syndicators must carefully assess their risk tolerance and market projections before opting for floating-rate debt as a financing solution. Risk Mitigation Strategies To manage the risks associated with CRE CLOs and floating-rate debt, multifamily syndicators can implement several strategies. These may include rigorous underwriting practices, maintaining adequate reserves, and creating contingency plans for potential market downturns. Impact of Economic Conditions The performance of multifamily properties and the associated financial instruments heavily relies on economic conditions. Understanding the macroeconomic factors influencing the real estate market is essential for successful multifamily syndication. Regulatory Considerations As multifamily syndication involves pooling investments from multiple individuals, it falls under specific regulatory frameworks. Syndicators must navigate compliance requirements to ensure a smooth and legally sound operation. The Human Element of Syndication Beyond financial considerations, multifamily syndication involves building relationships and trust among investors, syndicators, and property managers. This human element plays a crucial role in the success of these ventures. Conclusion Multifamily syndication offers an attractive investment opportunity for diversifying their portfolios and accessing the real estate market. However, with the introduction of financial instruments like CRE CLOs and floating-rate debt, syndicators must be cautious about the potential risks. Diligent research, risk assessment, and understanding of economic conditions are vital for successful multifamily syndication. FAQs 1. What is multifamily syndication? A. Multifamily syndication involves pooling funds from multiple investors to acquire or develop large apartment complexes or multifamily properties. 2. What are CRE CLOs? A. CRE CLOs are financial products that bundle commercial real estate loans into a single security, then sold to investors. 3. What are the benefits of multifamily syndication? A. Multifamily syndication offers passive investment options, steady cash flow, and access to the real estate market. 4. What risks are associated with CRE CLOs? A. Risks related to CRE CLOs include exposure to the volatile commercial real estate market and potential defaults on underlying loans. 5. How does floating-rate debt work in multifamily syndication? A. Floating-rate debt has an interest rate that fluctuates with market conditions, offering flexibility but exposing investors to interest rate risk.

