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

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 CoverThe multifamily “bomb” that’s about to explode and how multifamily became so overleveragedRisky debt and how new investors failed to think ahead with bridge loans and adjustable-rate financingThe multifamily foreclosure crisis and how many investors could be forced into forbearanceKey fundamentals to follow if you want to invest in multifamily in 2023 New construction and whether the high risk is worth the higher rewardAdvice for both active and passive multifamily investors who want to avoid getting burnt in 2023And So Much More!Links from the ShowFind an Investor-Friendly Real Estate AgentBiggerPockets ForumsBiggerPockets AgentBiggerPockets BootcampsJoin BiggerPockets for FREEOn The MarketJoin the Future of Real Estate Investing with FundriseConnect with Other Investors in the “On The Market” ForumsSubscribe to The “On The Market” YouTube ChannelDave’s BiggerPockets ProfileDave’s InstagramKathy's BiggerPockets ProfileKathy's InstagramRead The 2023 State of Real Estate Investing ReportExpert or Amateur? Do You Know Who Your Real Estate Syndicator Is?Book Mentioned in the EpisodeThe Hands-Off Investor by Brian BurkeConnect with Brian:Brian's BiggerPockets ProfileBrian's InstagramPraxis CapitalCheck the full show notes here: https://www.biggerpockets.com/blog/on-the-market-71Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!

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