Lack of Inventory Not Stopping Multifamily Investors
The demand for multifamily assets continues to thrive in Texas. Marcus & Millichap’s VP of Investments, John Barker, says the only problem that he’s seeing nowadays is the lack of inventory; hungry investors are streaming into Texas and are liking the property prices and positive cash flow from day one of ownership. Rather than depending on appreciation, investors can invest in Texas and yield earnings from the start of their ownership. John tells us that most of their offerings field six—and even up to 20—offers. Three of his recent deals have sold from $350k to $1M above the listed price. The Barker Multifamily Group (pictured here) has recently closed 1,228 units, with another 1,000 units under contract. How long will the good times last? Not forever, of course. John reminds us that the Fed may increase interest rates in August and/or December and that Fannie and Freddie have a limited amount of funds through the end of the year. Still, the snowball continues to roll and get bigger; John’s adding a seventh agent to the busy team. For more info on our Bisnow partner, click here.