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71: The Multifamily “Bomb” is About to Blow, Here’s What You Need to Know w/Brian Burke

71: The Multifamily “Bomb” is About to Blow, Here’s What You Need to Know w/Brian Burke

FromOn The Market


71: The Multifamily “Bomb” is About to Blow, Here’s What You Need to Know w/Brian Burke

FromOn The Market

ratings:
Length:
53 minutes
Released:
Jan 20, 2023
Format:
Podcast episode

Description

Multifamily real estate is by no means an easy asset class to buy into. What most people mistook as simple investments in 2020 are now turning out to be cash-hemorrhaging, high-interest, soon-to-go-bust investments. Everyone and their grandma was trying to buy the biggest apartment building they could, bidding well over asking without checking the fundamentals of the deal. Now, these buyers have to reap what they sowed by selling a solid asset at a low price or falling into foreclosure.
But how did we get here? Wasn’t multifamily the hottest asset class of the past two years? This was supposed to be a foolproof way to build wealth, so what happened? Brian Burke knows, and that’s why he sat patiently on the sidelines, watching inexperienced syndicators bite off more than they could chew, refusing to listen to long-term investors. Brian has successfully predicted multiple crashes, not because he has a crystal ball, but because he knows when to take profits. He smelled something fishy happening in the multifamily space in 2019, and this same feeling saved him in 2022.
So, what’s next for the multifamily housing market? Are the nation’s multifamily investments set to crash and burn? Not quite, but this could be the opportunity of a lifetime for the new investors looking for their next deal. But when should you hop in, start analyzing deals, and make bids? Stick around for this multifamily deep dive, as Brian will give you everything you need to know about the multifamily real estate market.
In This Episode We Cover
The multifamily “bomb” that’s about to explode and how multifamily became so overleveraged
Risky debt and how new investors failed to think ahead with bridge loans and adjustable-rate financing
The multifamily foreclosure crisis and how many investors could be forced into forbearance
Key fundamentals to follow if you want to invest in multifamily in 2023 
New construction and whether the high risk is worth the higher reward
Advice for both active and passive multifamily investors who want to avoid getting burnt in 2023
And So Much More!
Links from the Show
Find an Investor-Friendly Real Estate Agent
BiggerPockets Forums
BiggerPockets Agent
BiggerPockets Bootcamps
Join BiggerPockets for FREE
On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Dave’s BiggerPockets Profile
Dave’s Instagram
Kathy's BiggerPockets Profile
Kathy's Instagram
Read The 2023 State of Real Estate Investing Report
Expert or Amateur? Do You Know Who Your Real Estate Syndicator Is?
Book Mentioned in the Episode
The Hands-Off Investor by Brian Burke
Connect with Brian:
Brian's BiggerPockets Profile
Brian's Instagram
Praxis Capital
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-71
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Released:
Jan 20, 2023
Format:
Podcast episode

Titles in the series (100)

The modern real estate investor doesn’t have time to research every headline and trend. That’s why BiggerPockets' Dave Meyer and his expert panel do it for you. Learn how to invest smarter in today’s economic environment.