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

[@BJNeyer]

Sorry, but build to rent is the way to go compared to purchasing older places and trying to rehab them. I built a 4 plex as supply costs were rising in 2022 and two units cover ALL my costs, taxes, insurance, debt service and maintenance.

[@keithkerns8770]

Love your channel! Thank you…

[@23drcharles]

The Apartment bubble will be a major disaster in 2026. In the new book, The Bubble That Broke The Bank, the real estate industry is on a slippery downward slope. It is time to leave the real estate market.

[@ccolburn4945]

great post i work in the maintenance side of multi mostly class A and B and i witnessed a lot of refinancing and very little asset preservation all the equity they pulled out went to fund other purchases leaving the current asset in shambles i don't think they really understand that preserving the asset is the most important if its in good shape money can always be found i see some fire sales for sure get out the for sale signs

[@aceofslayz]

His book is giving me so much confidence. It's the kind of book that even when you're completely clueless, he sounds like he knows what he's talking about so you just believe him haha. Maybe it';s his experience in law enforcement but "he speaks in a way you can understand...his voice needs to be out there more." Couldn't agree more!

[@adamsorrells4052]

Very smart guest. Great interview.

[@MaxxMcKenna]

Yeah terrific episode! I’m new to this channel, but a regular on the bigger pockets channel. Very insightful.

[@BPOnTheMarket]

Glad you enjoy it!

[@christopherball9865]

Great guest and great questions…Bravo!

[@GemmaMR818]

They go up because said below same ten people own majority of properties they corner market. If they get $4,000 4 bedroom their neighbor thinks they can. My area absolutely do

[@russellinvest]

Great interview. Thank you

[@Ricocase]

Phoenix new builds were rushed and of low quality...shhh. Thoughts on land, notes?

[@vincentmurphy9252]

It’s the opposite residential going to get crushed commercial also but homes way over valued from Covid

[@RobertHasty]

Great interview, learned alot.

[@shanedavis4963]

thoughts on building new construction single family develompments

[@irisgao6646]

Very helpful for someone interested in industrial warehouses

[@BruceTheBroker]

What's the big stack of books on your credenza.

[@stanleykowrach1957]

Great video. I am a stock market investor trying to enter real estate. My opinion the Biggest factor that no one talks about is "Unemployment rate". When 8-9% unemployment hits then prices will drop Right now Labor shortage employers are happy to pay a bonus for new hires!😁

[@inviz1769]

Who’s to say we hit 8-9% unemployment? Cpi 5% and still unemployment has not budged!

[@ramezqubain8177]

Burke is the man. Wow!

[@karminaluna-dominguez591]

Are we referring to 5+ units or just the syndications?

[@BPOnTheMarket]

Both!

[@JCneverFails]

Newby question... what's the difference?

[@davidmeyer1101]

@@JCneverFails Good question! Multifamily (5+ units) is a class of commercial real estate, which is what we're talking about on this episode. Syndications is one (of many) ways that you can structure a multifamily deal. Syndications are when investors pool their money together to buy a large asset.

[@marinawong9662]

Brian’s investment is mostly in syndication. The most difference I see for recent transactions (21-23) is debt structure. Syndication has been using mostly floating rate. Small multi families were mostly on fixed rate (even if it’s only fixed for 5 years). This makes for a big difference in terms of cash flow. I personally don’t think these smaller multis will have too much trouble IF they can cash flow a little from day one, or shortly after purchase. Syndication would see cap rate expansion because some operators will HAVE to sell when the debt needs to be refinance or when the interest only period ends. Of course if small, multifamily operators don’t know what they are doing, they could get themselves in trouble very easily during these difficult times.

[@AK-rza]

Probably depends on what your deals look like. If you're buying at respectable GRM on your 5+ units then I think you'll be okay. There is a huge difference in what makes a good deal on a 5-10 unit vs a 50-100unit.

[@GemmaMR818]

Right to many people thinking they are real estate mafia. Don’t do the math. My husband developer 30 years it’s nuts

[@ahmadfarahani9588]

Been addicted to your quality content shows. I only wish you and others always “Time Stamp” shows to put things in context.

[@ThatADUGuy]

Another great one! Thanks!

[@matthewconner463]

Very informative channel

[@georgerobertsiii]

Great podcast. I loved the debrief at the end. Unique format.

[@jerrygandia2650]

There has to be at 5 different formats for investing. Never seen this one coming. Thank you for the great insight.

[@Braveheartman123]

As far as class A vs Class C, my take is that class C is SAFER. The reason is that Class A renters can always “fall back” to renting Class B or even C in a tough economy. I feel Vacancies (and hence rents) therefore can become a bigger problem for Class A. Class C has a shortage of units and there’s relatively little new construction of Class C, so even with the increase in evictions, vacancies should remain low and rents should hold up well due to low supply

[@georgerobertsiii]

The observations of operators who made it through the last cycle is that the reverse is what actually transpired. Even during the pandemic it was class C that suffered the most with class A and B doing much better. I trust higher class assets going into the next downturn.

