Multifamily Bloodbath with Andrew Cushman - Episode 13

[@neerajchaudhary1821]

David this is by far the best episode you’ve ever done. Thank you.

[@DavidGreene24]

Yeah?

[@AustinWilson-p8r]

I love ever single episode that Andrew is in. He doesn't speak in extreme jargon like most other folks and is just obviously sensible.

[@Khanh.Nguyen369]

This was comforting to hear Andrew hasn't bought in 2 years. I've been offering the past 3 months and still nothing.

[@scientistguy]

Is that because you’re finding that sellers still expect yesterday’s prices?

[@Khanh.Nguyen369]

@@scientistguy tough to say. Granted I’m not offering full ask and asking for credits. Haha

[@scientistguy]

@@Khanh.Nguyen369 do these properties sell to a higher bidder? Maybe some buyers are still overpaying.

[@southerngirlsociety]

I sure do love the way you think and speak... reminds me of growing up in Polk County, Florida. Straight forward - honest dialogue... not always what you want to hear, but ALWAYS what you NEED to hear. Thank you for keeping it real and not beating around the bush. That helps me so much in the fact that I have no one in my life who knows this stuff. I grew up super poor, was paying for everything (including school sports, personal needs, etc) at 15yrs old, on my own at 16yrs old (to no fault of my own - it's just what life handed me...), and I don't have family or friends I can go to for help with this so thank you for not beating around the bush, for not giving us just enough to get us hooked but not enough to be helpful, and thank you for always keeping it real no matter what you're talking about - that has helped me tremendously, not only in this quest to eventually start investing in real estate, but it's helped me more in my personal life than you'll probably ever know. THANK YOU sooo much for doing what you do and for putting these videos on KZbin - it sure helps those of us who don't have the budget to put into extra resources, education, investor "clubs", books, coaching, etc. Obviously, trying to do this on a low income ($18hr pay rate - in my mid-40's), it's going to take me a bit longer to figure it all out and learn everything I need to learn with it but I'll get there - with your help here on KZbin, I'll make it happen... some way somehow. Thank you for everything David!

[@AdamCranmer]

Great show! Can we request an human-computer Cushman part 2?! The simplicity of the discussion alongside the real talk is what is missing these days. Thank you for sharing! 5 stars on Spotify and like/comment/subscribed here!

[@nicolasvalenzuela6265]

Thanks for bringing Andrew to the show!

[@DavidGreene24]

Always!

[@workplan01]

Hi David, great show again ! Can you do an episode about syndications , specifically, when analyzing syndication deals, what are some of the most important question to ask a sponsor ? I am sure many of your listeners wonder, how to spot an unexperienced sponsor when they show you their "Golden" deal structure and or when you are on a presentation call and they try to push their deal through to you ?

[@FIRE_DrNinjaTurtle]

This was a fabulous episode with a lot of good information. I love your analogy about the boat built for a storm even though the see is calm at the moment. I may have to steal that 🙂

[@DavidGreene24]

It’s yours (just remember to tell people to follow the channel)

[@michellebingham3482]

These episodes are so good you have me wishing I had an infallible memory so I could retain 100% of this nutrient dense content!

[@JOMOPressureWash]

Cap rates took me a couple years to even begin to understand

[@DavidGreene24]

Funny right?

[@Dan.Ko86]

Feel the same way bro. Math messes with me because I buy with leverage.

[@scottkidd1969]

This is a great run through what to look for as an active and passive investor. Whether you are a beginner or a veteran, these tactics are relevant. Keep in mind there are no hard fast rules. We must adjust according to each property. Thank you David Greene and Andrew Cushman for the insights. Really glad you, David Greene have your own podcast where you have the freedom of your own voice, thank you.

[@DavidGreene24]

Thanks scott!

[@scottkidd1969]

@@DavidGreene24 you are welcome, keep being you.

[@stzobery]

David, This was another great episode. This is related to your work, as I am a follower with 8 properties, 10 doors, in 4 different States. Your extensive experience, wisdom and great talent are well noticed and highly appreciated! Keep doing what you do in your new path forward. It is the best out there! Thank you!

