Mac Shelton’s Post

The multifamily real estate sector is experiencing a notable slowdown in new development starts due to economic pressures, particularly in Texas and the Southern and Western U.S. Rising construction costs, higher interest rates, and market saturation are squeezing profit margins, making new developments less attractive and prompting developers to scale back on new projects. The slowdown may lead to tighter rental housing supply in the future, potentially driving up rents, while also stabilizing markets that have experienced rapid expansion and overbuilding. This shift in strategy is creating unique opportunities for investors in the preferred equity and distressed acquisitions spaces. Click below to register for our Preferred Investor Club, and gain access to trending industry topics and Club Capital's current offerings. https://hubs.li/Q02zs9WH0 #PreferredEquity #CREInvestment #Multifamily #Housing

One trend we’re seeing nationwide is a rising cost of maintenance and repairs on rental properties, which can significantly affect your cash flow.   One way to mitigate this risk is to buy properties that don’t require maintenance, such as brand-new construction homes (which are new and still under builder warranty) or commercial NNN leases (in which the tenant pays the maintenance expenses).   Of course, brand new homes and NNN commercial properties are more expensive than older, renovated homes, so these options are not for everyone. But if you have enough capital (~$70K for a new home, all-in), rising maintenance expenses are one more reason to lean toward new construction homes for your 2024 acquisitions. #realwealth #realestate #investing #realestateinvesting #singlefamily #singlefamilyrentals #passiveincome #cashflow #realestatetrends #housing #housingmarket #market #realestateinvestment #finance #financialfreedom #financetips #investingtips 

In the last 8 months, we've successfully hit target rents in nearly 70% of our portfolio! 🎉 This achievement is a testament to our strategic approach and deep understanding of the New Hampshire real estate market. This milestone reinforces our confidence in our model and encourages us to continue expanding our portfolio. We remain committed to delivering excellent returns for our investors through careful property selection and top-notch management. We’re excited about what the future holds and are dedicated to moving forward with the same level of diligence and passion. Here’s to more successes and continued growth! 🌟 Comment "Invest" to get started 💡 #realestate #success #ClosedDeal #propertyacquisition #passiveinvesting #realestateinvesting #nhinvesting #passiveincome #multifamilyinvesting #realestate

"In a testament to how brutal the year has been, only two multifamily markets have produced positive total returns in the last 12 months, according to a new report by Newmark: Fort Lauderdale and Miami at 0.7% and 0.3% respectively, helped by 4.0% income growth. Appreciation declined but West Coast markets like Los Angeles, San Jose and San Francisco all showed double-digit total return losses." Cap rates have gone up 90 bps Y-o-Y. But where there is pain, there is also opportunity - dry powder at closed-end funds has increased by 11% since the start of this year. Record fundraising by opportunistic funds in this year’s second quarter appears to have pushed the increase as investors plan to take advantage of asset repricing. The $219 billion in dry power raised for equity investments—but not for debt strategies—equates to a leveraged purchasing power of $488 billion. That uses a 55% loan-to-value ratio. Newmark estimates that more than half of this capital is targeted at multifamily assets with most of the remainder focused on industrial assets. The capital targeting office and retail assets is quite small by comparison. #realestateinvesting #cre #multifamily #equityfunds #debtfunds #lending

Blackstone Makes a $10 Billion Bet On Multifamily Units As Real Rents Begin Re-Accelerating… The Wall Street Journal's headline announced Blackstone's $10 billion acquisition of Apartment Income REIT, taking the company private. "The acquisition is Blackstone's largest transaction in the multifamily market," WSJ pointed out. This move signals the firm's bullishness on the rental housing market, especially when rents are beginning to re-accelerate. Blackstone agreed to purchase AIR Communities for $39.12 a share, representing a 25% premium to the company's closing share price on Friday. The deal is being completed through the investment management company's $30.4 billion global real-estate fund. Blackstone favors rental housing as one of the hottest places in the commercial property market to invest. The acquisition of AIR will give the investment manager exposure to 76 rental housing communities in coastal markets, including Boston, Miami, and Los Angeles. Blackstone has been aggressively increasing investments in CRE markets, a major bet the Federal Reserve's interest rate hiking cycle has plateaued and cuts near…. #blackstone #multifamilyrealestate #interestrates

"TruAmerica Multifamily Obtains Fresh Equity for Properties in Las Vegas and Atlanta" Read the full article below..

