Latest / Own More Doors / #36 2025 Multifamily Market Outlook: Pricing, Rates, Inventory & Opportunities

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#36 2025 Multifamily Market Outlook: Pricing, Rates, Inventory & Opportunities · Own More Doors

• 0:00
  SPEAKER_00: What's up, everyone?
• 0:01
  SPEAKER_00: Juan Weizar here with the Own More Doors podcast.
• 0:04
  SPEAKER_00: This specific episode was first shared on our YouTube channel, Sage Real Estate.
• 0:08
  SPEAKER_00: Check it out.
• 0:09
  SPEAKER_00: And we're excited to bring it to you here.
• 0:11
  SPEAKER_00: If you're someone who follows or is an investor and consider yourself a multifamily investor, I want you guys to tune in today.
• 0:18
  SPEAKER_00: We're going to give you the 2025 what to expect in multifamily.
• 0:23
  SPEAKER_00: Hi, I'm Juan Weizar.
• 0:24
  SPEAKER_01: And I'm Cody Charnell.
• 0:26
  SPEAKER_00: And we're going to do a deep dive on what we're seeing, trends, some of the interviews that we're having with investors out there, and what you could expect out of 2025.
• 0:34
  SPEAKER_00: So Cody, let's let's get right into it.
• 0:37
  SPEAKER_00: So um pricing.
• 0:40
  SPEAKER_00: What's going to happen with pricing in 2025 when it comes to multifamily?
• 0:45
  SPEAKER_00: And we could go five plus, we could go forward four and under wherever you want to start.
• 0:50
  SPEAKER_01: So I think it does depend on what category of the market you're talking about.
• 0:54
  SPEAKER_01: So five unit and up properties, you know, they were hit the hardest over the last year, two years on pricing.
• 1:02
  SPEAKER_01: That's because we saw rates increase and down payment requirements increased.
• 1:07
  SPEAKER_01: So I think for five unit and up buildings, we're we're still in somewhat of a buyer's market.
• 1:13
  SPEAKER_01: You know, there's not a ton of inventory out there, but the inventory that is on the market, it's hard to make it pencil.
• 1:22
  SPEAKER_01: So you're having to come in with 40% down in a lot of cases.
• 1:26
  SPEAKER_01: And there's just not a ton of buyers who are motivated to do that.
• 1:29
  SPEAKER_01: So, you know, those sellers are having to be realistic about pricing if they want their building to move.
• 1:36
  SPEAKER_00: So what we've seen when it comes to pricing, year over year, we've seen the cap rate goes up.
• 1:42
  SPEAKER_00: So if you guys have been watching our channel, you know that as the cap rate goes up, then naturally the value is going to come down.
• 1:48
  SPEAKER_00: And so I would imagine this year, when it comes to pricing, that we might still continue seeing slight sensitivity.
• 1:56
  SPEAKER_00: So we might see a slight drop in the five plus market.
• 2:01
  SPEAKER_00: When it comes to the four plus market, we've seen less of a discount.
• 2:06
  SPEAKER_00: And a lot of that has to do with the fact that it's uh long-term financing, 30-year financing.
• 2:12
  SPEAKER_00: A lot of that has to do with some investors when they're buying a four-unit building or something smaller, they're less sensitive to return cap rates and that type of stuff.
• 2:23
  SPEAKER_00: And so in some cases, I don't want to call them less sophisticated.
• 2:26
  SPEAKER_00: That's that's a bad word, but they're sophisticated enough to know, hey, invest in rental income.
• 2:32
  SPEAKER_00: It's gonna go up in value.
• 2:32
  SPEAKER_00: So that to me shows a lot of sophistication, but um they're less sensitive to to cap rates.
• 2:37
  SPEAKER_00: And so in 2025, if someone comes to me, I'm gonna say, hey, the four plus market, we're probably not gonna see much of a drop anymore in terms of pricing.
• 2:45
  SPEAKER_00: I think we're there, I think it's moving.
