I’ve been asked a lot lately if it is a good time to invest in commercial multifamily properties.
My quick answer is a big YES. Let me break it down a bit more.
I’m all about sticking to the facts and steering clear of media hype. Why? Because the media tends to play catch-up with what’s really happening in the market. My mentor once dropped some wisdom on me, saying, “When CNN says buy real estate, it’s time to sell, and vice versa.” So, take the advice of people in the real estate game, not reporters who’ve never invested.
Listen to those who’ve been around the block, who’ve not only bought but also sold properties. Recently, I heard Dean Adler, managing a whopping $25 billion real estate fund, spill some golden nuggets. According to him, rentals are the way to go in today’s economy.
Thinking back to the 2008-2009 cycle, there are some similarities between then and now. Sure, it’s not identical, in 2008 the crisis was driven by residential properties and this one is more about commercial properties. Now, here’s a shocker: around $1.5 trillion in commercial debt is going to mature between mid-2023 to the end of 2025. Most of this debt was snagged at super low rates. When these loans come due, property owners have two choices: either pump in some cash to cut down the loan amount and renew at a friendlier figure or hand the property back to the lenders. I know folks personally going for each one of these options.
We all know what goes down when lenders take the reins—property prices nosedive. But guess what? That creates a golden chance for savvy investors to snag properties at a steal. As an investor, you’ve got to keep your eyes open for these opportunities and be ready to pounce.
I’m calling it now—some serious wealth is going to be made in the next couple of years. Did you miss out on the last cycle? Don’t let lightning strike twice. Hit me up, and let’s chat about how you can get in on the action – info@kerra-investments.com