EPS 320 - "Maximizing Value: Chris Pearson, Top Investment Sales Broker at Marcus & Millichap- Dallas, Shares Insights on Small Apartment Deals Under 75 Units"
Description
Whether you're a seasoned investor or just dipping your toes into the world of small apartment buildings, Chris Pearson and Nick Fluellen are here to give you the inside scoop on the latest trends, market shifts, and all things commercial real estate.
Key Points:
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A community for accredited investors focused on multifamily investments. Provides exclusive updates, market insights, and new deal alerts.
Market Sentiment:
Positive sentiment at the National Multifamily Housing Council (NMHC) conference.
Increased inventory and more deals hitting the market.
Volatility in the treasury rates affecting the market.
Broker Opinion of Value (BOV):
High activity in BOVs indicating sellers' interest in knowing current asset values.
71 BOVs done in the last 30 days, suggesting increased market activity.
Market Segments:
Nick Fluellen's team at Marcus Millichap covers larger deals in DFW, 75 units and under, and secondary markets. Chris Pearson focuses on the 75 units and under segment, which he is seeing significant positive momentum. "These days, it's a lot easier to equity raise $3 million than $10 million."
Current Market Trends:
Increased activity in smaller deals (75 units and under).
First-time buyers and out-of-state buyers are more active.
Deals are still being made with hard money, though the amounts may be smaller.
Advice for New Investors:
Tour as many properties as possible to get comfortable with the market.
Submit offers even if they are below the asking price to stay active and top of mind with brokers.
Understand the importance of having financing and equity lined up.
Challenges and Opportunities:
Volatility in interest rates and its impact on deal financing.
The importance of rate locking to mitigate risk.
To contact Chris Pearson: chris.pearson@marcusmillichap.com
To contact Nick Fluellen: nick.fluellen@marcusmillichap.com
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