[@DavidGreene24]

Thanks!

[@neerajchaudhary1821]

Curious as to how you evaluate, buy, improve, and operate a couple of units in each of the four states. I find myself limiting myself to a single market as I find it easier to buy and manage with just a couple of units.

[@johnnyb33good21]

This was a nice refresher to commercial 5 unit and plus multi-family

[@professionalaesthetics]

BEST real estate show on KZbin and the net

[@DavidGreene24]

THANKS!

[@Michael-qy1jz]

Price declines-> we have only just BEGUN price declines!! Wait till rents drop another 30%, insurance increases, taxes and expenses increase. I have a dozen reasons which get erased by this platform and what went on since 2008 along with our interest rate/inflation cycle that went from 1981 down to 2020 which has now turned up! Most have never, including me with 30 years of residential property ownership, has had to invest in an upward cycle.

[@DavidGreene24]

Agreed. Strangest time I’ve ever seen

[@darrensadana6788]

I will buy when mosr of these idiots go bankrupt . Everyone rode the interest cycle down since 1980 . Dont give money to any syndicate . You do not know their leverage. What if the i terest cycle has turned and 10 yr is going ro go to 6 or 7 percent . All these guys lecturing are bankcrupt .

[@darrensadana6788]

With the US borrowing 1 Trillion , 1000 billion every 90 days to prevent this economy from spiralling into a depression it is possible that the 10 yr revolts against the borrowing and you may see 10 yr at 10 percent in 5 years . Most likely

[@aaronmurphy8796]

My love of 30 year fixed is the biggest hold up i have with getting into 10-20 unit Multis . Some local banks will do a 25 year am 20 year balloon production on that stuff but it’s like 50-100 basis points above dscr rates Wich sucks . But I’m kind of thinking I may have to go that route . Just hate the idea of needing to pay attention to rates year to year

[@corning-fingerlakesrental]

Small credit unions will lock you rate for 5 years and amt 15-20

[@phil1954]

Good video. I know Andrew said he does not see class A / B values going down further and I understand his reasons, but the oversaturation of class A properties in certain areas? I think that will make prices continue to go down. Would love to have him follow up on that in two years.

[@DavidGreene24]

I think over saturation can be a problem in any individual market. Agreed.

[@darrensadana6788]

First rule of investing . Dont give your money to someone else . They dont have pain and will leverage it to maximize their profit. Not to mention you are trusting they are honest

[@onedropontv8863]

Yikes! Peeling the onion is the best way to really get a better understanding how all this stuff works for the average person. Very interesting.

[@Bagley2014]

5 star review!

[@DavidGreene24]

Thanks!

[@natusfreedom472]

Thank for explaining multi-family cap rate , always thought higher , cap rate was always better

[@DavidGreene24]

I think everyone does lol

[@rccpromotions]

Andrew you mentioned price declines are over but what about the lag effect. Some bad money is scrounging up dry powder but eventually the castle runs out of reserves. We saw this in reverse when interest rates dropped. If credit debt catches up to consumers and rent collection struggles increase that's even more pressure. Too much to explain here. Btw I didn't expect the Feds to hike rates like that either and it cost me $600k.

[@rentawr]

A smooth sea never made a skilled sailir. Franklin D. Roosevelt Great show, and i appreciate your point that not all cao rates are equal. I wish more buters understood that.

[@DavidGreene24]

Thanks!

[@askmichaelnow]

Better than bigger pockets

[@micahhillis877]

David. The content isn't matching the video title. I was hoping to hear market workings, details, observations but conversation started with basics of terminology. Just a tip. Love the new show.

