Multifamily real estate is by no means an easy asset class to buy into. What most people mistook as simple investments in 2020 are now turning out to be cash-hemorrhaging, high-interest, soon-to-go-bust investments. Everyone and their grandma was trying to buy the biggest apartment building they could, bidding well over asking without checking the fundamentals of the deal. Now, these buyers have to reap what they sowed by selling a solid asset at a low price or falling into foreclosure.

But how did we get here? Wasn’t multifamily the hottest asset class of the past two years? This was supposed to be a foolproof way to build wealth, so what happened? Brian Burke knows, and that’s why he sat patiently on the sidelines, watching inexperienced syndicators bite off more than they could chew, refusing to listen to long-term investors. Brian has successfully predicted multiple crashes, not because he has a crystal ball, but because he knows when to take profits. He smelled something fishy happening in the multifamily space in 2019, and this same feeling saved him in 2022.

So, what’s next for the multifamily housing market? Are the nation’s multifamily investments set to crash and burn? Not quite, but this could be the opportunity of a lifetime for the new investors looking for their next deal. But when should you hop in, start analyzing deals, and make bids? Stick around for this multifamily deep dive, as Brian will give you everything you need to know about the multifamily real estate market.

In This Episode We Cover

The multifamily “bomb” that’s about to explode and how multifamily became so overleveraged

Risky debt and how new investors failed to think ahead with bridge loans and adjustable-rate financing

The multifamily foreclosure crisis and how many investors could be forced into forbearance

Key fundamentals to follow if you want to invest in multifamily in 2023

New construction and whether the high risk is worth the higher reward

Advice for both active and passive multifamily investors who want to avoid getting burnt in 2023

And So Much More!

Links from the Show

Find an Investor-Friendly Real Estate Agent

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Join the Future of Real Estate Investing with Fundrise

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Dave’s BiggerPockets Profile

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Kathy's BiggerPockets Profile

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Read The 2023 State of Real Estate Investing Report

Expert or Amateur? Do You Know Who Your Real Estate Syndicator Is?

Book Mentioned in the Episode

The Hands-Off Investor by Brian Burke

Connect with Brian:

Brian's BiggerPockets Profile

Brian's Instagram

Praxis Capital

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-71

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71: The Multifamily “Bomb” is About to Blow, Here’s What You Need to Know w/Brian Burke 53:09 Share

On The Market

Shownotes Transcript

71: The Multifamily “Bomb” is About to Blow, Here’s What You Need to Know w/Brian Burke