Multifamily Outlook For The Private Investor

929 views

Video added by Walker & Dunlop - Company and Property Videos | Date Uploaded: December 18, 2023 | Date Created: October 25, 2022

Description

Today’s webinar is hosted by Ana Ramos. She is the managing director of the West Coast Regional for Walker & Dunlop Small Balance Multifamily Lending Group and has been in the industry for over 20 years. She is joined by panelists Luke Erlandson, Matt Jones, and Scott Doyle to discuss how private investors can navigate the current market for 5-150 multifamily properties. Luke Erlandson is the Senior Director and the Midwest Production Head for Walker & Dunlop’s Small Balance Group, based in Chicago, and specializes in non-recourse financing solutions. Matt Jones is the Managing Director of Walker & Dunlop’s investment sales team based in Michigan and has 14 years of experience. Scott Doyle has worked in Walker & Dunlop’s investment sales team in the Mid-Atlantic region for three years. The webinar starts with an overview of the market: deals are getting done, uncertainty among buyers and sellers, and a pessimistic view far from the truth. Financing activity has decreased, but options remain available for private investors, such as Fannie Mae, currently with the best fixed-rate pricing, agency products, flexible pre-pay, full-term interest, maximizing IO term, and Walker & Dunlop (W&D). To get successful loans, borrowers should do everything they can to have strong collections, and push rents as much as possible without affecting occupancy too much. They should also try minimizing and cutting expenses, aiming for the highest net operating income possible. By providing companies like W&D with strong financials, the best product is attainable. Sellers can prepare for the current market by considering occupancy rates remaining high, trade outs toward the top end of the range, and cap rates. It’s also important to have relationships with non-recourse solution specialists, understand the debt market, articulate plans clearly, and provide certainty of execution. Cap rates are dependent on the product type. Capital buyers have the benefit of getting conviction around the microeconomics of an asset or sub-market. Rates have been macro across the country, and even in tertiary markets like the Midwest, there is still a 7-10% growth in trade-offs. Having the crutch of the US government, the Mid-Atlantic stays consistent at around 3-5% as deals are happening. For investors, rates are in the 5-7% range. W&D can help sellers and buyers have a better grasp of micro and national markets with the resources, tools, and collaboration they develop. They keep debt in-house, and leverage clients to put them in the best deals possible. The difference between W&D and local brokers is that W&D is a direct lending partner with Fannie Mae and Freddie Mac. Credit spreads are higher with the current environment, and everyone’s pricing risk differently, hoping Freddie and Fannie put out all the money allocated to them. Location affects investors’ preferences as many have found success in tertiary markets. When asked which is better, lower cap rates than interest or vice versa, it depends on how much you’re willing to stomach. Increasing default rates next year is likely as there’s potential for people to come in if some borrowers have problems. Key Points In The Webcast: 02:22 Introduction of panelists 02:49 Overview of the market 05:35 Options for private investors 08:04 Tips for potential borrowers and sellers 11:11 Overview of cap rates 15:40 Services for sellers and buyers 17:41 Why Walker & Dunlop is different 22:06 Benchmark rates projections 23:31 The impact on investors’ preference 26:11 Are lower cap rates vs. interest rates better? 23:15 Increasing default rates on floating bridge loans 34:13 Other asset types 34:24 Refinancing in five vs. ten years 35:32 Deal size for private investors and minimum loans 36:35 Freddie vs. Fannie 39:50 Condo conversion and mortgage brokers 41:31 Green Globe certification and current floating rates 43:44 Closing advice


Categories:
Economics/Market Reports/Research, Events / Webinars, Lending / Finance, ESG (Environmental, Social and Governance)
Property Types:
Multifamily
States:
ALL


Suggested Videos

Bridle Path Estates, Apple Valley, CA (±1,102 homes ready to be developed)
Bridle Path Estates at Apple Valley (the “property”), an approved specific plan for up to ±1,102 homes consisting of ±664 gross acres. (APN’S: 0472-051-40 & 0472-051-41). Located in the Town of Apple Valley, California, the Subject Property is bordered to the north by Falchion Road, to the east by Chippewa Road, to the west by mountains, and to the south by Tao Road which enters into the southern boundary of the Property. The Subject Property is also located just south of the approved Hi
[CLIC] Connect with Dorraine Lallani
[CLIC] Media is proud to present [CLIC] Connect our Hospitality, Travel & Tourism interview show. We are bringing Hospitality Leaders and insights to our conversations from across the Continent and Beyond Joining the conversation today is Dorraine Lallani, Sr. Director Asset Management Westmont Hospitality Group. We are talking about Hotels, Asset Management, Labor & Staffing, Red Roof and so much more.... Please tour our website and sign up for our Blog at cliconference.com.
Eastern Shore Centre LED Parking Lot Upgrade | LED Lighting by LED Solutions
Eastern Shore Centre in Spanish Fort, AL Transforms Parking Lot with LED Lighting Upgrade by LED Solutions [Before & After] Visit https://www.ledsolutions.net for more information! Dramatically improve your commercial property's safety, security, and curb appeal with a modern LED lighting upgrade! This video showcases the incredible transformation of Eastern Shore Centre's parking lot in Spanish Fort, AL by LED Solutions. Witness the dramatic improvement in visibility with energy-effici