A BOOMING YEAR FOR CASH INVESTORS
New Year’s will not only ring in the new year, but new capital. Both buyers and lenders typically allocate their annual funding in January, and with most coming into the new year carrying over idle capital from 2022, several people will be eager to find that capital a new home. I suspect this will push people to buy as long as a few solid deals can be found. If they’re lucky, they may even be able to capitalize on deals that were bought on prior risky debt! CAPITAL WILL BE ALLOCATED TO SOLID DEALS
INCREASE IN RENT DEFAULTS
2023 will be a booming year for buyers with cash. Interest rates will stabilize and are expected to be lowered in the second half of the year. We are expecting one of the best years in our business with the opportunities for people who have been on the sideline the last few years due to higher prices. Rents will continue to increase with the demand for multifamily units. After being in the real estate industry for more than 30+ years, real estate is still the best investment to acquire.
As more landlords raise rents now that rent freezes are over, my prediction is that many tenants will vacate their units and skip out on paying their past-due rent. I also predict that many tenants will move family and friends into their units without getting authorization from their landlord to help pay past-due and current rent. This means building in risk reduction into your leases, such as required rental property inspections and terms for adding new tenants to the lease.
REAL ESTATE IS STILL THE BEST INVESTMENT TO ACQUIRE.
MANY TENANTS WILL MOVE FAMILY AND FRIENDS INTO THEIR UNITS
PEOPLE WILL BE EAGER TO FIND THAT CAPITAL A NEW HOME.
Shiral Torres Owner of Simply Shiral Author of Rental Properties Made Simple Read Shiral’s Book
Ashley Wilson Co-Founder of Bardown Investments Author of The Only Woman in the Room Read Ashley’s Book
Pam Goodwin Founder of Goodwin Commercial Author of Winning Ways in Commerical Real Estate
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