Multifamily Construction Boom: The Top 10 Markets Leading the Way

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In recent years, the demand for multifamily housing has skyrocketed, leading to a construction boom in various cities across the United States. This article explores the top 10 markets at the forefront of this multifamily construction trend. From bustling metropolises to up-and-coming suburban areas, these cities are experiencing significant growth in the multifamily real estate sector. 1 – Austin, TX Stealing the spotlight is Austin, Texas, with 61,873 units under construction as of May 2023. Moreover, an impressive 106,000 units are in the planning and permitting stages. Despite a drop in new construction starts, Austin’s robust development activity keeps the city at the top of the list. 2-Dallas, TX Dallas, the long-standing leader, is now the runner-up with 60,532 units under construction. The city’s solid demand has maintained a robust construction pipeline, with another 163,000 units in the planning and permitting stages. Dallas has emerged as a significant player in the multifamily construction market, fueled by its business-friendly environment and affordable cost of living. The city’s population growth and low unemployment rate have contributed to the rise in demand for multifamily properties. 3-  Miami, FL Miami is our third star with 44,532 units under construction across 159 properties. The city has seen a drop in construction starts, but with a whopping 259,000 units in the pipeline, Miami’s future in multifamily development is bright. 4- Atlanta, GA Atlanta ranks fourth with 41,204 units under construction. Despite a 17% drop in new construction starts, investor confidence in Atlanta remains strong, signaling a promising future for the city’s multifamily sector. With its warm climate and booming job market, Atlanta has become a hotspot for multifamily construction. The city’s strong economic growth and a surge in millennials seeking urban living have propelled the demand for multifamily housing options. Known for its beautiful beaches and vibrant nightlife, Miami has seen a surge in multifamily development in recent years. The city’s appeal to domestic and international buyers has bolstered its multifamily real estate market. 5- Phoenix, AZ Phoenix completes our top five with 39,875 units under construction. Although it lags in the volume of units under construction, Phoenix leads the pack in completions with 3,811 units coming online in the first four months of 2023. Phoenix’s sunny weather and lower cost of living have made it an attractive destination for retirees and young professionals. This has resulted in a significant increase in multifamily construction as developers capitalize on the growing demand. 6- New York City, NY New York City remains a top contender in the multifamily construction boom due to its status as a global economic hub. The city’s ever-expanding job opportunities and cultural attractions continue to attract a diverse population, creating a consistent demand for multifamily properties. New York City was not far behind, with 38,859 units under construction in 124 properties and over 95,000 units in the planning and permitting stages. Through May, inventory expansion was relatively minimal, with only 137 units delivered, accounting for 0.2 percent of existing multifamily stock, the lowest rate on this list. 7.Denver, CO Denver’s picturesque landscapes and outdoor recreational opportunities have attracted many new residents. The city’s population influx has led to a surge in multifamily construction to accommodate the rising demand. As of May 2023, Denver ranked sixth, with 35,893 units under development in 162 properties. Furthermore, nearly 143,000 units were in the planning and permitting stages. During the first four months of the year, deliveries totaled 1,696 units, accounting for 2.4 percent of the metro’s total stock. New construction starts fell 31.7 percent in the first quarter of 2023 compared to the same period the previous year, reaching 1,580 units. Despite being significant, the rate is the third lowest among the metros in this list. The number of properties reduced as well, from 11 to nine. 8- Houston Houston, the third Texas market on this list, had a multifamily construction pipeline with 71,000 units in the planning and permitting stages and 34,709 units under construction across 132 properties. The third lowest volume of deliveries among metros in this ranking, developers completed 1,686 units through May, representing 2.3 percent of the metro’s total stock. After Houston’s 5.1 percent inventory growth the previous year, which put it second in the country for deliveries as a percentage of existing stock, there were far fewer new construction projects starting in Houston this year. Just 1,660 units in the metro saw the beginning of construction in the first quarter of 2023, a significant decline of 62.2 percent from the first quarter of last year when 4,394 new construction starts were registered. 9-  Los Angeles, CA As the largest city in the United States, Los Angeles boasts a thriving entertainment industry and a strong job market, making it an attractive destination for multifamily development. The city’s diverse neighborhoods cater to a wide range of demographics, further driving the need for multifamily housing. Los Angeles is the sole California city on this list, with 32,306 units under construction and another 160,000 in the planning and permitting stages. With 239 properties under construction, it ranks top in this ranking of metros. Meanwhile, deliveries totaled 1,926 units, or 2.7 percent of current inventory. During the first quarter of 2023, just 814 units were built in Los Angeles, the lowest volume among the top ten. The volume was down 61.4 percent from the 2,110 units that began building at the same period previous year. 10 – Charlotte, NC Charlotte’s strong job market and affordable housing options have contributed to its multifamily construction boom. As more businesses relocate to the area, the demand for housing has increased, leading to a rise in multifamily developments. Charlotte’s pipeline rounded out our top 10, with 32,188 units under development over 137 locations and another 100,000 in the planning and permitting stages. The metro’s 1,538-unit delivery volume through May was the second lowest on this list, only surpassing New York City. Through March, construction starts fell to 1,459 units, down from 3,287 units in the first quarter of 2022. This … Read more

Remarkable Journey of Istana at Wurzbach

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Remarkable Journey of Istana at Wurzbach

Today, we would like to share the incredible journey of Istana at Wurzbach, our 324-unit Class A Multifamily development in North West San Antonio. Shanti and I embarked on an ambitious real estate venture two years ago. We worked tirelessly to put raw land under contract, get it zoned, platted, and permitted, and finally, the day came when we issued the Notice to Proceed (NTP) to our builder. The project was a significant milestone for Achieve Investment Group, as we managed the entire development in-house. As the construction of Istana at Wurzbach began, the excitement was palpable. The land-clearing process revealed the stunning views that our future residents would enjoy. Fast forward to the present day, and the construction is progressing rapidly. We recently celebrated a significant milestone – the first concrete pour at the clubhouse. These behind-the-scenes moments are a testament to the hard work and dedication of everyone involved in bringing Istana at Wurzbach to life. Reflecting upon this journey, we are incredibly grateful for the lessons learned and the experiences gained from the Istana at Wurzbach project. As we continue to grow and embark on new ventures, our commitment to delivering exceptional real estate developments and contributing to our community’s growth and prosperity remains unwavering. We invite you to enjoy Part 1 of the Behind the Scenes Construction video series for Istana At Wurzbach: Istana At Wurzbach Property Overview Concrete Footings 101 Process for a Successful Pour🏗️

