BiggerPockets Real Estate Podcast

The Opportunity is Coming in Commercial Real Estate (How to Take Advantage)

Jan 22, 2025

Jim Pfeifer and Paul Shannon, co-hosts of the Passive Pockets podcast, are seasoned commercial real estate investors specializing in syndications. They discuss how the commercial real estate crash may be nearing its end, presenting a prime time for savvy investors. With many inexperienced syndicators exiting, seasoned veterans see opportunities in multifamily properties. They guide listeners on how to invest passively without the headaches of landlord duties, emphasizing the importance of choosing the right operators for secure investments.

40:19

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Episode guests

Paul Shannon

Jim Pfeifer

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Episode notes

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Quick takeaways

The current commercial real estate downturn presents strategic buying opportunities for investors, particularly with the stabilization expected around 2025.

Passive investing through syndications allows individuals to leverage the expertise of seasoned operators while avoiding the complexities of direct property management.

Deep dives

Current State of Commercial Real Estate

The commercial real estate market has experienced significant challenges, particularly since the pandemic, which has seen a decline in asset values across various sectors, including multifamily properties. Factors such as rising interest rates, increased costs of property taxes, and expenses have led to financial distress for many investors who acquired properties under less favorable conditions. This situation has created a 'debt maturity wall' where numerous deals are nearing refinancing or selling, but they are not worth what they were previously. Despite the current downturn, experts suggest that there may be potential buying opportunities on the horizon, particularly for investors who are strategic about their entry points.

Intro

3min

Navigating Multifamily Market Challenges

6min

Navigating Opportunities in Commercial Real Estate Investment

5min

Navigating the Shifts in Commercial Real Estate Investment

4min

Navigating Real Estate Syndication

9min

Evaluating Operators in Real Estate

7min

Maximizing Passive Income Through Strategic Real Estate Investments

5min

The multifamily and commercial real estate crash seems to be nearing its end, which means some incredible buying opportunities are on the way. Big apartment owners have been decimated after their occupancy rates dropped, interest rates shot up, and loans got called due. But when prices fall and the masses turn away from an asset, it’s usually time to buy, and 2025 could be one of those times for commercial real estate.

But YOU don’t have to be the one to go out and find the deal yourself, do all the renovations, and deal with tenants—you can invest all while someone else does it for you. That’s exactly what today’s guests, Jim Pfeifer and Paul Shannon from the PassivePockets podcast, are on to talk about. They see coming opportunities to invest in multifamily real estate deals passively and will teach you exactly how to do it.

Both Jim and Paul previously owned rental properties but moved over to real estate syndications, a passive real estate investment, as they grew. Now, they can have someone else do all the work for them while they reap the benefits. The best part? 2025 is looking like an opportune time to get in on investments like these, as many of the inexperienced syndicators have fled the market. Still, the veterans remain, ready to buy underpriced assets and pass the profits on to you!

In This Episode We Cover:

Why the historic commercial real estate crash could be close to over

Real estate syndication investing 101 and how to invest without the stress of landlording

Better, safer multifamily real estate deals that are coming to the market

How to analyze a passive real estate investment AND the syndicator running it

What to ask any syndicator before you invest in their deal (this is crucial)

And So Much More!

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