On The Market

181: Huge Opportunity for New Multifamily Investors As Prices Set to Drop w/Brian Burke and Matt Faircloth

Jan 22, 2024

Expert multifamily investors Brian Burke and Matt Faircloth discuss the current state of the multifamily market. They explore the challenges of finding profitable deals, the potential drop in prices, and the opportunities for investors to buy at a discount. They also share strategies for entering the market, investing in cash flowing assets, and their plans for 2024.

43:26

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Episode guests

Matt Faircloth

Brian Burke

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Quick takeaways

Multifamily prices are set to drop as debt comes due, expenses rise, and owners feel desperate.

Inexperienced and overconfident investors will be pushed out of the market, creating opportunities for price cuts.

Deep dives

State of Multifamily Market in 2024

The podcast discusses the current state of the multifamily market in 2024. The residential market remained somewhat flat in 2023, but the multifamily market experienced a decrease in prices, ranging from 10% to 20% across different regions. This presents both risks and opportunities for multifamily investors in 2024. While there may be risks associated with decreased prices and increased costs of borrowing, there is also potential for investors to capitalize on discounted properties. The episode features Matt Faircloth and Brian Burke, who share their perspectives on the market and offer insights on potential strategies and niches that could be beneficial for investors.

Introduction

2min

State of the Multifamily Market in 2023

6min

Challenges in Penciling Deals and Fundrise's Buying Spree

3min

Real Estate Market Slowdown and Factors Contributing to Lack of Capital

18min

Differing Views on the Future of the Market

6min

Strategies for Entering the Multifamily Market and Investing in Cash Flowing Assets

6min

Plans for 2024 and Focus on Multifamily Market

3min

Multifamily real estate has crashed, but we’re not at the bottom yet. With more debt coming due, expenses rising, incomes falling, and owners feeling desperate, there’s only so much longer that these high multifamily prices can last. Over the past year, expert multifamily investors like Brian Burke and Matt Faircloth have been sitting and waiting for a worthwhile deal to pop up, but after analyzing hundreds of properties, NOTHING would work. How bad IS the multifamily market right now?

Brian and Matt are back on the podcast to give their take on the multifamily real estate market. Brian sees a “day of reckoning” coming for multifamily owners as low-interest debt comes due, banks get desperate to be paid, and investors run out of patience. On the other hand, Matt is a bit more optimistic but still thinks price cuts are coming as inexperienced and overconfident investors get pushed out of the market. So, how does this information help you build wealth?

In this episode, Brian and Matt share the state of the 2024 multifamily market, explain exactly what they’ve been doing to find deals, and give their strategy for THIS year that you can copy to scoop up real estate deals at a steep discount. Wealth is built in the bad markets, so don’t skip out on this one!

In This Episode We Cover:

The state of multifamily real estate in 2024 and how low prices could go

A “day of reckoning” coming for inexperienced/overleveraged multifamily owners

Whether or not we’ve reached the bottom for multifamily price drops

What rookie real estate investors should do NOW to take advantage of this down market

Rising mortgage rates and how increased costs have KILLED many multifamily deals

Exactly what Brian and Matt are investing in during 2024 to make money no matter how the market moves

And So Much More!

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