COVID-19 Crisis – Multifamily
Frozen Funds – Waiting For The Thaw
Multifamily investors are looking for signs of where the market is heading. What is a prudent apartment investor to do during tumultuous economic times? When funding is frozen and a market is in doubt, everyone is in doubt. Read on to see where light may be found up ahead.
Big Lenders Bogged Down
Big lenders are bogged down with Paycheck Protection Program (PPP) Loans, SBA Loans and Coronavirus COVID-19 Financial Assistance Programs. This backlog in the system has all but shut down multifamily investment deals. Deals in the pipeline, even those that have secured funding and make economic sense, have been cancelled or postponed.
Flight To Quality
Fannie Mae and Freddie Mac reserve requirements are adjusting in a flight to quality. What was 3-4 months of required reserves, may be now 6-9 months or more. Government lenders are frozen waiting for regulations and more capital availability. Markets are frozen waiting for more indicators. Many investors are simply frozen with fear..
There is no playbook that comes with a global viral pandemic, though we can refer to history and previous pandemics for how things have played out economically in the past. What we do know is that eventually we will emerge again.
Just as the medical community is finding its way through the COVID-19 maze and making progress, so must the financial community and the multifamily industry. PPP Loans, SBA Loans and stimulus checks are underway. These should help bridge the gap as we re-emerge in a cautious, mindful way into a new normal.
Multifamily investors who have access to cash reserves will move to the front of the line during this time when it comes to apartment investments. Rather than remain frozen in fear, forward-thinking investors are already carefully doing their homework.
Front of The Line
One day soon, we will all cautiously emerge into our new normal. Will you be at the front of the line?
At Better World Properties LLC and Better World Holdings, our approach and results are leading the industry. We are experts in apartment operations with decades of experience in multifamily property management, asset management and deploying capital and business expertise to maximize return on investment from real estate assets.
Our multifamily investors save time and money when it comes to deal structuring, due diligence and property evaluations. We have been busy helping investors find their way through the current maze. Our expertise has guided us over the years to know where to look under the covers, in the books and behind the boiler room doors to find hidden value in apartment deals.
Brighter Days Ahead
We are fielding calls daily from those investors who are looking for guidance and next steps. We are happy to help and share. Please reach out if you would like to discuss your multifamily investment and financing strategies and opportunities. While we understand and respect the seriousness of the current challenges, we also remain focused on efficient apartment operations and see brighter days ahead.
Your Better World Properties LLC Team