BRP Resi-Mercial™️ Group for Residential Realtors to learn Commercial Real Estate
This Group is for Residential Agents and Brokers Who want to transition to Commercial Real Estate... View more
Organizer:
- Organized by
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Multifamily Foreclosure
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Multifamily Foreclosure
What steps are current investors taking to overcome this? How should we prepare to take advantage of this opportunity?
“Foreclosures such as that of Applesway in Houston are rare, but they could become more common as loans come due and hedging contracts that protect landlords from rising interest rates start to expire. A record $151.8 billion in U.S. mortgages backed by rental apartment buildings are set to expire this year, and $940.1 billion are set to expire over the next five years, according to Trepp.“
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1 Reply
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Yeah, if you’re a current operator and you’re looking to weather the storm, you can work with your local bank and try and restructure the loan. Before you approach your bank, you will need to make sure the asset is currently stabilized that typically can take at least 90 days. Depending on how detail the stabilization. The problem with, this approach is the bank may not be willing to work the loan out, especially with smaller operators. As banks themselves are in trouble and have to fish or cut bait. As far as Investors with dry powder, they’re going to smell blood in the water and feast on assets that find themselves in this predicament and look to acquire them at a discount.
-Bryan
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