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2023 Multifamily Investment: Capitalizing on the Top 3 Opportunities in Texas

In the dynamic world of real estate, the cost of capital and the type of loan on your property can be pivotal factors in determining your financial success. Many opportunities in the multifamily market are closely tied to the financing of the property. The current market conditions have created favorable tailwinds for investors, and it's time to focus on critical issues to continue building wealth through multifamily assets. Here are key considerations:

Loan Maturities: According to Trepp, there are 352 multifamily properties in Texas with loans maturing in 2023, including CMBS loans, Fannie/Freddie loans, and securitized loans. If your loan is coming due, we can provide valuable assistance. We offer asset management analysis to help you determine whether it's best to exercise extension options on your current loan (if available), refinance, or sell. We can also connect you with reputable lenders who can offer competitive refinance terms to suit your needs.

Underperforming Properties: Numerous properties are struggling to break even due to factors like interest rate cap insurance, higher property taxes, increased insurance premiums, and unforeseen expenses. We offer multiple solutions to address these challenges. Firstly, we can benchmark your property against others in the market, helping you identify income and expense variations. Secondly, we can pinpoint value-add opportunities to enhance your cash flow with a short payback period. Lastly, we provide asset management analysis, comparing your options of holding, selling, or recapitalizing, to help you execute your business plan more effectively.

Loan Assumptions: 2023 presents an exceptional buying opportunity, particularly for properties with fixed-rate loans featuring low interest rates and more than 5 years left on the term. If you own a property with an attractive loan to assume, it's in high demand due to the low cost of capital. When selling such properties, you can command pricing similar to previous years because of the low and fixed cost of capital. We can assist you by providing a Broker Opinion of Value (BOV) to determine the potential value of your property based on a loan assumption basis.

For all your multifamily investment needs, don't hesitate to contact us. Let us put our expertise to work for you and earn your business. We're here to help you navigate the ever-changing landscape of multifamily real estate in Texas.


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