Multifamily Monday Are you ready to invest in multifamily real estate? Buying multifamily properties will be a game-changer for your investment portfolio, offering both income and potential appreciation. Whether you're a seasoned investor or new to the market, it's crucial to understand the dynamics of multifamily investments - today - not the same as when you last invested. Factors such as location, property condition, tenant profiles, and market trends play significant roles in the success of your investment and adjust frequently. Our experienced team is here to guide you through every step of the buying process, from identifying lucrative opportunities to securing financing and closing the deal. The biggest one - working with us because we invest in MFH ourselves. #realestate #business #commercialrealestate #investing #diversify #build #grow #challenge #results #service #professional #modesto #california #ca #stanislauscounty #centralvalley #investor #invest #REI #passiveincome #turlock #sacramento

East Superior Real Estate Partners Case Study 📚: Bridgeport 4 Flat In the heart of Chicago's Bridgeport neighborhood, our journey continues to show progress — a testament to our commitment to focus on strategic investments. Starting Strong: December 2014 December 2014 saw us acquire a four flat on 32nd Street, a result of thorough market analysis focused on Bridgeport's potential for thriving rent growth. Navigating Challenges: Property Evolution Acquiring below market value posed challenges. Our team expertly handled building violations and extensive interior renovations, transforming hurdles into opportunities through seasoned experience. Strategic Growth: A 7.4-Year Transformation Over 7.4 years, our focused strategy evolved the property. Beyond a physical renovation, it strategically evolved. Two years post-acquisition marked a key moment: a successful cash-out refinance, yielding a 1.6x return on our initial equity. Results: Numbers That Speak By June 2022, the property sold, boasting exceptional metrics—an impressive 59% IRR, a 9.0x Equity Multiple, and a solid 7.4-year hold period. Acknowledgments: Team Effort The Bridgeport 4 Flat achievement stands as a testament to our seasoned team's foresight and execution. It exemplifies our commitment to turning opportunities into successful ventures. Learn from Our Journey: Elevate Your Investments This achievement isn't just about a property; it's a roadmap for demonstrated performance in investments. Connect with East Superior Real Estate Partners to explore how our experience can enhance your investment portfolio. #multifamilyrealestate #chicagorealestate #realestateinvesting

While we’ve done dozens of development deals in the past few years, we’re excited to announce our first property purchase since February 2020: the impending acquisition of a 300-unit garden-style multifamily property in suburban Dallas.     In today’s Bisnow article, Origin Co-CEO David Scherer discusses the impact of recent high-profile transactions by investment giants like KKR and Blackstone. With stabilized interest rates and strong fundamentals, multifamily demand is set to outpace supply. Read the article here: https://bit.ly/3XIGcFY #realestate #multifamilyinvestments #markettrends 

👀 INDUSTRY TAKE 👀 The recent acquisition of Ballard's Koi Apartments by a joint venture of Timberlane Partners and STARS REI highlights the challenges and opportunities in today's real estate market. With the purchase price significantly below replacement cost and prevailing high interest rates making traditional financing costly, the deal stands out as a strategic move. #GoodWork The joint venture's recent acquisition of Wilcox Apartments further underscores their ability to identify undervalued opportunities and navigate market complexities. With a bullish outlook rooted in expectations of a sharp recovery over the next few years, like them, 1892 Capital Partners stands poised to support investors in realizing their goals amidst market uncertainties. In this ever-emerging credit market, our team emerges as a valuable resource. As a direct hard money lender, we provide financing solutions for opportunistic acquisitions where other lenders may not. https://lnkd.in/gYjHm5uC