Multifamily and commercial real estate has been the butt of the joke over the past year. As mortgage rates started to rise, commercial real estate investors were hit hard, as profits became pitiful and asking prices laughable. For months, the media has been predicting a commercial real estate crash, citing a wave of mortgages coming due with sellers who won’t be able to pay the high price of a refinance. And while these fundamentals aren’t wrong, a mortgage meltdown might not be a reality.
So instead of speculating, we brought on Richard Hill, Head of Real Estate Strategy & Research at Cohen & Steers, to differentiate the facts from fiction. Richard knows that loans are coming due, and buyers with low-rate adjustable mortgages may be in trouble. But that’s not the whole story, and some parts of commercial real estate could be primed for massive growth that residential investors have no clue about. The opportunities could be flowing soon for those who know where to look.
In this episode, Richard will talk about the true risk of commercial real estate mortgages, which sectors are in the most trouble, which are being blown out of proportion, and how much investors can expect prices to drop. Plus, Richard gives his take on the three best times to invest in a quickly changing market like we’re seeing today.
In This Episode We Cover
The commercial real estate “crash” and how far prices will actually fall
Commercial debt coming due and which sectors have the highest risk
Bank failures and what’s causing big banks to dump their commercial loans
The future of financing for commercial investments and whether funding will become a challenge
Mortgage exposure and why demanding LTV (loan-to-value) requirements make for better investments
The astronomical tax implications of defaulting on your mortgage (DON’T Do this)
When to buy and which industries are primed for growth in the next few years
And So Much More!
Links from the Show
Find an Agent
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BiggerPockets Forums
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On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Dave's BiggerPockets Profile
Dave's Instagram
James' BiggerPockets Profile
James' Instagram
Commercial Real Estate Could Crash, But Are Everyday Investors Impacted?
The BIG Economic Implications of US Bank Failures
Get Real Estate Market Insights from Cohen & Steers
Links from the Show
Richard's LinkedIn
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-104
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