• 2:46
  SPEAKER_00: Um, and when it comes to the five plus, we still might see a little uptick when it comes to cap rates.
• 2:52
  SPEAKER_00: And again, if cap rates go up, then we're gonna see a slight drop.
• 2:55
  SPEAKER_00: But one thing to know is that the market in 2024 did increase by 40% within the five to 20 units.
• 3:05
  SPEAKER_00: And so the market is picking up.
• 3:07
  SPEAKER_00: And so naturally, if prices drop, investors are gonna get off the sidelines.
• 3:11
  SPEAKER_00: And so I think we're gonna see, in terms of pricing, I think we're gonna have um a lot of investors coming out.
• 3:17
  SPEAKER_00: And I think we're already seeing it, Cody.
• 3:19
  SPEAKER_00: I mean, a lot of our clients are submitting offers and they're kind of excited of what's of what's happening and their and their um consumer confidence is definitely up.
• 3:27
  SPEAKER_00: Um, let's move on to interest rates.
• 3:29
  SPEAKER_00: Tell us, tell us what you're seeing out there, Cody.
• 3:32
  SPEAKER_01: So for interest rates right now, I'm seeing for investors who are buying two to four units just with investment financing, so they're not going to own or occupy it.
• 3:41
  SPEAKER_01: Rates are still hovering in the sevens, like low high sixes, low sevens.
• 3:46
  SPEAKER_01: Um, when you're in the five unit and up space, we're looking at high sixes right now.
• 3:51
  SPEAKER_01: A lot of people were expecting rates to be lower than they are right now.
• 3:55
  SPEAKER_01: So I guess moving forward throughout 2025, rates will dictate a lot of what happens with pricing.
• 4:03
  SPEAKER_01: You know, if we get a decrease in rates like a lot of people were expecting last year, um, we could see pricing improve.
• 4:11
  SPEAKER_01: It seems less likely that that's going to happen now.
• 4:14
  SPEAKER_00: Yeah.
• 4:15
  SPEAKER_00: I would say right now, the investors that we're working with, if the price is right, and and again, we just covered pricing, pricing, pricing has dropped.
• 4:24
  SPEAKER_00: If the pricing's right, they're not happy with the interest rate, but they're willing to settle for that knowing because a lot of people try to make the money on the purchase.
• 4:35
  SPEAKER_00: So so long as you get a good purchase price, and you know, if you're working with the right broker, you should get the right purchase price.
• 4:40
  SPEAKER_00: And so long as you get the right purchase price, maybe the interest rate's not what you want, but that's something that could be uh refinanced down the road.
• 4:48
  SPEAKER_00: And again, we don't we don't have the crystal ball, we don't know exactly, hey, is it the second quarter, the third quarter?
• 4:54
  SPEAKER_00: We would expect and we do expect interest rates to drop.
• 4:56
  SPEAKER_00: I think we both agree on that.
• 4:58
  SPEAKER_00: Uh, we just don't know exactly when.
• 5:01
  SPEAKER_00: Um, let's go into let's go into the the upgrades and and what we're seeing in the current transactions, what what is happening and and kind of what's put pushing the strain on both buyers and sellers right now.
• 5:18
  SPEAKER_01: Yeah, so the the big thing is insurance.
• 5:21
  SPEAKER_01: So over the last several years, we've seen a lot of carriers leave California because they can't increase rates enough to be profitable.
• 5:29
  SPEAKER_01: And then with the recent fires in LA, I think it's just adding more fuel to that fire.
• 5:34
  SPEAKER_01: So, what what insurance carriers want now is if you're buying a building or renewing a policy, they ask you if your major systems have been upgraded within the last 30 years.
• 5:45
  SPEAKER_01: So that's roof, plumbing, electrical panels, wiring, and your HVAC systems, so like gas wall heaters.
• 5:54
  SPEAKER_01: So it's come up in a lot of escrow's where you know a building has old electric panels, old wiring, old plumbing, and buyers are a lot more sensitive to those things now.
