Smart investors want to understand (and limit) their “worst-case scenario.” How about a 750% explosion in joblessness from a 3.5% unemployment in Feb 2020 up to a new peak unemployment record of 30% (worse than even the 1933 The Great Depression Peak of 24.9%)? That is precisely the rental property “stress-test” many respected economists and even members of the Federal Reserve continue to forecast. Keep reading…
You may have heard the prediction that unemployment in the US could reach 30%, and that does sound scary. But what do those numbers really mean? Today, Damian Bergamaschi joins me to discuss how that worst-case scenario would impact collections and explain why he is bullish on affordable housing as a reliable long-term investment.
There is one common mistake I see investors make when evaluating multifamily opportunities: They pick a deal like they’re picking a stock. Now, it may seem wise to make investment choices based on historic and projected returns. And with the stock market, you can compare returns between stocks to help you make a decision.
I’m not as concerned about the actual HEALTH issues with the coronavirus. As of today, The number of deaths from the virus has reached 3,110 globally, but 56,000 people die of the flue each year. But I’m more concerned about the economic impact and a potential panic it could create in the market.
Imagine earning as much as $10K in cashflow distributions from your investment in a multifamily property—yet claiming a taxable LOSS! Today, Terry Judge joins me to explain how you can use a cost segregation study to mitigate (and in many cases even eliminate) taxable income for years with the magic of bonus depreciation!
How much of their own capital should a sponsor have in a multifamily investment deal? It’s a fair question, and one that investors may ask to gauge how vested their partners are in the deal. But the real question is this – how important is it for a sponsor to invest their own capital? And is it a deal breaker if they don’t?