Financial Freedom with Real Estate Investing MB283: The State of Multifamily
Is now really a good time to get started in multifamily?
COVID put real estate on a bit of a roller coaster ride. The market cooled for a bit but then came back even hotter!
So, is it too hot now? What should we be thinking about as we decide whether to invest now or wait until later?
On this solo episode of Financial Freedom with Real Estate Investing, I explain why there will never be a PERFECT time to get into multifamily and discuss how we adjust our tactics with ups and down in the market.
I offer insight on why real estate prices are going up right now and describe what soaring construction costs, ongoing demand for affordable housing and rising inflation means for multifamily.
Listen in to understand the relationship between rising rents and property values—and find out why investing in REAL assets is the best thing you can do right now!
Key TakeawaysMy insight on why now is the right time to get into multifamily
- There will never be a PERFECT time to get started
- If fundamentals are strong, stick with strategy but adjust tactics
- Don’t ask, ‘Should I get started?’ but ‘How can I get started?’
Why real estate prices are going up right now
- Low interest rates
- Increased demand
- Rising inflation
The impact of soaring construction costs
- Median price of house up from $286K to $326K
- Affordable housing shortage worse than ever
What the current inflationary environment means for multifamily
- Rising incomes and rents (in growing markets)
- Increasing NOI means value of building goes up
The case for investing in multifamily
- Ongoing high demand and limited supply
- Rising incomes + inflation = higher rents
- High rents + low interest rates = higher prices
Why it’s a good idea to invest in real assets right now
- Potential devaluation of dollar
- Hold things with intrinsic value
Resources
Explore Michael’s Deal Maker Certification Training
Learn More About Michael’s Mentoring Program
Register for Michael’s Platform Builders Masterclass
Join the Nighthawk Equity Investor Club
Get Michael’s Blueprint to Your First Multifamily Deal
‘Construction Costs Are Skyrocketing—Should You Build a House?’ in Forbes
‘Skyrocketing Steel, Lumber Costs Threaten to Slow Construction Jobs’ in Construction Dive
‘The Housing Boom Could Be Losing Steam’ on CNN Business
‘The Housing Shortage—Special Report’ in REALTOR Magazine
‘Apartment Rents Reach New High in June’ in GlobeSt
‘More Americans Are Leaving Cities, But Don’t Call It an Urban Exodus’ in Bloomberg