• 6:05
  SPEAKER_01: So we're seeing more negotiation on on those parts of the deal.
• 6:11
  SPEAKER_01: And, you know, it's something that just has to be done now so that someone can get an insurance policy that's reasonable.
• 6:18
  SPEAKER_00: You know, we were fortunate enough to earn the business of a lot of apartment owners out there.
• 6:23
  SPEAKER_00: And when we list a property, the first thing we do is if we're able to get on the roof, we want to go see the roof.
• 6:30
  SPEAKER_00: We definitely want to look at the electrical meters and then we look at the water spigots to see if it looks like it's copper.
• 6:36
  SPEAKER_00: Any indication so that because we're in a position, whether we're representing the buyer or the seller, we need to know somewhat of the of the conditions of the major systems.
• 6:47
  SPEAKER_00: And so definitely when we list a property, we want to know a lot of times sellers don't know, and that's a problem.
• 6:52
  SPEAKER_00: Um, and then also when we're representing a buyer and we submit the offer, these are questions we're always gonna ask, we're gonna try to visually see for ourselves.
• 7:02
  SPEAKER_00: And so this is some of the preliminary work that we do from the very beginning.
• 7:05
  SPEAKER_00: One thing that we're doing now that we never did, we could delay getting insurance until we're about to close the escrow.
• 7:12
  SPEAKER_00: Now we are insurance hunting from day one because a lot of times the quotes are all over the map.
• 7:19
  SPEAKER_00: If you're lucky enough to get people to say, yeah, we'll insure it, if you're lucky enough, and even that's a problem, sometimes that that premium is big difference.
• 7:31
  SPEAKER_00: And so we are now proactively working with different brokers.
• 7:35
  SPEAKER_00: Some have gone away, some are too busy to take our call, which is a reality.
• 7:39
  SPEAKER_00: And so this is something that when we we get someone in escrow, or even when we're on the listing side, we remind the other agent get started on this right away.
• 7:48
  SPEAKER_00: We don't want this to be an issue right before it closing.
• 7:51
  SPEAKER_01: Yeah.
• 7:52
  SPEAKER_00: Let's talk about inventory.
• 7:54
  SPEAKER_00: You know, a lot of times supply and demand, the more inventory, obviously that would drive the prices down.
• 7:59
  SPEAKER_00: There's it's a little more competitive.
• 8:00
  SPEAKER_00: What do you think is going to happen in 2025 when it comes to inventory?
• 8:04
  SPEAKER_01: I think we're going to see inventory continue to tick up.
• 8:09
  SPEAKER_01: So a lot of people refinanced in the five unit and up space back in 2021 when rates were really low.
• 8:17
  SPEAKER_01: A lot of those people had three-year or five-year fixed loans.
• 8:21
  SPEAKER_01: So if you refinanced in 2021, your rate is going to adjust in 2025.
• 8:26
  SPEAKER_01: And it could go from you know low threes up to high sixes, which it's a big hit for a lot of people.
• 8:33
  SPEAKER_01: So I think we'll see some of those people start to make decisions on whether they want to keep the building or not.
• 8:38
  SPEAKER_01: That that's the main thing that I'm thinking about.
• 8:40
  SPEAKER_01: What are you seeing?
• 8:41
  SPEAKER_00: Yeah, so I'll start with the four-plex market.
• 8:44
  SPEAKER_00: We've already been seeing a trend for the last couple of years, inventory's up.
• 8:47
  SPEAKER_00: And so it could be now, I think that what's there's a lot of things happening here.
• 8:53
  SPEAKER_00: Is if you're a housing provider and you own, say, a four-unit building, every year they make it.
• 9:01
  SPEAKER_00: There's laws that are passed every single year that are not in your favor whatsoever.
• 9:06
  SPEAKER_00: And I don't blame these owners, they get fed up.
• 9:10
  SPEAKER_00: And because of that, they call us, will you come look at my building?
• 9:13
  SPEAKER_00: I'm thinking it's time to sell.
