Multifamily Market's Future Growth

Unveiling the Market's Secrets from Behind the Scenes

Author

Nuvo Capital
July 25, 2024

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"Although new supply is at a nearly 40-year high, that headwind will be short lived, and is typically located in areas with high demand. That will cause multifamily performance to remain subdued this year, but over the longer term, the multifamily market appears primed for growth due to an overall shortage of housing, an expensive for-sale housing market and favorable demographic tailwinds.”

-Sara Hoffmann, Multifamily Research Director at Freddie Mac

Recent Multifamily Sales (Click to view details)

Recent Multifamily Loans (Click to view details)

Question:

What are some common mistakes to avoid when investing in multifamily real estate?

Answer:

Common mistakes to avoid when investing in multifamily real estate include underestimating repair and maintenance costs, which can lead to unexpected expenses and reduced profitability. Another mistake is failing to conduct thorough due diligence, such as neglecting to verify the accuracy of financial statements, inspect the property condition, or research local market trends. Additionally, overleveraging by taking on too much debt can increase financial risk, especially if the property fails to generate sufficient income to cover loan payments.

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2024 Midyear Multifamily Outlook

Have we turned the corner yet on the market? Mike Donnelly, part of the Multifamily Research team and author of the 2024 Midyear Multifamily Outlook report joins our co-hosts to help answer this question. Together, they break down how the economy performed in the past six months, how high supply is impacting markets across the country and the forecasted origination for the year.

Quiz of The Week

What does "Depreciation" refer to in real estate investment?

a. The increase in property value over time

b. The allocation of the property's cost over its useful life

c. The deduction of property taxes from rental income

ǝɟᴉʅ ʅnɟǝsn sʇᴉ ɹǝʌo ʇsoɔ sˌʎʇɹǝdoɹd ǝɥʇ ɟo uoᴉʇɐɔoʅʅɐ ǝɥꓕ ·q

Random Tip of the Week

🧰 Provide Clear Due Diligence Materials - Prepare comprehensive due diligence materials that investors can review. This includes financial statements, legal documentation, market research, and any other relevant information. Offering well-organized and transparent due diligence materials helps build investor confidence and streamlines their decision-making process.

Current Rates (Weekly Update)

10-Year Treasury - 4.24% (⬆️.08%)

Fed Funds Rate - 5.33% (0%)

1-Month Term SOFR - 5.34% (⬆️.01%)

About Nuvo Capital Partners

Nuvo Capital Partners is a niche market-focused multifamily investment platform operating throughout the Southeastern United States. As a dedicated sponsor (General Partner), we specialize in institutional quality real estate investments within these regions. Our team comprises industry professionals with 25+ years of combined experience, ensuring expertise and market knowledge. We pride ourselves on offering a transparent investment process, providing our investors with access to high-quality real estate opportunities while upholding integrity throughout.

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