Multifamily Sector: Opportunities and Challenges Ahead

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Multifamily Sector

In our continuous effort to keep you informed about the real estate market, we bring to you some crucial insights from Yardi Matrix, a leading commercial real estate analytics and research firm, and Fannie Mae (FNMA), Freddie Mac (FMCC) a government-sponsored enterprise. Yardi Matrix’s recent sector-specific report, “U.S. Multifamily Outlook: Summer 2023,” reveals that despite a potentially wobbly economy and declining sales and property values, the multifamily sector remains robust. With rent growth and nearly a million new properties expected in the next two years, the sector has shown resilience. However, the high cost of debt could lead to more defaults in the near future. According to Doug Ressler, Manager of Business Intelligence at Yardi Matrix, “Multifamily risk is some of the lowest in the industry, as opposed to office or retail. This is primarily due to the fundamental fact that people need housing and there’s a shortage of it that won’t be rectified in the near future.” The report also notes that the national housing crisis is driving multifamily demand. High mortgage rates and a drop in home sales have contributed to this trend, creating a housing shortage. This is a crisis that multifamily properties can potentially capitalize on. However, landlords should also brace for challenges. The market anticipates a surge of new supply later this year and in 2024. Over a million units are expected to be under construction within the first half of 2023, with more than 430,000 units expected to be delivered by the end of the year. According to Yardi Matrix, Austin, Dallas, Miami, Atlanta, New York, and Phoenix are expected to see the highest number of new units this year. But Ressler further clarified, “The new supply is largely concentrated in about 25 major markets.” On the financial front, the rapid increase in interest rates by the Federal Reserve and a pullback in liquidity by the banking sector have created pricing uncertainty in the multifamily market. This has led to a significant drop in transactions and mortgage origination volumes in 2023. The report states, “Property fundamentals are strong, but the increase in capital costs has injected pricing uncertainty into the market and made it difficult to complete a transaction of any kind.” Fannie Mae, Freddie Mac, and Ginnie Mae issued only $20.1 billion of bonds through mid-June, compared to $55.4 billion in the first half of 2022. Ressler anticipates two more rate increases from the Fed and suggests a “wait-and-see” approach before proceeding with transactions. Despite these challenges, Ressler remains optimistic. He foresees transaction volumes rebounding in the second quarter of 2024 as interest rate clarity and new supply flow into the market. It’s clear that the multifamily sector continues to evolve. We’ll keep you updated with the latest insights and trends. Recently, we had the privilege of hosting an insightful webinar with Jeremy Roll, a full-time passive cash flow investor with over 20 years of real estate investing experience. If you may have missed it, you can download Jeremy’s presentation. and watch the full webinar replay by signing up for our premium content.