• 9:15
  SPEAKER_00: And so we are seeing an uptick in inventory in the fourplex market.
• 9:18
  SPEAKER_00: We're also seeing an uptick in inventory when in the five plus market.
• 9:23
  SPEAKER_00: And a lot of that is people who have insurance.
• 9:27
  SPEAKER_00: Well, that insurance has in some cases been canceled.
• 9:32
  SPEAKER_00: And then they need to go find new insurance at a much higher price.
• 9:35
  SPEAKER_00: And now, to what we keep saying is now they want you to upgrade the electrical and the roof.
• 9:41
  SPEAKER_00: Not to mention the fires that that that are currently still happening and the the ultimate ramifications on what's going to happen there on the insurance costs, they're going to continue to go up.
• 9:53
  SPEAKER_00: A lot of owners are thinking, okay, it's getting more and more expensive to own and manage the properties the way that I want to do it.
• 10:04
  SPEAKER_00: The costs are getting much higher.
• 10:06
  SPEAKER_00: We do expect construction, construction costs are going to go up, and a lot of that's going to have to do with the fires.
• 10:12
  SPEAKER_00: I think a lot of contractors are going to be very busy and it's going to be hard to get them.
• 10:15
  SPEAKER_00: And if you get them, it's going to come at a cost.
• 10:17
  SPEAKER_00: That's just the way that it works.
• 10:18
  SPEAKER_00: Material cost is going to go up.
• 10:21
  SPEAKER_00: We are going to see a lot of people thinking, well, I wanted to wait until the market to get better.
• 10:27
  SPEAKER_00: I wanted the value to be higher.
• 10:28
  SPEAKER_00: But at this point, I feel like I'm being choked.
• 10:31
  SPEAKER_00: I'm being choked from all sides.
• 10:33
  SPEAKER_00: Um, in some cities, they're they're trying to stop rental increases under the premise that they're protecting people from the fire, which is really not the case.
• 10:43
  SPEAKER_00: They're simply punishing what I call the small mom and pop independent apartment owners, which is completely unfair.
• 10:49
  SPEAKER_00: But these these factors all come into play.
• 10:53
  SPEAKER_00: And a lot of the people who bought 30 years ago that they bought with the intention of it's going to allow me to retire.
• 11:00
  SPEAKER_00: Hopefully, it goes up in value, and hopefully I get cash flow.
• 11:04
  SPEAKER_00: And man, I hope I choose the right tenants who I take care of them.
• 11:07
  SPEAKER_00: They take care of my building, and it's kind of this mutual thing.
• 11:10
  SPEAKER_00: And some of them are now thinking it's time to get out.
• 11:13
  SPEAKER_00: And these things, listen, I'm sitting and I'm talking to these folks, and we're having these conversations, and I know what they tell me, and I hear the same thing over and over and over again.
• 11:22
  SPEAKER_00: One, it's too hard.
• 11:24
  SPEAKER_00: It's getting too hard.
• 11:25
  SPEAKER_00: They keep passing laws, it's getting too expensive, and I'm not allowed to raise my rents.
• 11:29
  SPEAKER_00: That's a problem.
• 11:30
  SPEAKER_00: So you're probably gonna see now, some people might be watching this video and say, well, if inventory goes up, hopefully you and Cody get more listings.
• 11:37
  SPEAKER_00: Yes, of course, that might be a good thing.
• 11:39
  SPEAKER_00: That's not necessarily what we're hoping for, but that's a reality.
• 11:43
  SPEAKER_00: I do expect more and more people to kind of say, Hey, I'm I'm done, list my property.
• 11:48
  SPEAKER_00: I wanted more, but I hear what you're saying.
• 11:51
  SPEAKER_00: Cap rates are up and the value may not be where it's gonna be.
• 11:54
  SPEAKER_00: Now, even those people, although given everything that I've said, even those people are gonna, they're gonna be fine.
• 12:03
  SPEAKER_00: They're they're gonna be selling at a profit.
