What distressed multifamily deals are investors seeking?
Short answer: Nick's examples put financing access at the center of the opportunity: a property could be in decent shape and still be priced below construction cost if it could not refinance.
At a real estate investment panel, Richard C. Wilson asks investors what they are sourcing (0:04).
Projects unable to refinance
Nick said his group was looking for multifamily projects in financial distress, including properties that were not in bad shape but could not refinance after being bought at very low cap rates. He said buyers could find them well below construction cost. (at 0:58)
Rescue capital and stalled projects
Nick said the group was considering rescue capital, stalled projects, and owners short of money for a capital call. He said they were less interested in ground-up development when they could buy an existing asset. (at 1:54)
Owner pressure can drive distress
Another multifamily investor said some opportunities came before foreclosure, when owners wanted to retire or move, or when partners fought. He said the weakness could be with the owners rather than the property. (at 2:22)
"And if you have those type of deals, would like to talk to you."
A capital call shortfall can create an opening before the property is physically distressed, based on Nick's examples.
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Igor Olenicoff: Learn the business from the ground up. A job at a builders hardware store taught Olenicoff about building materials and techniques. It also built an affinity for real estate.
- Larry Connor: Learn from every mistake. Larry's team owns its failures and makes no excuses. They learn, change quickly, and keep getting better.
- Michael Lee-Chin: Find the person who is responsible. When a problem comes up, he asks who the agent was. He wants a specific person to call, not a department.
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Frequently asked questions
What distressed multifamily deals are investors seeking?
Nick's examples put financing access at the center of the opportunity: a property could be in decent shape and still be priced below construction cost if it could not refinance.
What other opportunities did Nick mention?
Nick said his group was active in the debt market, picking up notes banks did not want (1:26).
How did another buyer describe its approach?
One multifamily investor said the group buys with cash, can wrap around deals, and likes passive income (3:13).
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.