SAVVY INVESTORS WILL INVEST
MORE TRANSACTIONS AND FORECLOSURES
2024 will be the year when more people truly understand macroeconomics! I know that doesn’t sound too exciting, but all too often in real estate, we focus on rates, price and cap rates. However, these are usually factors that react to something larger. MACROECONOMICS WILL LEAD STRATEGY The results of 2024 will lie within the investors’ ability to understand unemployment, wage deceleration and underlying demand (not necessarily the demand that exists just because there is little supply, but rather the demand that entices people to buy, rent or invest). The successful investors of 2024 will be the ones who understand the workings of the broader economy to wisely tweak and stay ahead in their investment strategy!
It’s THE time for RRR. RIGHT time. RIGHT asset. RIGHT financing. Headlines will attempt to make 2024 seem like a risky year to invest, but the savvy apartment investor understands natural real estate market cycles, will ignore the news, remain grounded in the story the numbers tell, and make huge strides in growing their portfolios with positive impact on communities. The Fed will lower interest rates modestly, but it’s a token gesture towards a deeper problem. Distressed notes will continue to rise in the shadows, rarely making headlines unless beneficial to someone’s presidential campaign. Smaller banks will be trying to quietly offload distressed notes presenting a tremendous opportunity for investors to build alliances with banks and strategically acquire apartments.
Property transaction volume will see a significant uptick as interest rates soften and properties faced with expiring debt, coupled with higher-than-expected taxes and insurance bills will encourage sales. We haven’t seen the last of the foreclosures, so opportunities will still exist to capitalize on properties for a significantly reduced rate. Capital has been sitting on the sidelines for months now and needs to find a home, which will push cap rates to kickstart a more competitive marketplace than we have seen in the past year. Finally, operations will continue to be the focus. Firms that focus on operations, both ownership groups and pm companies, will be busier than ever as demand for good operators will finally be recognized.
UNDERSTAND UNEMPLOYMENT, WAGE DECELERATION AND UNDERLYING DEMAND.
SMALLER BANKS WILL BE TRYING TO QUIETLY OFFLOAD DISTRESSED NOTES.
OPERATIONS WILL CONTINUE TO BE THE FOCUS.
Jason Kogok Luxury Movers Real Estate Author of Plug the Holes, Fill the Barrel Connect with Jason
Julie Holly Founder and Investor Three Keys Investments Connect with Julie
Ashley Wilson Co-Founder of Bardown Investments and Apartment Addicts Connect with Ashley
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