March 23, 2025

MB464: Is Now the Right Time to Invest?

Show Notes

Are you intrigued by the current state of the real estate market? Curious about how drastic changes over the past two years have impacted multifamily investing?

Join hosts Michael Blank and Garrett Lynch as they dissect the whirlwind shifts in the real estate market, akin to a 7 to 10 year cycle compressed into just two years. Today’s episode tackles the burning question: Is now the right time to dive into multifamily investing or should you hold off for a more stable market?

Michael and Garrett kick off the conversation by discussing the importance of adapting investment strategies in line with market cycles, underscoring that timing the market shouldn’t be the primary focus. They delve into how conservative underwriting can shield investors from making costly mistakes, especially in volatile conditions.

Listen in as the hosts explore what has changed dramatically over the past two years, including interest rates, loan terms, and the risk-adjusted returns that investors should be aware of. They also draw parallels to the 2008 financial crisis, offering insights on how the current environment might mirror opportunities seen in the past.

Key Takeaways

Market Timing vs. Strategy Development
The pitfalls of attempting to time the market
Importance of a strategic approach based on market cycles
Shifts in Risk-Adjusted Returns
Historic low interest rates two years ago versus the current environment
How increased interest rates and lowered leverage affect pricing
Adapting Strategies as Operators
The need for flexible underwriting and deal management
Selling and holding decisions based on market conditions
Multifamily Market Dynamics
Impact of rapid rate hikes and leverage restrictions
The forecast of cap rates and their implications for investors
Strategies for Success
Importance of conservative assumptions in current deals
Leveraging past market experiences to predict future opportunities

In this episode, Michael and Garrett provide valuable insights for both passive investors and those looking to actively engage in multifamily real estate. They encourage listeners to assess their investment strategies, considering both the current environment and future market potential.

For more resources and to engage with the hosts on this topic, visit: thefreedompodcast.com. Tune in to explore whether now is the opportune moment for your next real estate investment!