All Forum Posts by: Jorge Abreu

Taylor, all of the above. Definitely seeing migration especially in states like Texas and Florida. New York and California seems to be the ones losing the most population from the migration. 

Not enough units being delivered to keep up with the population growth in certain areas is definitely leading to rent growth. 

A lot more capital is now looking at Multifamily and cap rates continue to get compressed.

Despite ongoing material and labor shortages, apartment construction continued on pace this year, with more than 330,000 new rental units expected to be delivered coast to coast by year’s end. 💥

“These figures reflect the striking difference between the aftermath of the pandemic crisis and that of the housing crisis of 2008: In 2021, there were nearly three times more apartments under construction than there were in 2011,” according to a new report from RentCafe.

The amount of new deliveries, as estimated by Yardi Matrix, represents just a 2.5% decrease in new units over 2020 figures. That’s a decent pace under the circumstances, according to Yardi’s Doug Ressler.

👉This is some amazing news considering the facts, what are your thoughts about this?

👀Multifamily real estate was relatively resilient during the 2020 recession, with a smaller drop in investment volumes than most other mainstream asset types. The sector’s investment appeal was characterized by its solid market performance, with low vacancy rates and high rental collection rates. Despite the negative impact of lockdown measures and remote working arrangements on many urban/CBD properties, investment volumes remained strong in H1 2021, with increased pricing in many regions.

👉We expect declining vacancy rates over the next 12 months, which will lead to solid rent growth. The urban core submarkets that were most affected by COVID likely will recover steadily as more workers return to the office. We also expect further cap rate/yield compression as the appetite for multifamily investment rises globally.

Source CBRE

What are your thoughts on this?

Are you thinking is Investing in Multifamily Real Estate? Make sure you are on the right path by considering the following:

💲Find rental properties in emerging neighborhoods

💲Diversify your investments considering investments in other states and cities

💲Nip maintenance issues in the bud before they get bigger

💲Leverage the experts

💲Get to know your market

💲Treat your investments like a business it requires planning, execution, and management

💲Count on vacancies

💲Know your tax laws

👉It always seems impossible, until is done!💥

💥In the second half of 2020 and the first half of 2021, roughly 363,000 rentals were delivered. Marcus & Millichap says this was the largest completion volume over a four-quarter stretch in at least two decades.

The deliveries weren’t uniform throughout the nation. In fact, almost one-third of US deliveries were in seven metros, each of which gained more than 10,000 units.

Two metros exceeded the 20,000-unit threshold. 👉Dallas-Fort Worth led the way, adding 27,700 apartments. 👉Houston was next with 20,200 new apartments. Another Texas market, Austin, also added more than 10,000 units. Other Sunbelt markets, including Atlanta, Phoenix, and Charlotte, also added markets at a fast clip.

The national vacancy rate in central business districts peaked at 6.3% at the end of last year but has since settled to 5.2% in June 2021, according to Marcus & Millichap. While that rate is down ten basis points year over year, it is still 100 basis points higher than it was in 2019.

👉Are looking to build any #Multifamily properties?

With this being your first syndication I would try and find an experienced deal sponsor to partner with. This will allow you to get the best terms on debt and also give you the opportunity to learn from them. As far as the fund I would suggest starting with a single deal specific syndication first before starting a fund. Definitely reach out to an sec attorney to find out the differences and which route would be best for you.

I had a great time at the event and it awesome getting to meet so many new investors.

If you’re a #Multifamily property owner, you may reach a point where you’ll have to weigh your roof repair and replacement options. While repair may seem like the budget-friendly choice, it’s not always the most cost-effective one.

Make sure you hire a team of professionals who have the expertise and professionalism to handle your projects.🙌

👉Take a look at these tips and let me know your thoughts, this is mainly for sloped roofs.

With a roof that’s fairly new (less than ten years old) without a history of repair issues, it usually makes sense to go with repairs. An exception would be extensive storm damage that goes beyond the surface and affects multiple areas.

The most common repairs performed on roofs include:

1. 90-95 percent occur around flashing
2. Blown- Off or loose shingles
3. Ponding water due to insufficient protective measures
4. Punctures or penetrations relegated to a single area

Shingles that are curling upwards may mean there are leaks underneath the surface or that water is getting into parts of a roof where it shouldn’t be going. roofs with curled shingles often need to be replaced within 1-5 years.

Complete replacement is typically recommended when:

1. Damage extends below a roof’s surface layer
2. Repairs are becoming increasingly frequent
3. Bald spots are showing up where granules( materials that provide added protection to a roof) are missing
4. A roof is more than 20- 25 years old or has undergone too many re-roofs to make re-roofing a safe option again
5. An existing roof was poorly installed or not installed according to code

Roof replacement doesn’t necessarily mean completely tearing off an existing roof and starting over from scratch. If there are no problems with your roof deck and no signs of other issues with your roof’s structure other than worn or damaged roofing materials, a roof restoration or overlay may be recommended. This is where you would install the new roofing over the existing. However, you want a professional to inspect the roof and determine that its a good fit for this.

A new report from Apartment Guide has found that 36% of apartment residents are unhappy with the amenities in their current apartment building. Apartment residents noted a need for more storage space (31%); a dishwasher (16%); better Wifi (16%); parking (15%); central heating and air conditioning (11%); and in-unit laundry (11%).

Renters are willing to pay more for these amenities. Four in 10 or 38% of survey respondents said they would pay $100 or more for a new living amenity. Residents in large cities would pay even more, valuing an amenity at $202 per month.

A survey of 2,000 apartment residents from Package Concierge found that half of the renters have revised their outlook on amenities due to the pandemic. Package management systems, smart home devices including temperature control and digital locks, gym and recreation sports facilities, outdoor kitchen and dining areas, and pet services were the most in-demand amenities listed in that survey. In addition, 91% of respondents said that these amenities played a role in their apartment search.

👉 Which amenities do you think will bring the most #ROI to your property?

Signs are part of the image of a property. Whether our clients are designing/building from scratch or renovating an existing property, they find successful projects incorporate signage into the branding strategy of a property, rather than just considering signage a small component of the construction process.

1. CONVEY LUXURY STATUS AT ENTRANCE

Designing a sign that complements the architecture on the rest of the property is important, and the opportunity exists to enhance first impressions by investing in luxurious features in your entrance signage.

2. FOLLOW TRENDS IN COLOR & DESIGN

Keeping up-to-date signage as part of a property’s branding can help offset the perceived “aging” process that properties experience.

3. SHOWS ATTENTION-TO-DETAIL

So although detailed signage on the property does not paint the whole picture, it is a strong indicator of how much care is placed in a property’s construction & maintenance.

4. ENHANCES THE FEELING OF “COMMUNITY”

A professionally designed wayfinding system will help a community navigate safely & efficiently through the various spaces. It can also help community members more regularly engage with the various amenities in your community, which also helps build retention.