• 12:04
  SPEAKER_00: They bought it for much, much lower.
• 12:06
  SPEAKER_00: And so that's on the selling side.
• 12:08
  SPEAKER_00: Cody, if someone hears, watches this video and says, man, Juan, I don't know that I want to own, why are people continuing to buy?
• 12:15
  SPEAKER_00: Given everything that I've said, that really gives it a black eye.
• 12:18
  SPEAKER_00: Why would someone, why do you still have clients that want to work with you and want to continue buying?
• 12:23
  SPEAKER_00: What is it that's just still keeping them in the game?
• 12:26
  SPEAKER_01: So there's still very strong rental demand here in Southern California.
• 12:30
  SPEAKER_01: We just saw a bunch of properties get wiped out by fires.
• 12:34
  SPEAKER_01: So inventory is getting more scarce.
• 12:36
  SPEAKER_01: It's still difficult to build.
• 12:38
  SPEAKER_01: So I think people see all of those factors and they see, okay, if I'm able to buy housing that's existing and hold on to it, there's gonna be demand from renters.
• 12:47
  SPEAKER_01: I know inflation is going to erode away the value of whatever loan I have, and I'm going to make money long term.
• 12:54
  SPEAKER_01: There's also still great tax benefits that a lot of people are taking advantage of.
• 12:57
  SPEAKER_01: So, you know, if you can get past these hurdles and just hold on, real estate's gonna do really well for you.
• 13:04
  SPEAKER_00: You know, one of my favorite quotes, and I've shared it with you guys also, maybe you're getting tired of it, but it's not get rich quick, it's get rich guaranteed.
• 13:11
  SPEAKER_00: It's still very much the case.
• 13:13
  SPEAKER_00: And so people will call us and say, Yeah, but there's statewide rent control.
• 13:16
  SPEAKER_00: Yeah, but insurance costs is too high.
• 13:19
  SPEAKER_00: Yeah, but I'm not allowed to raise the rents like I used to.
• 13:23
  SPEAKER_00: Given all that, what Cody just said is that we do not have enough housing.
• 13:28
  SPEAKER_00: Housing is one of the the basic necessities that anyone's gonna need.
• 13:32
  SPEAKER_00: And so when you buy an apartment building, and and we've always been long-term, we've never said this is a get rich thing.
• 13:39
  SPEAKER_00: We we say you gotta buy, you gotta hold, you gotta improve because we wanna make these assets better, we want to provide better housing.
• 13:46
  SPEAKER_00: Um, you know, that's the right thing to do.
• 13:49
  SPEAKER_00: But should there be a payoff at the end?
• 13:51
  SPEAKER_00: 100%.
• 13:52
  SPEAKER_00: There's a lot of risk.
• 13:53
  SPEAKER_00: There's a lot of risk that you're taking.
• 13:55
  SPEAKER_00: You could sit back and do nothing, but then housing doesn't get better.
• 13:59
  SPEAKER_00: Housing gets better when it trades hands because the new buyer will make it better.
• 14:04
  SPEAKER_00: The old buyer, like anything else, you wear down the old shoes and you're done with them.
• 14:10
  SPEAKER_00: And so that's kind of why we need uh multifamily to continue trading.
• 14:14
  SPEAKER_00: And so is it still a good investment?
• 14:16
  SPEAKER_00: 100% Cody, Cody and I are still trying to purchase.
• 14:22
  SPEAKER_00: Cody just purchased a fourplex this week.
• 14:25
  SPEAKER_00: Why?
• 14:25
  SPEAKER_00: Because he believes in the future.
• 14:27
  SPEAKER_00: He also has a young family and he's thinking, geez, at some point I want to be able to leave a nest egg for my family.
• 14:33
  SPEAKER_00: And so those are still the same motivations.
• 14:35
  SPEAKER_00: And it's interesting because a lot of people that we work with, you know, the sellers have have owned for 30 years and they they squeeze the juice out of that lemon.
