@WallStreetApes Curious can’t all business owners do the exact same thing? Borrow against the assets they have? There is still risk and downside to doing this even if you are a billionaire. Have to pay interest and at some point loan will be due.
@Joe_Stampone Once the Fed started increasing Rates in 2022, no MF development penciled. Construction & operating costs have increased significantly and Rents have been flat, if not decreased (in certain markets). To develop since ‘22, underwriting includes lots of aggressive assumptions.
@FCNightingale If this deal started in 2022, I would see cost inflation having a major impact. However breaking ground in 2025 and blaming cost increases is absurd. I’d assume Pearlmark has some say in next steps.
@RandallHouseRE I agree 💯…including our own deals. However it’s a little odd that they are having to offer the largest concession on the smallest units. Wondering if they missed the target demographic or missed on unit mix…???
@JeffJacksonNC Rents stopped growing in 2022. Yet, since 2022, our Property Taxes, Insurance and other Operating costs are up 50-100%. There are about 100 things the government could be doing to make housing (including Rents) more affordable and going after RealPage is NOT one of them.
@jayparsons Institutional investors (per Grok) represent between 0.5–0.6% of the single family rental market. This bipartisan policy will have ZERO impact on home prices & rents. Increasing supply (numerous ways to do this) is the most effective way to lower home prices & lower rents.
@TannerBuilds Very nice. First floor (garage) ceiling heights don’t look as tall as I would think is ideal for a garage. From what I have heard and read garage doors should be 14’ tall in order to ensure Campers, Boats, etc can fit.
@MarioNawfal Better sign as long term of a lease you can get as later this year Rents will rise and will continue to rise (5-10% annually) for the next 5+ years.
@multifamilyman_ Rent growth is offset by rising Costs (construction and operations)…. Costs up in the last 2-3 years way more than Rents…the days of underwriting Costs going up 3% a year seem to be over.
@jayparsons My opinion: these historically low starts are vastly overstated and actual market rate institutional
sized (200 units+) starts are actually well below what is being reported.
@aryal1994 When has a Class A renter (Multifamily) ever moved down market to a Class B property? Building materials (via WSJ article) are exempt from Tariffs. MF will actually hold up ok during a recession as folks that traditionally would buy a home are more likely to rent.
@bespokeinvest Should compare to when he won the election not Day 1 of his presidency as the market moved once he was confirmed. The numbers likely still show USA is underperforming but that would be a more accurate analysis.