Will REO-rentals Really Compete With Apartment Building Investments?
Filed under: Multifamily Investments, REOs to Rentals- Single Family, The Economy and Current Affairs
Greg Willett, VP of research over at Real Page wrote a nice piece on that which covers it nicely; take it away Greg:
Thanks to one sentence uttered by Warren Buffett and some major overplay by the media, single-family rentals are a hot investment choice now. Thus, the analysts at MPF Research are fielding a constant stream of inquiries about whether the bulk sale of bank-owned single-family homes to investors who will operate them as rentals will impact the apartment sector.
Our take is that Read more
Clash of housing bottom fairy tales: Big Bad Wolves v. Robin Hood Investors.
Filed under: Multifamily Investments, The Economy and Current Affairs
My friend and fellow real estate investor Mei was asking about competition for single family REOs from big institutional players buying them at the courthouse as in the Bloomberg article here. The article profiles Waypoint, a Southern California real estate investing outfit that has developed some great technology to facilitate buying and leasing REOs. Check out Waypoint’s website, it’s the best example I’ve seen of the lease/option, credit repair, rent-to-own strategy for real estate investors.
It is a great question and one that I’d been wondering about too. Just so happens I was meeting with one of my private equity clients last week and we had a long conversation about that very subject. My client is the real estate/mortgage specialist at a 50B firm and they’ve been trying to crack this market profitably for about a year. Here’s the bottom line: Private equity needs to earn Read more
Portland OR Q1 Apartment Building Investments Now Posted.
Here are some interesting transaction statistics for 1st Quarter apartment building investment transactions:
- Average price per unit was up 11% from Q1 2011
- 6.86% was the average cap rate, vs. 7.07% in 2011
- 77% of properties sold had between 5-50 units
Click on the image to see the list of Q1 apartment building investment sales in Portland:
For more on PDX apartment building investment see City Rents Rise As Buyers Wait Out Housing Bust from Joseph Bernard Investment Real Estate.
Why now is the right time for CRE and Apartment Building Investment. Video via Tom Barrack at Colony Capital
Filed under: Apartment Building Investment Cycle, Commercial Real Estate, Multifamily Investments, The Economy and Current Affairs
Tom is one of my mentors and I follow what he’s doing closely to learn from a pro in apartment building investing. Here’s a video 3fer with Tom on why now is the time, if you have any contrarian testosterone as he puts it (in other words you are a true value investor). See also my notes below with the exec sum in bold.
1st Video:
Tom Barrack on CNBC last week
Stock markets rise and fall, but investors with a long-term view will make money, real estate investor Tom Barrack of Colony Capital is a “slow money guy”. Barrack has $27 billion invested in real estate and $45 billion in assets around the world.
Overall in the US
Where I think we are is actually a great Read more
Is the Dallas/Fort Worth Apartment Building Investment Cycle Peaking or just taking a breather?
Filed under: Apartment Building Investment Cycle, Multifamily Investments
In their RECON report The Real Estate Center @ Texas A&M quotes The Dallas Morning News on apartment building investment in the DFW market:
“Apartment leasing in Dallas-Fort Worth dipped for the first time in over two years.
Net leases fell by 270 during first quarter 2012, with most of the declines occurring in the northern suburbs.
Greg Willett of apartment analyst MPF Research believes the slight dip is nothing to worry about.
“I don’t think one quarter of slight resident loss should be viewed as a big deal, especially when demand in first quarter usually is pretty mild anyway,” he said. “The job numbers still look good, and a comeback for the for-sale housing sector actually could drive them higher.”
The North Texas area has added about Read more
Pathfinder Buys REO Multifamily Complex Near Seattle for $5.1M Via MHN Online. 78 units @ $65.4k+/unit
Filed under: Commercial Real Estate, Multifamily Investments
San Diego-based Pathfinder Partners LLC makes Apartment Building Investment in Seattle area.
San Diego-based Pathfinder Partners LLC has acquired the View at Redondo, a 78-unit apartment property in Federal Way, south of Seattle. The apartment complex, built on a …. [Cut to the chase]
Key Concept:
“We believe there are opportunities throughout the major markets in the western United States to invest capital in high-quality projects with distressed or fatigued ownership that will result in significant returns,” Lorne Polger, senior managing director of Pathfinder Partners, tells MHN. “To that end, Pathfinder focuses on smaller apartment building investment, sized below the radar of the largest institutional buyers.”
The company’s strategy, Polger adds, is to buy the loan on a small property that needs finishing, has a large vacancy, or is beset by other issues. “These are typically transactions that need to be concluded very quickly, on an all-cash basis,” he says. “We have a track record of closing this type of deal in 15 to 20 days, and frequently get the call when a financial institution is seeking to conclude a challenging deal quickly.”
A very good strategy indeed.
Seattle Multifamily Vacancy at 4.2% Says Dupre + Scott, average rents over $1,500 too.
Filed under: Commercial Real Estate, Multifamily Design & Development, Multifamily Investments, The Economy and Current Affairs
For more on the Seattle area apartment building investment climate see the Seattle Times article here: Apartment rents likely to keep rising through 2012
Hat tip: Paul McFadden
Getting Inside the Head of Today’s Online Renter, multifamily report now available.
Filed under: Commercial Real Estate, Multifamily Design & Development, Multifamily Investments
From my friend Heather over at Behind The Leasing Desk Consulting: “fact: I ♥ Satisfacts! Check out their new report on the mind of the online renter for some great insight into what your potential residents are thinking.”
From Satisfacts: “We asked, and now it’s ready for YOU. Getting Inside the Head of Today’s Online Renter is the most comprehensive analysis ever conducted in the industry on the impact of technology and social media on apartment marketing and operations.” Get the report here
Canadian office, industrial and retail Real Etate on fire too. Not just multifamily.
see the CNW article here: Strong performance in Canadian real estate continues
US Multifamily expected to reach 95% occupancy in 2012 says AxioMetrics President
Filed under: Multifamily Investments, The Economy and Current Affairs
See the article here: Experts Say U.S. Apartment Market Continues to Roll
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