Distress + Opportunity

Be greedy when others are fearful.
Be fearful when others are greedy.

~Warren Buffett

Buffett has lived by the above words for decades. He learned this approach from his mentor, Benjamin Graham.

Distress Leads to Opportunity

And now, those of us who invest in large multifamily properties will soon have a chance to apply the Buffett quote. The multifamily real estate market is showing early signs of distress. Fear and opportunity are in the air.

Farmers who plow and plant their fields in preparation for rain can look to the approaching storm clouds in celebration, not fear.

Signs of Distress?

If you want further insights on today’s distressed market, check out this 24-minute video by James Eng. Eng leads a team of mortgage brokers at Old Capital, based in Texas. His presentation outlines the signs and the opportunities.

Next Steps

The commercial/multifamily real estate business thrives on deals and dollars. We need properties to run, investors with capital, and lenders to round out the capital stack.

If you’re a syndicator, now’s a great time to strengthen relationships with brokers, sellers, lenders… every person that you need on your team to get a deal done.

If you’re a passive investor, take a good look at the syndicators that you’re dealing with. Which ones are in the best position to handle the upcoming storm?

Opportunity is here. Those who execute wisely will thrive.