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Today's Topics

According to a report by Gray Capital, over $8B in commercial mortgage-backed securities (CMBS) loans for multifamily properties are due in October and November. This means even more non-CMBS loans are due which likely means foreclosures or extensions. Multifamily owners in good standing and locations are having a better time refinancing (we just pulled $11.5M out of our Jacksonville apartment complex) but class C, first-time syndicators in markets with stunted rent growth are going to bear the brunt of this decline.

Takeaways: Even though we are in a housing crunch with historically high rents, the timing of this debt crisis couldn't be worse. Distressed owners who aren’t going to be able to refinance because of the higher down payment requirements are likely to going to find themselves competing with a sea wave of other sellers leading into the fall (so you should be looking now).

Despite the decline in the commercial sector, which lags behind single family residential, we are seeing the SFH market recover with Zillow predicting a 5% appreciation rate for 2023.

Takeaways: Across the country in 2021, there were roughly 8 million missing households – individuals or families living with non-relatives, potentially preferring to live on their own – compared to just 3.7 million housing units available for rent or for sale, a deficit of 4.3 million.

Fundamentally, we are still short in supply, even as demand decreases. Rules of thumb in this market:
1. Cashflow
2. Buy cheap

In the year-ending April 2023, apartment rents grew 3.2% across the nation’s 150 largest apartment markets, according to data from RealPage Market Analytics. However, Class A rents grew 3.9% in the year-ending April 2023, marking an outperformance of about 70 basis points (bps). However, in some Sun Belt markets – particularly in Florida – Class A rents were growing twice as fast as the market average as of April.

Takeaways: Rentals in good locations and higher end tenants are performing better in the Sun Belt. Not shown in the chart above is Phoenix, where Class A rent change technically outperformed the market average. However, with annual cuts on both a market-wide (-3.2% YOY) and Class A basis (-1.1% YOY), framing either as an outperformance seems generous.

📚 We're thrilled to present Amanda Han and Matthew MacFarland, the brilliant minds behind "The Book on Tax Strategies for the Savvy Real Estate Investor" and "The Book on Advanced Tax Strategies" from BiggerPockets. These two pivotal works were the spark that ignited SARE's very first virtual webinars back in 2020, as well as led to our endless SARE Dating for Real Estate Professional (REP) insider jokes. Amanda and Matt will be unveiling some of their standout client case studies at SARECon for their presentation on “Real Estate Tax Strategies to Supercharge Your Wealth-Building.”

🎉 Get ready for the thrill of the year! The SARECon Pre-Launch Party is about to set the stage on fire. Sponsored by our SARE Texas powerhouses - Big Daddy Khai Nguyen (Absolute Mortgage & Lending), Christine Chau (Firsthand Properties), and Michael & David Seeto (Seeto Realty), this is an event you don't want to miss. With only 100 tickets available at an undisclosed location, it's as exclusive as it gets. RSVP now to secure your ticket. Our Texas Crew will be in touch to confirm your spot. Mark your calendars for Friday, July 28th at 7PM. Expect an evening filled with great friends, food, drinks, entertainment, and prizes. Can’t wait to show y’all how the Texans party! Limited to 1 ticket per registration. Tickets will absolutely run out.

*This event is limited to those who have a SARECon ticket. Pick up your ticket today!

The next two SARE Ladies podcasts guests will be presenting at SARECon this year! Let’s get a head start to hear their story and how they got into real estate!

🎧 S2 E14 | There are a few types of real estate investment assets out there as bulletproof and hands-off as Industrial Real Estate. Hear from Amanda Brown, Director of Investor Relations at MAG Capital Partners on why this is the investment you need to know as your hands-off bulletproof investment solution.

🎧 S2 E13 | Unlock the potential of California’s Real Estate Market with Ryan Chaw as he reveals why student housing is the golden ticket for investors. Don’t miss out on this expert's guidance for securing stable, high-demand investments. Tune into the new #SARELadies podcast episode “Why the Secret to California Investing is in Social Housing” for expert insights and strategies.

Why Do You Need an Operating Agreement?
THU, JUL 20

How Do Taxes Work for Syndications & Out of State Rentals?
THU, AUG 31

Here's the full list of recurring meetups by city hosted by your local House Mom & Dad:

Los Angeles
TUE, JUL 11

San Gabriel Valley
MON, JUL 17

👯‍♀️ SARE Women’s Leadership Summit
THU - FRI, JUL 27-28

🎉 SARECON
SAT - SUN, JUL 29-30

San Jose
SAT, AUG 12

San Jose
SAT, AUG 19

Want to start monthly SARE meetups in your city? Let us know!

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