As we start 2024 we will find ourselves with a short window of opportunity to purchase deeply discounted multi-family properties, the likes that have not been seen since the Resolution Trust Corporation days of the 1980s and 1990s.
Over the last three years many investors, most inexperienced, overpaid for and overleveraged multi-family purchases. The problem now for them is interest rates have doubled (and I believe even though rates are heading down there is a good chance this year they will climb again - possibly to 10%), property expenses have climbed well over 15% per year and rents are flat. In short, there will NOT be enough cash flow for thousands of owners to make their mortgage payments and they will default. Thousands are already in default.
Owners will be desperate to at least get some of their investment back while lenders will be desperate to unload these properties. This translates into being able to buy multi-family properties at discounts over the next 18 - 24 months and we will do just that.
My formal plan has been sent to you via email, however, if you did not recieve the plan or have questions about how we will be moving forward please feel free to contact me.
Thank you and continue to have a terrific 2024! We surely will!
Heartland Investment Partners