Why “Distress Deals” Are Mostly Garbage | NMHC Reality Check

In this episode of the LSCRE Podcast, Craig McGrouther and Rob Beardsley break down the real takeaways from NMHC and explain why many so-called “distressed multifamily deals” are actually uninvestable.With record supply in markets like Dallas, Austin, Phoenix, and San Antonio, realism is finally hitting the multifamily market. Lenders are taking back properties — but that doesn’t mean they’re good buys.We cover:Why lender-owned ≠ good dealHow “value-add” is often just disguised riskWhy AI underwriting misses the nuance that mattersThe 4 pillars of every multifamily deal: location, price, debt, managementWhy cash flow coverage matters more than leverageHow disciplined operators win cycles — and survive downturnsIf you’re a passive investor, fund manager, or multifamily operator, this episode cuts through the noise and explains what actually matters in today’s market.Smart capital isn’t chasing hype — it’s buying stability.Learn more about LSCRE:www.lscre.com