The Multifamily Bomb is About to Blow: Investors Could Get Crushed

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.

00:00 Intro
02:05 The Multifamily "Bomb" Could Blow
06:27 Too Much Risk in the Market
11:40 The Cracks Start to Form
16:29 A Lack of Liquidity?
19:17 Fundamentals to Follow
23:11 Multifamily Price Predictions
31:06 What's the Deal with New Development?
37:24 What Should Investors Do in 2023?
43:59 Connect with Brian!
45:28 Stay Vigilant!

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Episode 71

Show notes at: https://www.biggerpockets.com/blog/on-the-market-71?utm_source=youtube&utm_medium=description&utm_campaign=none

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