The Great Resetting of Multifamily Assets is HERE

For the last 3 months, we’ve been helping clients acquire foreclosed and deed-in-lieu properties at staggering discounts—landing deals at 70% to 85% of the outstanding loan amounts.

Let’s look at a real-world example we are working on right now:

🏢 The Asset: 300-unit Multifamily
💰 2021 Sale Price: $40M
📉 Foreclosure Loan Balance: $28M
🤝 Client Purchase Price: $22.4M

That is just over 55% of the sale price from 5 years ago! Even better, lenders are stepping up to finance up to 80% on these acquisitions ($17.5M loan). Add in the fact that many of these properties boast the same occupancy as 2021 plus completed CapEx improvements, and the upside is massive.

📍 We are seeing this happen right now in major growth markets like DFW, Houston, Tampa, and Orlando.
The deal flow is accelerating. Just last week, a broker approached me looking for buyers for a portfolio of 24 foreclosed REOs. I currently have a client actively bidding on 9 of those assets. 💼

💡 Let's talk about the math.
We all know the headwinds. Since 2021, operational costs have surged:
* 📈 Taxes: +20% in many cities
* 🌪️ Insurance: +110%
* 📊 General Expenses: +20%

BUT...look at the offset. Rents are still higher than they were, occupancy remains remarkably strong, and population growth in these Sunbelt metros is booming.

The real game-changer is the drastically reduced basis. We are looking at an original purchase price of $134K/door in 2021 vs. $74K/door today.

Do the math on that reset:
✅ Much higher NOI
✅ Much stronger DSCR
✅ Excellent cash flow (or a very clear path to it)

If you look at this landscape and don’t see a huge opportunity right now... you are in the wrong business. 🤷‍♂️🚀