Top 3 Opportunities in 2023

The cost of capital has changed and the type of loan that you currently have on your property can either be your best friend or worst enemy. Many of the opportunities that we come across revolve around the debt placed on the property. The market tailwinds have blessed many of us, now it’s time to focus on key issues so that we can continue building wealth through multifamily assets.

• Loan maturities

• Underperforming Properties

• Loan assumptions

Fortunately, we have several solutions that can help guide you through a changing market. We are very blessed to be involved in multifamily properties in TX! Our goal is to help you maximize the performance of your property so that you can enjoy the cash flow and get the most out of it when you decide to sell.

Loan Maturities: According to Trepp, there are 352 multifamily properties in Texas that have loans coming due in 2023. These include CMBS loans, Fannie/Freddie, and any loan that’s been securitized. If you have a loan that’s coming due, we can help a couple different ways. First, we can provide an asset management analysis for you to see if you’re better off to exercise your extension options on your current loan (if available), refinance, or sell. We can also refer you to some great lenders who can provide the best refinance terms if that’s the route you choose.

Underperforming Properties: There’s a long list of properties that aren’t breaking even right now. The headwinds of interest rate cap insurance, higher property taxes, higher insurance premiums, and other un-budgeted costs have put many properties behind the eight ball. There are several ways that we can help you with these. The first is that we can compare your property with others in the market to benchmark it and help identify where income and expenses vary. The second thing is that we can help identify value add opportunities that could be implemented to boost your current cash flow and have a short payback period. Finally, we can do an asset management analysis for you to compare your options of holding, selling, or recapitalizing so that you have the capital required to execute your business plan.

Loan Assumptions: This is the best buying opportunity for 2023. These are fixed-rate loans, with low interest rates, that have more than 5 years left on the term. It’s ideal if you’re an owner who has a great loan to assume. These properties are in high demand since the cost of capital is lower. If you’re selling a property with a great loan, there’s no reason that you can’t get last year’s pricing when you’re selling since the cost of capital is low and fixed. The way that we can best help you on these properties is to provide a BOV and give you valuation of what your property could trade for on a loan assumption basis.

Call us when we can help you with your multifamily investments. Put us to work for you and let us earn your business!