Directed IRA Podcast Banks Are Pushing Distressed Assets—Here’s What It Means for You! with Jamison Manwaring.
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Mar 10, 2025 Jamison Manwaring, co-founder of Neighborhood Ventures, shares insights on a unique foreclosure deal his company secured at a significant discount. With the multifamily sector experiencing rising interest rates, he discusses how they plan to optimize the property’s value by increasing rents and improving management. Jamison also highlights the trend of banks pushing distressed assets and the impact of expiring rate caps. This conversation reveals the opportunities for savvy investors looking to navigate the current real estate landscape.
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Multifamily Demand
- Multifamily real estate stands out because demand remains high, unlike the office sector.
- High housing costs make renting more attractive, driving multifamily demand.
Interest Rate Impact
- The rapid interest rate increase from near zero to 5% in 18 months significantly impacted real estate deals with fixed income streams.
- Rising debt costs make some deals unprofitable, especially for those with floating-rate debt.
Arcadia Acquisition
- Neighborhood Ventures acquired a 70-unit multifamily property in Arcadia, Phoenix, through a foreclosure process.
- Purchased for $11 million, significantly below the original price of $18.25 million, due to the current market conditions.