Posted about 1 year ago

The Resilience of Workforce Housing

The Resilience of Workforce Housing

This graph from the Mortgage Bankers Association shows Fannie Mae and Freddie Mac (2000-2019) who, together, hold more than 80% of the commercial/multifamily mortgage debt outstanding.

While the rise looks dramatic, they were both <1% following the Great hashtag#Recession; Fannie peaked at 0.8% and Freddie at <0.4%.

This includes the coasts and all classes (A, B, C, & D). If you were able to filter out the A & D classes, 2 we steer clear from, the delinquency would be less pronounced.

This asset didn’t take the whack that single family took as they have the ability to generate cash in any market when: you buy in the right market, finance properly, don’t over leverage, and manage well.

B & C class workforce housing can weather the storm & operate as a recession proof asset class.

Patience is a virtue; always stick to your mandates, remain disciplined on price, asset class, location and invest for cash flow - with the right management, impact, and financing you can put together deals in every market.