The Multifamily Industry’s Most Anticipated Events of 2023

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Multifamily Industry

As the multifamily industry continues to grow and evolve, networking opportunities become increasingly essential for professionals to stay up-to-date on the latest trends, technologies, and best practices. In 2023, there will be a multitude of events that cater to the needs of multifamily professionals looking to connect with peers, learn from industry experts, and gain new insights into the market. Here are the top 10 multifamily networking events you don’t want to miss in 2023: NMHC Annual Meeting – The National Multifamily Housing Council’s Annual Meeting is one of the largest and most influential multifamily events in the industry. With over 3,000 attendees, this conference offers an unparalleled opportunity to network with industry leaders, gain insights into industry trends, and attend educational sessions on a variety of topics.  Registration page: https://www.nmhc.org/meetings/calendar/nmhc-annual-meeting/ NAA Apartmentalize – NAA Apartmentalize is another prominent multifamily event that brings together industry professionals from across the country. This conference offers a range of educational sessions, networking events, and exhibits from more than 500 suppliers.  Registration page: https://www.naahq.org/apartmentalize Multifamily Technology and Entrepreneurship Conference – Hosted by the National Apartment Association, this event focuses on the intersection of technology and multifamily. Attendees can expect to learn about the latest technological advancements in the industry and connect with start-ups and established companies alike.  Registration page: https://www.naahq.org/mtec Multifamily Social Media Summit – The Multifamily Social Media Summit is a unique event that focuses specifically on the role of social media in the multifamily industry. Attendees can expect to learn about social media best practices, network with industry leaders, and gain insights into how social media is shaping the future of multifamily.  Registration page: https://www.multifamilysocialmedia.com/ Multifamily Women’s Summit – The Multifamily Women’s Summit is a one-day event that brings together women in the industry to network, learn, and grow. Attendees can expect to hear from inspiring speakers, participate in workshops, and connect with other women in the multifamily space.  Registration page: https://www.multifamilywomen.com/ AIM Conference – The Apartment Internet Marketing Conference is an event that focuses on the role of digital marketing in the multifamily industry. Attendees can expect to learn about the latest marketing trends and strategies, hear from industry experts, and network with other marketing professionals.  Registration page: https://www.aimconf.com/ Multifamily Executive Conference – Multifamily Executive’s annual conference offers a unique opportunity for industry professionals to connect, learn, and share ideas. Attendees can expect to hear from leading executives, attend educational sessions, and participate in networking events.  Registration page: https://www.multifamilyexecutive.com/events/mfe-conference/ Multifamily Leadership Summit – The Multifamily Leadership Summit is a two-day event that brings together industry leaders to engage in high-level discussions about the future of multifamily. Attendees can expect to hear from keynote speakers, participate in interactive sessions, and network with other leaders in the industry.  Registration page: https://www.multifamilyleadership.com/ Multifamily Operations Summit – The Multifamily Operations Summit is a conference that focuses on the operational aspects of multifamily properties. Attendees can expect to hear from experts in property management, maintenance, and leasing, as well as participate in networking events and educational sessions. Registration page: https://www.multifamilyoperationssummit.com/ Multifamily Investor Conference – Hosted by IMN, the Multifamily Investor Conference is an event that brings together investors, lenders, and other industry professionals to discuss the state of the multifamily market. Attendees can expect to hear from leading investors, participate in roundtable discussions, and network with other professionals in the industry.  Registration page: https://www.imn.org/real-estate/conference/Multifamily-Investor-Conference-East-2023/

Bridge Loans vs. Capital Raising: Which is the Better Option for Your Multifamily Investment Firm?

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Multifamily Investment Firm

If you’re a multifamily investor, you know that finding the right financing can be a challenge. Two common options are bridge loans and capital raising, but which one is the better choice for your investment firm? In this blog post, we’ll explore the pros and cons of each option and help you determine which one is right for you. What is Multifamily Investing? Multifamily investing is the process of investing in properties with multiple units, such as apartment buildings, townhomes, or condominiums. Investors can purchase these properties and earn passive income through rental payments from tenants. What is a Bridge Loan? A bridge loan is a short-term loan that is typically used to finance the purchase of a property or to bridge the gap between the purchase of a new property and the sale of an existing property. These loans are usually secured by the property itself and have higher interest rates than traditional loans. Pros of Bridge Loans for Multifamily Investing Fast funding: Bridge loans can be approved quickly, allowing investors to move quickly on properties and secure deals. No prepayment penalty: Bridge loans typically don’t have prepayment penalties, allowing investors to pay off the loan early and save money on interest. Flexible repayment terms: Bridge loans often have flexible repayment terms, allowing investors to customize their repayment schedule based on their cash flow needs. Cons of Bridge Loans for Multifamily Investing High-interest rates: Bridge loans often have higher interest rates than traditional loans, which can add up quickly. Short-term financing: Bridge loans are typically short-term loans, with repayment periods ranging from six months to three years. High risk: Because bridge loans are secured by the property itself, investors run the risk of losing the property if they’re unable to repay the loan. What is Capital Raising? Capital raising is the process of raising money from investors to finance a multifamily property. Investors can contribute money to a project in exchange for a share of the profits. Pros of Capital Raising for Multifamily Investing No interest payments: When investors contribute money through capital raising, there are no interest payments to make. Long-term financing: Capital raising can provide long-term financing for multifamily properties, allowing investors to hold onto the property and earn passive income for years to come. Diversification: Capital raising allows investors to diversify their portfolio by investing in multiple properties with different levels of risk. Cons of Capital Raising for Multifamily Investing Time-consuming: Capital raising can be a time-consuming process, requiring investors to find and pitch to potential investors. Limited control: When investors contribute money through capital raising, they often have limited control over the management of the property. Sharing profits: Investors who contribute money through capital raising must share the profits with other investors. Which Option is Right for Your Multifamily Investment Firm? Ultimately, the decision between bridge loans and capital raising depends on your investment goals and your current financial situation. If you need fast financing and are willing to take on a higher level of risk, a bridge loan may be the best option for you. If you’re looking for long-term financing and want to diversify your portfolio, capital raising may be the better choice. Regardless of which option you choose, it’s important to work with a qualified team of professionals, including attorneys, accountants, and financial advisors, to ensure that you’re making the best decisions for your investment firm. With the right guidance and support, you can build a successful multifamily investment portfolio that generates passive income for years to come.

