Kaufman & Company’s Post

📊 Multifamily Market Insights: Q4 2024 Recap 📊 Underwriting assumptions stayed steady in Q4, with slight shifts in IRR targets and rent growth expectations. What does this mean for 2025? Read my latest blog for the full breakdown: 👉 Read here https://lnkd.in/dR3zuakc

📊 Multifamily Market Insights: Q4 2024 Recap 📊 Underwriting assumptions stayed steady in Q4, with slight shifts in IRR targets and rent growth expectations. What does this mean for 2025? Read my latest blog for the full breakdown: 👉 Read here https://lnkd.in/eeK5mRPA

To minimize risk and consider all possibilities, savvy multifamily investors always stress test their underwriting to see how it will perform if some of the assumptions made were incorrect.⚖️ The most common questions to ask to stress test your underwriting : What happens if interest rates change? How will it affect projected returns? 📈 Adjust occupancy and rental income projections - what is your break-even occupancy level?📝 What happens if you have a lower NOI than expected? Look at the lowest NOI in the property history - can the property still service the debt? 💵 What happens if projected renovations go over budget or experience delays?🛠️ What is the impact on returns if the exit cap is above or below projections?⬆️⬇️ What variables or assumptions do you test?

Lument's latest In Conversation webcast —Prospects for Multifamily: Are We Reaching a Reset?—featured industry experts with distinct perspectives on what the future may look like and how a reset might unfold. Read their take on how the Fed's rate cut and other tailwinds can help energize multifamily deal flow. https://lnkd.in/ghAF5n6C #RateCut #InConversation #MultifamilyFinance

Cap rates—heard of 'em, but what do they mean? 🤔 Simply put, a capitalization rate gives you an estimate of the potential return on your multifamily property. High cap rate? 📈 Higher risk but also higher potential profit. Low cap rate? Lower risk and potentially lower returns. Choose wisely! 💡 #CapRates #RiskVsReturn

Cap rates—heard of 'em, but what do they mean? 🤔 Simply put, a capitalization rate gives you an estimate of the potential return on your multifamily property. High cap rate? 📈 Higher risk but also higher potential profit. Low cap rate? Lower risk and potentially lower returns. Choose wisely! 💡 #CapRates #RiskVsReturn

Should You Buy A Home Now? 🏡✨ In this video, we explore the current housing market and discuss why it's a smart decision to invest in real estate now, even amidst fluctuating interest rates. Discover insights on pricing and potential refinancing strategies for future savings! #HomeBuying #RealEstateAdvice #InvestmentStrategies #HousingMarket #RefinanceTips #SmartInvesting #FinancialFreedom #PropertyInvestment #MarketTrends #HousingAffordability

Is Multifamily Real Estate Catching a Falling Knife? Now might be the perfect time to capitalize on multifamily properties hitting the market at discounted prices. With short-term debt expiring and higher cap rates impacting values, smart investors have a unique opportunity. Don’t miss out on potential bargains—read the full article to discover how you can make the most of this shifting market! https://loom.ly/xGt7AO8 #RealEstateInvesting #MultifamilyInvesting #InvestmentOpportunities

Fannie Mae and Freddie Mac increase their caps modestly for 2025. Juxtapose this to The Mortgage Bankers Association projection of a 31% increase in multifamily lending and you would expect to see big growth from non-agency lenders.

As market conditions shift, staying ahead requires accurate data and a strategic approach to due diligence. In this article for GlobeSt.com, Drew McCreery breaks down the impact of Fannie Mae and Freddie Mac’s updated Multifamily Guides and increased lending caps for 2025. Discover how these changes can shape investment strategies and support affordable housing goals. https://lnkd.in/gZJNN2ed