The Rent Roll with Jay Parsons EP#20 Ivan Barratt | NMHC Buzz & Midwest Love
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Feb 6, 2025 Ivan Barratt, Founder and CEO of BAM Companies, shares insights from the multifamily investment world. He discusses the Midwest's resurgence as a hot spot for investors, detailing the unique opportunities this region presents. Barratt highlights emerging markets like Indianapolis and Columbus, emphasizing how affordability and stability are attracting capital. He also addresses the challenges of raising funds in this competitive landscape and reflects on how new investors are reshaping the market dynamics. Plus, a fun detour into sports trade discussions adds a lively twist!
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NMHC Mood
- The mood at the NMHC Annual Meeting was described as both somber and optimistic due to higher rates.
- There's confidence in the market's improvement, but skittishness remains about higher rates impacting deals.
Deal Flow Stagnation
- Deal flow is stagnant due to high rates, creating a math problem for buyers unless prices fall, requiring cheaper debt.
- Sellers remain firm on prices, especially as buyers seek lower cost of capital options for deals to pencil out.
Investment Strategy
- Target newer assets bought below replacement cost.
- Be cautious, as execution can be difficult due to limited availability and small discounts in higher-risk markets.