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We want to express our heartfelt appreciation and gratitude for all mothers out there. Happy Mother's Day to the incredible women who shape and inspire us every day!



The highlight for this month is getting a Class A property under contract in Columbus, Ohio. We have already been working at this for a few weeks now, however, the next few weeks are going to be intense as we complete the due diligence on the property and prepare to close on it. This month was also busy attending conferences, meeting with investors and networking with other fellow operators. Kent was at the Jake and Gino event at Denver, CO, where he was busy forging partnerships with key operators interested in our Columbus deal. Rik on the other hand was at the VSV Con 2023 in Phoenix, networking and meeting with 3rd party vendors to get new quotes for the deal.

Did You Know?

You can invest in real estate using the money that is lying in your retirement account, like your IRA or 401K! This can offer additional benefits of tax-deferred or tax-free growth. However, there are specific rules that must be followed. First your retirement account needs to be converted into what is called a self-directed retirement account. Next, the property purchased must be strictly for investment purposes and all expenses and income must be paid from and into the retirement account. We are happy to help you take the necessary steps and connect you to professionals who can help.

WANT TO DISCUSS YOUR REAL ESTATE INVESTING?

Disclaimer: We are not lawyers or tax consultants and this should not be considered legal or financial advice. All content provided in this newsletter is for informational purposes only.

MARKET TRENDS

Apartments.com Releases Rent Growth Report for First Quarter of 2023



The multifamily sector in the US has shown signs of improvement in Q1 2023, with positive absorption, a slight increase in vacancy rates to 6.7%, and a positive year-over-year asking rent growth of 2.5%. However, economic uncertainty, high inflation, and record supply still under construction are putting pressure on the market. The national multifamily market is expected to see over 1 million units under construction, which will likely put upward pressure on vacancy rates and downward pressure on rents, particularly in four- and five-star properties. Meanwhile, three-star properties, typically garden-style multifamily, have seen the most significant rise in vacancies but are still leading in overall rent growth at 3.1%.



Read the full article here.

Cap Rate Trends of 2023: Multifamily Real Estate Market



The commercial real estate industry in the US is facing market challenges driven by inflation and changing monetary policy, making it crucial for investors to be aware of current trends. Cap rates are an important metric to consider as they have a significant impact on overall return on investment. Factors affecting cap rate trends include interest rates, local economic growth, and inflation. Understanding current cap rate trends is crucial for pricing properties today and predicting future values. Asset managers can maximize returns by comparing potential returns across markets and connecting with experienced property management firms such as Summerfield Property Management.



Read the full article here.

Resources

In this episode of the BiggerPockets podcast, real estate investors Andrew Cushman and Matt Faircloth discuss the current state of the multifamily real estate market and how it is now possible for small-time investors to invest in large multifamily real estate. They discuss the "tailwinds" that are making apartment investing easier in 2022 and 2023, the hidden opportunities in multifamily investing, the importance of creativity in scoring better deals, and ways to mitigate risks in multifamily investing. They also introduce the BiggerPockets Multifamily Bootcamp, which helps investors go from onlooker to investor. Overall, this episode is a valuable resource for anyone looking to level up their investment portfolio and bring in passive income through multifamily investing.



Listen to the podcast here.

The Multifamily Millionaire series' first volume by Brandon Turner and Brian Murray offers a comprehensive guide for beginners to start investing in small multifamily real estate properties. The book presents a step-by-step blueprint that helps investors turn their single investment into long-term financial freedom. It covers the Stack method for creating a million-dollar net worth in five years, seven different types of small multifamily real estate, and creative no- and low-money-down strategies. The book also offers a game-changing algorithm for estimating ongoing expenses, the Multifamily Millionaire Method, off-market acquisition strategies, and detailed instructions for managing a growing portfolio. The book aims to assist aspiring investors, regardless of their experience or financial resources, in achieving their millionaire goals.



Purchase the book here.