Episode #147

The multifamily real estate market went from bad to worse. Interest rates are still at record highs, cap rates have somehow stayed compressed, rent growth looks bleak at best, and sellers refuse to budge on their prices. As a result, inexperienced operators are picking up so-called “deals” to shop around to their investors—and they could be walking into a massive financial trap without even knowing it.

If you want one hundred and one reasons NOT to buy multifamily right now, Brian Burke is here to help. But, if you want a counteracting force of optimism as to why you should pursue multifamily properties, Matt Faircloth can balance out this debate. These investors have owned and managed THOUSANDS of apartment units, but NEITHER of them has bought in over a year. Brian even went as far as selling most of his portfolio right before the commercial crash, a move many thought was far from wise at the time.

These two time-tested multifamily experts come on today to talk about the commercial real estate crash, the “chaos” that could ensue over the next year, why inexperienced syndicators are about to bite the dust, and why multifamily investing may not be the move to make in 2023. Think this is just a bunch of scare tactics to keep you away from good deals? Tune in to be surprised.

~~~~
Join BiggerPockets for FREE 👇
https://www.biggerpockets.com/signup?utm_source=owned_media
~~~~
Listen to The “On The Market” Podcast Wherever You Listen to Podcasts:
BiggerPockets: https://www.biggerpockets.com/podcasts/on-the-market?utm_source=owned_media
Apple Podcasts: https://podcasts.apple.com/us/podcast/on-the-market/id1615086704
Spotify: https://open.spotify.com/show/2NlzZ9NtHtZ2uBuaDNoGzY
~~~~
Join the Future of Real Estate Investing with Fundrise:
https://www.fundrise.com/bpmarket
~~~~
Find an Investor-Friendly Agent in Your Area:
http://biggerpockets.com/agentmatch
~~~~
Find Investor-Friendly Lenders:
http://biggerpockets.com/findlenders
~~~~
Meet Brian and Matt at BPCon!
https://web.cvent.com/event/71fc762e-0fc1-4fd3-a893-49abee96ce1e/summary?RefId=2022%20Attendees&rt=eE2-LB9w8ki4fSBHG_I3eA
~~~~
Sign Up for the BiggerPockets Multifamily Bootcamp:
https://www.biggerpockets.com/blog/real-estate-investing-bootcamps?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Grab the Books Mentioned in Today’s Episode:
Raising Private Capital: https://store.biggerpockets.com/products/raising-private-capital-revised-edition?utm_source=owned_media
The Hands-Off Investor: https://store.biggerpockets.com/products/the-hands-off-investor?utm_source=owned_media
~~~~
The Multifamily “Bomb” is About to Blow, Here’s What You Need to Know:
https://www.biggerpockets.com/blog/on-the-market-71?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Connect with Brian:
BiggerPockets: https://www.biggerpockets.com/users/cirrusav8or?utm_source=youtube&utm_medium=description&utm_campaign=none
Website: https://praxcap.com/
Instagram: @investorbrianburke or https://www.instagram.com/investorbrianburke/
~~~~
Connect with Matt:
BiggerPockets: https://www.biggerpockets.com/users/mfaircloth?utm_source=youtube&utm_medium=description&utm_campaign=none
Website: https://derosagroup.com/
Instagram: @themattfaircloth or https://www.instagram.com/themattfaircloth/
~~~~
Connect with Dave and Our Panel of Expert Guests:
Dave Meyer: https://www.biggerpockets.com/users/davem27?utm_source=youtube&utm_medium=description&utm_campaign=none
Henry Washington: https://www.biggerpockets.com/users/henryw22?utm_source=youtube&utm_medium=description&utm_campaign=none
James Dainard: https://www.biggerpockets.com/users/jdainflips?utm_source=youtube&utm_medium=description&utm_campaign=none
Kathy Fettke: https://www.biggerpockets.com/users/kfettke?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Follow Dave and Our Guests on Instagram:
Dave: @thedatadeli or https://www.instagram.com/thedatadeli/
Henry: @thehenrywashington or https://www.instagram.com/thehenrywashington/
James: @jdainflips or https://www.instagram.com/jdainflips/
Kathy: @kathyfettke or https://www.instagram.com/kathyfettke/
BiggerPockets: @biggerpockets or https://www.instagram.com/biggerpockets/

Show notes at: https://www.biggerpockets.com/blog/on-the-market-147?utm_source=youtube&utm_medium=description&utm_campaign=none


00:00 Intro

02:10 Meet the Multifamily Opponents

05:51 Have Sellers Lost Their Minds?

16:49 Cost Segregation Gone Wrong

18:49 The ONLY Way to Buy Multifamily in 2023

26:59 Opportunities to Buy?

33:22 A Needle in the Housing Market Haystack

44:04 Interest Rates and Commercial Debt

52:27 Connect with Brian and Matt!

54:32 What Investors Can Do NOW