Jan 19, 2025
1. 2024 Performance: Michael was disappointed with the
acquisition activity due to fluctuating interest rates and low
transaction volumes.
2. Market Conditions: The fundamentals were soft in 2024 with flat
to down rents, especially in Central Texas. Occupancy stabilized at
around 93% portfolio-wide by January 2025. Michael anticipates a
recovery in 2025, particularly in the second quarter when the
supply of new properties is expected to decrease significantly.
3. Example Deal: Michael described a deal in Dallas involving a
late 90s property bought for around $170,000 per door, with plans
to invest about $10,000 per unit for renovations. The property is
well-located with low rents compared to competitors and has a
value-add opportunity.
4. National Multifamily Housing Council (NMHC) Conference: The
conference is a major event for multifamily real estate
professionals, focusing on deal-making rather than education. It is
beneficial for networking and meeting potential equity partners,
though it may be overwhelming for newcomers.
5. Market Outlook: Michael expects higher occupancies and rent
growth in 2025 as the supply of new properties decreases. He also
notes that the current environment is challenging but sees a
generational buying opportunity in multifamily real estate.
6. Advice for New Investors: New investors should start as limited
partners to gain experience and recommends participating in
educational events like bus tours to understand the market
better.
Overall, the discussion highlights the challenges and opportunities
in the Texas real estate market, the importance of strategic
networking, and the potential for recovery and growth in the coming
years.
Are you interested in learning more about how Multifamily
Syndications work? Please visit SPIADVISORY.COM to understand
more about Michael Becker’s Real Estate Syndication business. If
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