With interest rates at the highest point in decades, multifamily and commercial real estate purchases have dropped by more than 50%. Cash flow looks almost nonexistent, but good deals could be right around the corner as inexperienced operators are forced to give up their properties or pay MASSIVE amounts of money to the bank. What can you expect as the 2024 housing market rolls around? Stay tuned; we’ll give you all the info!
Alison Williams, SVP & Chief Production Officer at Walker & Dunlop, joins us to discuss “small balance lending” and where MANY multifamily investors get their money. Alison is able to tell you point-blank what a lender needs to see to lend on your deal, how much money you should be prepared to come to the table with, and what could happen as the bridge loan bomb begins to go off.
Alison also believes we’ll see “a LOT of deals” in the coming months/years as operators are forced to refinance, foreclose, or sell. This presents a massive opportunity for new investors who have been starved of deals and are looking to pick up another property without paying 2021 or 2022’s high prices!
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Show notes at:
00:00 Intro
01:39 "Small Balance" Lending Explained
04:34 Multifamily Purchases Fall 50%
07:30 Stress, Defaults, and $250B Due
13:22 "We're Going to See A LOT of Deals"
19:01 What a "Good" Deal Looks Like
22:00 Rising Taxes and Insurance Prices
25:32 Can New Investors Get Loans?
26:49 Advice for Investors in 2024
28:27 Connect with Alison!
29:20 DON'T Count on This
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By: On The Market Title: “A LOT of Deals” To Come in 2024 as High Interest Rates Take Effect Sourced From: www.youtube.com/watch?v=G-Y5OMvuorA