• 14:46
  SPEAKER_00: And what happens in real estate is then you get a new crop of most times younger people or the next generation who want to do the same thing.
• 14:54
  SPEAKER_00: And just because someone squeezed the the juice out, uh, in the world of real estate, somehow that juice is replenished through the years, and then you could you get to do the same.
• 15:04
  SPEAKER_00: And on top of that, you get to provide housing, and hopefully you do a good job if it's a housing provider.
• 15:09
  SPEAKER_01: Yeah.
• 15:09
  SPEAKER_01: And and something else, some good news is there was there's ways to add value now that you couldn't in previous years.
• 15:17
  SPEAKER_01: So ADU laws have opened up, and just this year, SB 1211 went into effect, which is probably the most dramatic ADU law of all.
• 15:26
  SPEAKER_01: Basically, it allows you to double the number of units you have on a lot up to eight.
• 15:32
  SPEAKER_01: So if you have an eight-unit building, you can build eight freestanding ADUs, and you can also still do garage conversions on top of that if you have garages available.
• 15:42
  SPEAKER_01: So that's a big value add play that a lot of my clients are looking at now.
• 15:47
  SPEAKER_01: So um I think you know, just being creative, um, seeing where you can add value, uh that's the real key for picking the right buildings and picking the right investments right now.
• 16:00
  SPEAKER_00: It's um eight building buying a property, building ADUs, as many as you can, okay.
• 16:06
  SPEAKER_00: Um doing Airbnb.
• 16:10
  SPEAKER_00: Airbnb is a great way, not with all the units, but every city is going to be different.
• 16:14
  SPEAKER_00: And they might allow just one or 25% of the of the units and even midterm rentals.
• 16:19
  SPEAKER_00: There are different ways that are being offered to us now that 10 years ago this didn't exist.
• 16:25
  SPEAKER_00: ADU's definitely being one of them.
• 16:27
  SPEAKER_00: And so that's a great way.
• 16:29
  SPEAKER_00: It's that keeps getting better.
• 16:32
  SPEAKER_00: It's allowing people to continue to build new housing.
• 16:38
  SPEAKER_00: And out here in Southern California, if you if you're in the rental market and you need to go rent something to get new construction, it's almost unheard of.
• 16:46
  SPEAKER_00: There's just not an but but you can if you're renting an ADU.
• 16:50
  SPEAKER_00: And it's it's interesting, Cody, and I and I've never liked this.
• 16:53
  SPEAKER_00: You have an ADU and we call it an ADU.
• 16:55
  SPEAKER_00: To me, it's not an ADU, it's a house.
• 16:58
  SPEAKER_00: It looks like a house.
• 17:00
  SPEAKER_00: Even if it's a garage conversion, it's now a house.
• 17:02
  SPEAKER_00: They still call it an ADU.
• 17:03
  SPEAKER_00: It's it's almost like somehow they're discrediting it, but it's built with the same with the same materials that a house has built.
• 17:10
  SPEAKER_00: Somehow we still call it ADUs, but they're actual nice brand new dwellings, and which is a very big plus.
• 17:16
  SPEAKER_00: And so uh for a lot of investors, as we're looking at properties, that is one of the best ways to add value because it improves the the overall income and the return on the property.
• 17:27
  SPEAKER_00: And so that's a terrific way.
• 17:28
  SPEAKER_00: So there you have it.
• 17:29
  SPEAKER_00: Uh Cody, any final thoughts for 2025?
• 17:33
  SPEAKER_00: What advice do you have for buyers?
• 17:34
  SPEAKER_00: What advice do you have for sellers?
• 17:37
  SPEAKER_01: I would take inventory of what you have if you're an owner, check on the major systems of your building, know where you stand with insurance companies, and start thinking about what levers you can pull, how you can add value, if it makes sense to exchange maybe into a new construction building.
• 17:56
  SPEAKER_01: Or, you know, some people who are older who may not want to do that, start thinking about creative ways to get out.