Achieve Financial Independence with Passive Real Estate Investing: A Must-Read Book for Aspiring Investors

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Passive Real Estate Investing

Are you dreaming of attaining financial independence? Do you aspire to generate a steady stream of passive income to secure your future? If so, passive real estate investing is an avenue worth exploring. In this blog post, we will delve into the world of passive investment and introduce you to a must-read book that can guide you on your journey to financial freedom. Passive Investing: Building Wealth Without Active Involvement Passive investing has gained significant popularity in recent years, offering individuals the opportunity to generate income without actively managing investments. Unlike active investment strategies that require constant monitoring and decision-making, passive investing allows you to grow your wealth through a more hands-off approach. One of the best passive income investments that has consistently proven its worth is real estate. Real estate investments can provide a steady cash flow, potential tax advantages, and long-term appreciation. However, navigating the world of real estate investing can be daunting, especially for beginners. That’s where the recommended book comes in handy. Introducing Passive Investing in Real Estate: Your Guide to Financial Independence” If you’re looking for a comprehensive resource to help you kickstart your passive real estate investment journey, “Passive Investing in Real Estate: Your Guide to Financial Independence” is an invaluable book you should consider adding to your reading list. Written by renowned real estate expert John Smith, this book offers practical advice, insider tips, and proven strategies to help you achieve financial independence through passive real estate investing. Why Read This Book? In-depth knowledge: “Passive Investing in Real Estate” equips you with the foundational knowledge required to make informed investment decisions. You’ll learn about different real estate investment options, understanding market trends, evaluating properties, and mitigating risks.   Building passive income streams: Discover various methods to generate passive income through real estate investing. From rental properties to real estate investment trusts (REITs), the book covers a range of strategies and helps you identify the best ones that suit your financial goals. Practical guidance: The book goes beyond theory and provides actionable steps to get started. It offers insights into financing options, property management, and ways to maximize returns. You’ll gain confidence in your investment choices and develop a roadmap for financial success. Case studies and success stories: Learn from real-life examples of investors who have achieved financial independence through passive real estate investments. These case studies offer inspiration and valuable lessons to apply to your own investment journey. Future-proof strategies: The book addresses current market trends and adapts traditional strategies to the evolving real estate landscape. You’ll gain a deep understanding of how to leverage technology, stay ahead of competition, and adapt to changing market conditions. James Kandasamy’s book, Passive Investing in Commercial Real Estate: Insider Secrets to Achieving Financial Independence,” is a must-read for anyone looking to achieve financial independence through passive real estate investing. This book is not just another dry, snooze-worthy book on investing or a get-rich scheme. Instead, it is a practical guide designed for hard-working, middle-class Americans who want to make smart investments and grow their wealth. In his book, James shares insider secrets on how to be a smarter passive investor, understand the potential of passive investing, grow your confidence in finding and evaluating deals, and ultimately achieve financial independence. By following the advice in this book, you can begin to pursue your passions, serve others, and live the life you were meant to live. Don’t just take our word for it – here are some testimonials from real estate investors of all levels who have already benefited from James Kandasamy’s book: – Raul Medellin: “Excellent book for both the newbie and the seasoned passive investor in Commercial Real Estate. This book will show you the map you need to follow.” – Chris T: “A must-read for anyone looking to invest into a syndication!” – Yan Yan: “I listened to the author’s interview on one of the podcasts. Then I read this book. It walks you through the whole process and tells you all the “secrets” from an insider perspective.” – Joseph Abruzzo: “This book will get you started setting up a good foundation for your investment success in real estate.” – Sheetal: “This simple book from James Kandasamy will get you sophisticated in terms of understanding the world of passive investing in commercial real estate.” – Tazman: “This book is a must-read if you are a passive Investor. James made this book easy to understand and comprehend.” here are some reviews Explore the world of passive investing in real estate with our comprehensive guide, available in both audiobook and physical book formats. Unlock the secrets to successful commercial real estate investments with insights from PassiveInvestingInRealEstate.com and AchieveInvestmentGroup.com. Start your journey to financial growth today! About james kandasamy James Kandasamy is the accomplished CEO of Achieve Investment Group and Brightest Multifamily Investors. He is a notable figure in the industry with a wealth of experience and expertise in commercial real estate. CEO James Kandasamy has also authored the insightful book, “Passive Investing in Commercial Real Estate,” which offers invaluable insights and strategies for investing in this lucrative sector. His leadership and knowledge make him a trusted resource for investors seeking to navigate the world of multifamily real estate. CONCLUSION If you aspire to achieve financial independence through passive real estate investing, “Passive Investing in Real Estate: Your Guide to Financial Independence” is an essential resource that deserves your attention. By following the insights and strategies outlined in this book, you can embark on a path towards building wealth, generating passive income, and securing a brighter financial future. To learn more and start your journey towards financial independence through passive real estate investing, Make an investment in your future today with Achieve Investment Group.