[@Braveheartman123]

@@georgerobertsiii well do you agree that CAP rates tend to be higher for Class C multi family than for Class A? It’s not easy being a “slumlord” but they often enjoy CAPs of 9-12%, as opposed to luxury rental unit owners seeing a 4-7% CAP.

[@MetalBum]

Love these. So many different markets within real estate market.

[@shobhatatineni]

Great Interview. Very educational

[@ginacardarella]

Never in los angeles!!!!

[@libertysprings2244]

Smart. My friend in multifamily sold everything late 2020-2021.

[@dhowto3005]

Thanks!

[@Lucki_Lefty]

Great Interview. His experience/knowledge breaking down why the collective thinking/thesis’s sound good but are actually incorrect was insightful.

[@robertoinvests]

they are correct he just had a bad experience he must not have known his sub market very well the idea to be recession proof is you want to purchase class C and C+ properties in class C plus and B-neighborhoods. The other piece is that you have to fix the units up. It’s always a question of knowing the sub market very very well and understanding what can be absorbed and what median income level you’re targeting.

[@deltadigger2833]

Cap rates or rents need to go up.

[@pogiboy3571]

... not gonna happen in commiefornia that's for sure.

[@s.gharavi1614]

And yet, neither will.

[@robertoinvests]

4 to 5 caprate adjustment is a 20% difference not 25%

[@jph613]

It is a 25% increase. Do the math...1/4=0.25. A lot of people make your mistake.

[@natalieheinrich1746]

That was great!! 45:59

[@jchrra]

Good Stuff

[@svenmaric]

What are your thoughts on Grant Cardone’s investment strategy in multi-family? He is still buying.

[@buyfixrentrepeat1270]

He's the only person I know who became a billionaire in one decade. He may be doing something right. He seems to have been right in the last 10 years. If he continues to be right he is going to make a lot of money again.

[@codymegehee299]

I just wish people wouldn't buy up all the cheap housing to turn int o unaffordable rentals so I can finally purchase a home. Oh wait, boomers need a second condo.

[@GemmaMR818]

Do people know how to make money on multi? Not sure if they get it. Unless you are in a terrible market and sucked equity out. You have to be pretty ridiculous not to make money

[@robertoinvests]

This guys smart

[@Youtube_ban_me]

Yay, I want to buy a multifamily

[@chadgriffith5819]

Prob my fav all time, he nailed my thoughts to a T.

[@nathanhaws5838]

Great episode. I was looking at a deal on holdfolio and this has helped me with my due diligence and decision making process.

[@robertoinvests]

very good video …if you purchase class C properties in a B neighborhood then you’re a recession proof you just have to provide the amenities that class a and B tenants like. Sounds like he was purchasing class c buildings in C minus neighborhoods. Can’t say that I blame him it’s a tough business. You have to be an expert in your submarket.

[@relaxandlivelife7093]

I’ve been following bigger pockets since 2014. Are you guys going your own ways with separate podcasts ?

[@natalieheinrich1746]

This was great! 44:05

[@wlryanperera37]

BP - please make these videos short and concise ( vs dragging on for 58 mins)

[@BPOnTheMarket]

Thanks for your feedback. These are podcasts, and are meant to be long form interviews.

[@bryanbell9103]

@@BPOnTheMarket keep it long form, need to really get a comprehensive conversation. Can't do that in a shorter format.

[@robertoinvests]

just put the speed on fast…

[@jscottkorff]

@@BPOnTheMarket 😊😊😊😊

[@jscottkorff]

@@BPOnTheMarket 😊😊😊😊😊😊😊😊

[@AirForceA7x]

Sponsored by fundrise: Vested interest much?

[@robertoinvests]

❤

[@buyfixrentrepeat1270]

I had to unsubscribe too many catfish titles and up and down guest and with pace now being feature and the whole bigger pocket thing being created to cut out gurus this channel has changed

[@AK-rza]

They have definitely changed and are more of a business trying to sell their products vs trying to share and educate. I am curious if BP was sold within the last 24 months

[@buyfixrentrepeat1270]

@@AK-rza I don't know about last 24 months but they did sell Josh sold the company to group of investors.Once Josh left the podcast things changed when Brandon became the main host and all after

[@AK-rza]

@@buyfixrentrepeat1270 interesting. I never heard he sold it while Brandon was still there. I felt like it was slowly changing with Dave and Brandon hosting but it became obvious to me it was a commercial business when Brandon left.

[@wanderingdoc5075]

@@AK-rza Josh sold BiggerPockets around 2017 2018 to private capital for 30 or 50 million or so. Since then good information on the forum is all but extinct, it's now just pushing books, memberships, and gurus. It is what it is but that being said Brian is one of the rare exceptions. I've invested in 5 of his deals as an LP and I've been happy.

[@AK-rza]

@@wanderingdoc5075 that's awesome about Brian. I remember him as an early guest. Intelligent and informative. I guess that timeline makes sense. It's probably been 3-4 years... But feels like 2. Time flies with young kids