2023 Multifamily Debt Market Update - Anton Mattli

The conversation is about the current state of the debt market and real estate investing. The speakers note that in 2021, low-interest rates and easily available credit made it a great time to finance properties, including multifamily homes. However, the problem now is that borrowers who took out bridge loans for value-add properties are struggling to refinance those loans, as they are not able to get the same loan proceeds for apartment loans. There are opportunities for buyers to partner with owners who have great loans outstanding, and solutions like financing or replacement bridge loans can be helpful. Interest rate caps have become a common feature of loans, but those who didn't require interest rate caps to be bought are now facing difficulties as the cost of buying them is up to ten times as much. Some lenders already required interest rate caps to be extended much quicker than anticipated, which has resulted in lenders losing all of their money in some instances. The conversation also touches on the distressed deals and how the current situation has resulted in sponsors being willing to take a loss.


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https://trendinginrealestate.com/multifamily-investing/grant-cardone-on-multifamily-investing-and-why-you-should-never-buy-a-house-bp-podcast-250