[@Amirealestateinvest]

You guys need to get out there and get turnkey multifamily properties as I have

[@ItsRandall22]

I did that for my first multi family. Grabbed a brand new one. Got seller credits and bought down my rate a bit. Cash flowing that way. 1 year warranty so maintenance cost is low for 1st year. Just how trying to figure out tax saving strategies

[@jamestheketoguy]

My goodness. Ive been out of the RE podcast, or i guess in some cases the RE influencer loop, for 7 years. Been catching up the past couple weeks and realize there some musical chair going on in this world as well. I found Brandon, but now he sports a very long beard. Josh Dorkin is nowhere to be found. The new BP host got the boot...sorry to hear David, loving your show, btw. Since RE has come almost full circle, maybe you can reach out to some of the original guests of BP. Im curious about where Dawn from Milwaukee is, i think she partnered with a young guy from LA. He was the first to get me to think about investing out of state and suggested using google maps to drive around neighborhoods. I still do it to this day, but with google earth now. Also the teacher from san diego that got into buying apartments in ohio. Those were the days that i enjoyed the most. I made a lot of connection with people out of state during those days.

[@DavidGreene24]

Wow! Welcome back. You’ve been sleeping in a time capsule

[@darrensadana6788]

Good information though

[@Michael-qy1jz]

Let the PHOOLs catch this falling knife!! All this miss allocation from stimulus is going to unwind and we were already headed into a decent correction and recession until the money printing giasco came in 2020/21 which only extended the cycle and not stopped it. !!

[@Syhbw]

12 month CD rates at 5% = no need to deal with toilets and tenants at same return rate.

[@corning-fingerlakesrental]

Respectfully you are not considering leverage, forced appreciation, inflation, operational improvements, etc.

[@Syhbw]

@@corning-fingerlakesrental depends on investors’ age, ambitions, and changing regulations. CA may pass prop 33 which will restrict how much landlords can charge rent amount including even single families and condos. Rent control already making investors not wanting to invest in apartments. So apartment investment has some risks as political climate is becoming less favorable.

[@corning-fingerlakesrental]

@@Syhbw yes, good points indeed. Always helpful to consider individual risk and discounted cash flow.

[@APerson-zf3rz]

​@@corning-fingerlakesrental skyrocketing expenses, shaky tenant pools, landlord unfriendly politicial enviroments are not worth it if just parking your cash is giving you 5% risk free.

[@darrensadana6788]

I invested in many online platforms giving out loans and everyone of them is in modification since 2023 . This has not even started . They are trying to hold on . 😢

[@darrensadana6788]

Unless 10 yr comes down to 3 percent at minimum a lot of millionaires and even billionaires in real estate who are in 30 percent 70 LTV will be under water . 2027 is when this will end . Its almost following the same cycle as 2008 .

[@wordTwoWise]

🔥

[@adambindar3048]

⭐️⭐️⭐️⭐️⭐️

[@OscarLook-sl4qu]

Andrew was Chemical Engineer. I believe Christian B. of The One Brokerage was a Chemical Engineer. David, is this just coincidence or something you look for when partnering?

[@DavidGreene24]

Maybe they look for ME

[@darrensadana6788]

Wait till the employment picture deterioates after the election

[@darrensadana6788]

Real estate investors better pray for a banking financial crises so the 10 yr goes to zero so they can refinance for the next 5 years

[@ericmartin70287]

Okay, okay, your click bait title realed me in

[@DavidGreene24]

Do you feel the title delivered on the content

[@noahpalomino3064]

David, hang in there you tough son of a bitch! You’ll get through it hoss

[@maxalto]

David, I can’t think of another episode where the title was more misleading than this one. Andrew hardly mentioned anything specific as to the blood bath, speaking in brush strokes which is widely known at this point. What a disappointing click bait!

[@legacyopp9318]

You have many times given the impression that you are all about equity and cash flow was just to get you by. Then get 10 properties and take 100k out each property after 10 years. Although you're different, I'd say stick to your tactics.

[@DavidGreene24]

I’m not sure I believe that. In THIS market, in today’s economy, that strategy works. I don’t have any one strategy I stick to. I adapt as the economy changes. In multi family, you have to increase cash flow in order to increase equity

[@kellyrachel35]

🤓

[@tarialys4601]

Dave, i know you need to make money but the amount of adds on this video... baby chesus

[@onesmoothcat]

Doesn’t sound like a good idea…..not my cup of tea