SFR Analytics’ Post

Our expertise lies in acquiring properties through direct transactions with owners, bypassing the conventional market channels. While securing off-market deals may be challenging in highly competitive and consolidated niches like multifamily, it aligns perfectly with the fragmented realm of parking. Across the United States, a significant number of parking lot owners are what we refer to as "mom and pop" businesses. These owners operate independently, representing the majority in this niche. While robust microeconomic market fundamentals are crucial, a strong market alone does not guarantee success. This is where our core competency shines through as we specialize in creating off-market transactions. In simple terms, we don't buy markets, we buy deals and we love parking deals. By leveraging our expertise in off-market acquisitions, we uncover unique opportunities that may have gone unnoticed in traditional market scenarios. This allows us to navigate the parking sector with confidence, seizing prospects that align perfectly with our investment strategy and objectives

New post available from the research and analytics blog breaking down the Florida SFR market including rent growth changes, investor activity, and more. Read it here: https://lnkd.in/ggQXqS6T —- * Across Florida, rent growth accelerated rapidly in 2021, reaching over 12% year-over-year in many metro areas; that trend has since reversed, with rent growth slowing and even going negative in a handful of metros. * While inventory has come roaring back more than doubling from lows in early 2022, it still remains below pre-Covid levels for most markets in the state. * Florida has been a popular state for large SFR operators, with an estimated 100,000+ single-family homes in the state owned by institutional investors. * Investor acquisitions continue to outpace investor dispositions, although total investor transaction volume is down. * At the end of the article, a CSV showing detailed information about investor ownership in Florida for properties purchased during 2023 is available.

Rents are the most difficult piece to underwrite on new apartment acquisitions today. Most buyers aren't assuming meaningful upside. At the same time, many are just using the lowest effective rent for each unit type. This creates a "gain to lease" in many instances. Then, with increases in expenses because of "inflation," net operating income looks bad. Throwing a cap rate on those depressed numbers creates a value that sellers don't like. This creates the bid-ask spread. Until we all feel better about the direction of rents (or be the contrarian and willing to project this out like KKR, Blackstone, etc.), and assign more value to that growth, deals won't get done.

I recently had the privilege of participating in a panel discussion at a buyers agent mastermind event, where industry leaders gathered to share best practices and insights into the ever-evolving real estate landscape in Australia. During our discussion, it was evident that the foundation of real estate wealth is built during the buying process, not just at the point of sale. Why? Strategic Acquisitions: It’s not just about buying property; it’s about making informed decisions that set you up for long-term success. A well-negotiated purchase can save you thousands and position you in an area with high growth potential. Strategic Acquisitions: The adage "buy low, sell high" rings true, but it’s more nuanced. The real wealth is created when you acquire properties that will appreciate over time, often yielding returns far exceeding those from properties bought at peak prices. As a dedicated buyers agent, I specialise in guiding clients through this intricate process. Whether you’re a seasoned investor or a first-time homebuyer, my goal is to empower you with the knowledge and strategies needed to navigate the market successfully.

🏡🤔 To Buy or to Build? The age-old debate in the real estate realm continues! Whether to build your rent roll organically or dive into a ready-made portfolio is a hot topic buzzing in the industry. 🚀 Is organic growth the golden path, or does the strategic acquisition of a rent roll hold the key to success? The answer might surprise you! 🗝️🔍 Click the link below and READ THE BLOG now! 📑👇 https://buff.ly/3YdSzIr #realestatedebate #buyvsbuild #rentrollstrategies #industryinsights #realestatedecisions #propertymanagement

The multifamily market is in a different place than it was a week ago, marked by another earth shaking portfolio acquisition by KKR. In the span of roughly 2 months, following Blackstone’s $10B purchase, KKR has made the second multi-billion dollar bet on the health of the multifamily market moving forward. These acquisitions will continue to bolster the confidence of both private and institutional groups alike, creating more dynamic bid sheets that foster competitive pricing. The dreaded bid-ask spreads of the past 2 years are narrowing. https://lnkd.in/eSasjKVz

We still have some room for a few more investors. Projected 19% annual returns (Net IRR). 2.18X equity multiple. Invest 100k and receive $218,000 back in 5 years. 8% preferred return. Limited partner investors get the first 8% of the profits before the general partners get any of the splits. Investors own 80% of the asset pro rata. The general partners own 20%.

🏘️ I've had two multifamily acquisitions that I have spent considerable time on this year. Neither came together, yet. Both for similar reasons.   The owner thinks the property is worth much more than it is. I was very surprised by the expectations from both of these ownership groups. Cap rates would be low, and these properties need work. What are the owners thinking?   They are probably thinking exactly how I would be thinking. I don't know because that information is not usually shared, but here are some likely reasons.   They don't have to sell. They have cash available to fund a property that's losing money, and they're on track to getting income up and expenses down. They are certain interest rates will be coming down. They're certain a buyer will emerge who needs a deal just like theirs.   In other words, not desperate, at least not yet.   Many deals are bought months after the initial offer was submitted and rejected. This is the time to wait it out. Being aggressive might be our natural tendency but it's not always the right answer.   The other important observation is that a deeper understanding about a property comes with time. The first conversation or two with the broker is not when you'll learn the most important information about this property. That comes later, after they know you're interested.   I have uncovered information about both of these properties that reassures me that I will have another chance with them, because I was persistent and respectful. ____ #multifamilyinvesting #multifamilyrealestate #passiveincomeinvesting #financialinvestment #realestatesyndication #multifamilyinvestor #multifamilysyndication #passiveinvesting #passiveinvestor

For many individuals, buying a new home or a piece of land does not seem all that different. The reason is that both acquisitions are considered to be property purchases. However, there are many differences that you should keep in mind when considering investing in real estate. You should be aware of all the pros and cons related to both investment possibilities. Check out the significant differences between buying land and buying a home through our blog! https://lnkd.in/eGn3mTv8 #HomeBuying #BuyingLand #ProsAndCons #InvestmentOpportunity #RealEstateInvesting

Despite rising interest rates, HPI finds continued interest in apartments from investors. HPI's strategic acquisitions highlight a shift in focus towards newer properties while maintaining interest in older assets for renovation. #InvestmentInsights #RealEstateStrategy #MultifamilyInvesting