Asset Prices Are In Danger Make Sure You Do This To Protect Your Money

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apartment investment group

we had the privilege of hosting an insightful webinar with Jeremy Roll, a full-time passive cash flow investor with over 20 years of real estate investing experience. For those who may have missed it, we’d like to share some of the key takeaways from Jeremy’s presentation. Jeremy began by providing a brief overview of his background, emphasizing that he is a lower-risk, long-term passive cash flow investor. He then moved on to discuss why he is currently focused on protecting his equity in this uncertain economic climate. A quick recap of the past few years: – 2020 saw a crash in the stock market, quickly propped up by record money printing and other pandemic measures. – 2021 was a year of tailwinds, with record money printing and quantitative easing leading to increased asset prices. – However, 2022 was a year of headwinds, with stimulus measures ending, the Federal Reserve raising interest rates, and the potential for increased cap rates and reduced asset prices. Looking forward to 2023, Jeremy anticipates a year of asset price reductions and a possible recession. He noted that inflation is a major challenge right now, with real inflation exceeding 10%, which could significantly impact real estate investments. To protect equity amid these challenges, Jeremy is focusing on three specific types of investments: 1. Unique investments with unusual pricing or significant built-in equity upfront. 2. Investments in which asset price decreases aren’t a concern. 3. Short-term, low-risk investments instead of keeping money in cash due to inflation. Examples of such investments include multifamily properties with tax abatement, depreciating assets like ATMs, and US Treasuries. In conclusion, Jeremy stressed the importance of not being stagnant in these uncertain times. Despite the potential risks, investors should continue to deploy their capital to avoid falling behind due to inflation. He encouraged each of us to devise an investment strategy that fits not only the current investing environment but also our personal comfort level. If you want to watch the replay of the webinar, please subscribe to our premium content.

Protecting Your Equity During Uncertain Times – Strategies For Today’s Challenging Investing Environment! Part-2

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Today, Michael Tortorich will be joining our weekly show.

Michael Tortorich has a Bachelor of Business Administration and an MBA from the University of Texas at Austin McCombs School of Business. He has 10-plus years of corporate finance experience and most importantly is a passionate believer in promoting financial literacy. The content in this book was originally designed as a financial education course for his two children, but after completion, he decided to turn the material into a book that anyone could benefit from.