Aaron Katz bought often and actively between 2012-2020. In 2021-2022 when bridge loans with variable rate debt became the only way to get the necessary leverage to “win” and buy deals in a competitive and appreciating market, prices were skyrocketing and many factors all had to fall right for deals to make sense and achieve their projected business plan making buying at that time more risky. Aaron Katz exercised great caution where many threw caution to the wind. Now in 2024 buyers such as Aaron are going to take advantage of tremendous buying opportunities as a result of this. This, along with several other factors, outlined below, make 2024 an absolute GREAT time to be buying and investing in apartments. In fact, right now in 2024 is the very best time to buy/invest in apartments in years. Here are a few of the main reasons WHY…

1. CAP RATES LIKELY PEAKING

 Cap Rates are likely currently at a peak. Interest rates will fall in 2024 and when they do this will result in cap rate compression. As interest rates fall more buyers will then come back into the market which will drive competition and lower cap rates further. This means we can buy at a greater return for our investment dolllar now and as cap rates compress our assets future values will be driven up. This bodes very well for projects on a 5-year projected hold as Aaron’s are. We have a tremendous “window of opportunity” right here, right now in early 2024. Buy and invest in apartments NOW in 2024 for likely consistent cash flow and cap rate compression.

2. MASSIVE DISCOUNTS

We can buy apartments NOW in 2024 at Massive Discounts. Multifamily is “On Sale”. Due to the rising interest rate enviroment we’ve experienced since 2022 we can currently buy Class B-C multifamily at a 25-40% discount.

3. TREMENDOUS BUYING OPPORTUNITIES

Those 2021 3-year bridge loans with variable rate debt are coming due in 2024. This will result in many needing to sell at discounted prices so the market inventory will skyrocket creating lots of terrific buying/investing opportunities. Aaron and his passive investors will be ready to take advantage.

4. AFFORDABILITY GAP

There’s never been a greater delta between the average apartment rent in the U.S. ($1,824) and the average home mortgage payment ($3,115). A nearly $1,300 delta meaning potential homeowners are “priced out” of home ownership which means demand for apartments will remain strong.

5. CONSTRUCTION STARTS DOWN NATIONWIDE

This means by 2026 there will be few new apartment completions coming online which will drive rents and occupancy upward significantly.