061: Multifamily Market Trends 2024 with Michael Episcope

Jul 2, 2024

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Episode 61: Multifamily Market Trends 2024 with Michael Episcope

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Episode: Insights into the Multifamily Real Estate Market with Michael Episcope

Guest: Michael Episcope

Co-founder and Co-CEO of Origin Investments (2007)
Role: Oversees investor relations and capital raising; co-chairs the investment committee
Background:
Formerly a top trader, recognized twice by Trader Monthly Magazine as one of the top 100 traders in the world
30+ years of investment and risk management experience
Education:
Undergraduate and Master’s degrees from DePaul University

Connect with Michael

Episode Overview

In this episode of Managing Tech Millions, host Christopher Nelson chats with Michael Episcope about the multifamily real estate market.

Key Takeaways:

Deep Dive into Multifamily Real Estate: Insights for seasoned and novice investors.
Importance of Risk Management: Strategies for effective real estate investment.
Due Diligence: Understanding critical assessment criteria.
Adaptation to Market Conditions: Navigating changes in the real estate landscape.

Why Choose Multifamily Real Estate?

Discover the criteria that led Michael to select multifamily real estate as a key wealth-building vehicle.

In this episode, we talk about:

Transition to Real Estate:
Michael and his partner David transitioned from trading to real estate to protect and grow their wealth.
They were motivated by the stability and simplicity of real estate, influenced by Michael's early exposure through his grandfather.
Investment Strategy:
Origin Investments focuses on multifamily real estate, particularly in high-growth markets.
They employ a barbell strategy, balancing preferred equity and ground-up development to manage risk and protect capital.
Market Insights:
Michael shared insights on the current state of the multifamily market, noting oversupply in Sunbelt markets like Austin.
He emphasized the importance of buying below replacement costs and the potential opportunities in distressed assets.
Risk Management:
A significant part of their strategy involves understanding and mitigating risks, especially in volatile markets.
Michael highlighted the importance of having a strong balance sheet and being cautious with leverage.
Advice for Investors:
Michael advised investors to look beyond headlines and perform their own due diligence.
He stressed the importance of trusting and verifying information from sponsors and being cautious of diversification across too many managers.
Current Opportunities:
The current market presents opportunities for contrarian investors who can see beyond short-term distress.
Michael discussed the importance of understanding the motivations behind investment managers' decisions and being wary of strategy drift.

Episode Timeline:

[00:01:37] Choosing real estate for wealth.
[00:03:52] Real estate wealth and risk.
[00:08:10] Distressed capital structures.
[00:10:57] Multifamily market oversupply and demand.
[00:13:25] Investing in lifestyle cities.
[00:17:06] Real estate investment during recession.
[00:20:44] Looking beyond the headlines.
[00:24:39] Throwing money into a hole.
[00:27:23] Due diligence and verification.
[00:29:38] Diversification in Real Estate Investing.
[00:33:06] Strategy drift in investments.
[00:36:15] Managing diverse product mix.

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