MB283: The State of Multifamily

Is now really a good time to get started in multifamily? COVID put real estate on a bit of a roller coaster ride. The market cooled for a bit but then came back even hotter! So, is it too hot now? What should we be thinking about as we decide whether to invest now or wait until later? On this solo episode of Financial Freedom with Real Estate Investing, I explain why there will never be a PERFECT time to get into multifamily and discuss how we adjust our tactics with ups and down in the market. I offer insight on why real estate prices are going up right now and describe what soaring construction costs, ongoing demand for affordable housing and rising inflation means for multifamily. Listen in to understand the relationship between rising rents and property values—and find out why investing in REAL assets is the best thing you can do right now! Key Takeaways My insight on why now is the right time to get into multifamily There will never be a PERFECT time to get started If fundamentals are strong, stick with strategy but adjust tactics Don’t ask, ‘Should I get started?’ but ‘How can I get started?’ Why real estate prices are going up right now Low interest rates Increased demand Rising inflation The impact of soaring construction costs Median price of house up from $286K to $326K Affordable housing shortage worse than ever What the current inflationary environment means for multifamily Rising incomes and rents (in growing markets) Increasing NOI means value of building goes up The case for investing in multifamily Ongoing high demand and limited supply Rising incomes + inflation = higher rents High rents + low interest rates = higher prices Why it’s a good idea to invest in real assets right now Potential devaluation of dollar Hold things with intrinsic value Resources Explore Michael’s Deal Maker Certification Training Learn More About Michael’s Mentoring Program Register for Michael’s Platform Builders Masterclass Join the Nighthawk Equity Investor Club Get Michael’s Blueprint to Your First Multifamily Deal ‘Construction Costs Are Skyrocketing—Should You Build a House?’ in Forbes ‘The Housing Shortage Is Worse Than Ever—And Will Take a Decade of Record Construction to Fix, Reports Say’ in Forbes ‘Skyrocketing Steel, Lumber Costs Threaten to Slow Construction Jobs’ in Construction Dive ‘Soaring Lumber Prices Add $36,000 to the Cost of a New Home and a Fierce Land Grab Is Only Making It Worse’ on CNBC ‘The Housing Boom Could Be Losing Steam’ on CNN Business ‘Online Searches About Relocations Soar; Lack of Homes for Sale Driving Interest’ in The Washington Post ‘The Housing Shortage—Special Report’ in REALTOR Magazine ‘Once-in-a-Generation Response Needed to Address Housing Supply Crisis’ on the National Association of REALTORS Website ‘Apartment Rents Reach New High in June’ in GlobeSt ‘More Americans Are Leaving Cities, But Don’t Call It an Urban Exodus’ in Bloomberg Podcast Show Notes  Michael’s Website  Michael on Facebook  Michael on Instagram  Michael on YouTube  Apartment Investor Network Facebook Group