• 18:02
  SPEAKER_01: So whether it's through seller financing, whether it's exchanging into a fund where you can be kind of a passive owner, those are all great things to consider.
• 18:12
  SPEAKER_01: And then if you're a buyer, get in contact with us.
• 18:14
  SPEAKER_01: We want, we want to help you understand the market so you can make moves that are gonna work in 2025.
• 18:21
  SPEAKER_00: Perfect.
• 18:22
  SPEAKER_00: Um, my advice if you're an owner, and let's just say you're an owner that's fed up, reach out to us.
• 18:29
  SPEAKER_00: Uh, we're not gonna sell you anything, but I think it's important that you know what is the realistic value.
• 18:34
  SPEAKER_00: We're gonna give you the realistic value.
• 18:36
  SPEAKER_00: We're not gonna give you this dream value just because we want to get the listing.
• 18:39
  SPEAKER_00: That's not what we want.
• 18:40
  SPEAKER_00: We'll tell you this is what it's worth today, and maybe what it's worth today is perfectly acceptable for you, and this is a perfect time to walk away.
• 18:48
  SPEAKER_00: Maybe it's not, and that's perfectly fine.
• 18:50
  SPEAKER_00: We're not gonna be hounding you to sell the building.
• 18:52
  SPEAKER_00: So if you're a seller, you need to know where do you stand?
• 18:55
  SPEAKER_00: Maybe the value is is where you thought, maybe it's even better.
• 18:59
  SPEAKER_00: So please reach out.
• 19:01
  SPEAKER_00: Free property valuation um there.
• 19:04
  SPEAKER_00: Now, if you're a buyer, I just told you values are down by 10 to 15 percent.
• 19:12
  SPEAKER_00: They're down by 10 to 15 percent.
• 19:14
  SPEAKER_00: Do you believe they're gonna go back up?
• 19:16
  SPEAKER_00: Do you believe that there's demand for rentals more now than ever before?
• 19:20
  SPEAKER_00: That's why you should buy because prices are down, and this is the time that you get in.
• 19:25
  SPEAKER_00: And if you think of, well, I'm gonna wait for interest rates to drop, that's a bad strategy because now you have more competitors competing with you.
• 19:34
  SPEAKER_00: Get in now, worry about refinancing later.
• 19:37
  SPEAKER_00: There's always a way to make that investment better.
• 19:41
  SPEAKER_00: Always.
• 19:41
  SPEAKER_00: No matter when we look at a property, Cody and I will go out there with you and say, this is what we would do to improve the income.
• 19:48
  SPEAKER_00: And the answer is not always raise the rent.
• 19:51
  SPEAKER_00: And that's not there's always a different way that we would look at it and say, if we make these changes, you can now offer more parking.
• 19:58
  SPEAKER_00: If we add laundry, the we're adding uh more value, therefore, that therefore you could ask for more rent because you've made it better.
• 20:05
  SPEAKER_00: And so I think this is a terrific time if you're an investor to get in.
• 20:10
  SPEAKER_00: I'll tell you right now that Cody and I are actively buying.
• 20:13
  SPEAKER_00: Uh, I'm currently selling a property, not because I want out, but because I want to trade that into something else, because I see the potential from a 1031.
• 20:20
  SPEAKER_00: I see the potential of buying more doors.
• 20:22
  SPEAKER_00: Okay.
• 20:23
  SPEAKER_00: So thank you for tuning in.
• 20:25
  SPEAKER_00: Hey, make sure you check out our ownmore doors.com.
• 20:30
  SPEAKER_00: We are doing a live summit.
• 20:32
  SPEAKER_00: Cody's gonna be there.
• 20:33
  SPEAKER_00: I'll definitely be there.
• 20:34
  SPEAKER_00: And if you want to meet us, this would be a perfect time for you to come out.
• 20:38
  SPEAKER_00: And it's gonna be a multifamily investor summit half day event here in Long Beach February 27th.
• 20:44
  SPEAKER_00: Sign up until next time!