Don Bingham III

NAHB predicts a significant pullback in multifamily starts for 2024. Are we surprised? Multifamily Developer Confidence is in Negative Territory. In the fourth quarter of 2023, multifamily developer confidence remained in negative territory, as revealed by the Multifamily Market Survey (MMS) conducted by the National Association of Home Builders (NAHB). The survey produces two key indices: the Multifamily Production Index (MPI) and the Multifamily Occupancy Index (MOI). The MPI, which gauges sentiment about current production conditions in the apartment and condo market, scored 41, below the break-even point of 50. Meanwhile, the MOI, measuring the industry’s perception of occupancies in existing apartments, registered 77. Tight lending standards and high development loan costs continue to hinder financing for new multifamily projects. Given the substantial supply of multifamily units under construction, NAHB predicts a significant pullback in multifamily starts for 2024 #realestatedevelopment #realestateinvesting #passiveincome #multifamily #realestate #multifamilyinvesting #multifamilyrealestate #firsttimedeveloper #raisemasters30 #cre #financialfreedom

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While soaring apartment supply levels have continued to make headlines throughout this past year, it seems that the heightened levels of demand have been left with little attention. Demand for apartments in the first half of this year reached its highest annual number since the year 2000. According to RealPage Market Analytics, over 257,000 have been absorbed in the first two quarters of 2024, which is “essentially in line with the all-time high” that was in achieved in during the pandemic with 270,000 units. While the four-decade peak in deliveries has put pressure on rent growth, the striking demand paired with the fall-off of new multifamily permits bodes well for owners and operators in coming years. https://hubs.li/Q02FWx2S0 Interested in learning more about Club Capital? Join our preferred investor club to get access to our latest investment opportunities and our education blogs and podcasts. https://hubs.li/Q02FX6my0 #Apartments #Housing #Multifamily #InvestmentStrategies #CREInvestments

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95% of CRE Brokers Do Not Understand Leverage... Almost all of them think they do, but in my opinion - most are missing out on the most important type of Leverage. "But I work with Bankers every day and there's debt on almost every deal I do!?" This is not the type of Leverage I'm talking about. There's 4 types of Leverage that can be broken down into 4 C's: Capital, Code, Content, and Collaboration. The Collaboration part has probably been the number 1 growth factor for my business. Collaboration allows Leverage on your Time. In my opinion, the key to the "game" of business is to continually trade up for more Leverage on Your Time. At first, you have to do the $10/hr tasks. But once you're making $50/hr, you can hire someone for $10/hr. And then when you're making $200/hr, you can hire someone for $50/hr to do the tasks you shouldn't be doing. After that, you continue to gain more leverage on your time, and execute the tasks that are the most influential to your business, and that you genuinely enjoy doing. So, if you're a CRE Broker and are not using Leverage in your business... I would recommend you start thinking about it. And if you want to know how I structured this Leverage to scale to $1.4M in Gross Commissions in a Single Year - Just reply to this post or DM me. No sales pitch - just happy to help however I can.

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Does this moment in the real estate market feel like 2009? 2010? I’ve seen a few posts trying to equate today’s malaise to the GFC. In 2009 and 2010, loan portfolios were still being foreclosed on in San Francisco. Rents had already fallen ~10%. My partners and I felt the bottom was upon us and started Calvera Partners in 2010. I would start Calvera Partners again today. More properties are hitting the market with real sellers. Distress continues to percolate and will emerge as opportunities. New construction will fall off a cliff in a couple of years, while apartment demand grows. With such a negative news cycle around real estate, it’s difficult to jump in. Though oftentimes that’s exactly when to take the leap. I’d do it all over again.

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So how many of you/us Real Estate Developer types can continue doing business after a $1B default much a $1M default. This is the classic double standard, different strokes for different folks. https://lnkd.in/gTrfGPyn

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The State of San Diego The San Diego real estate market remains robust with limited inventory and high demand driving prices up, making it a challenging environment for buyers but advantageous for sellers I took a deep dive into the projected 2024 numbers, and the results might surprise you. What’re your thoughts on the state of San Diego? Let’s talk about it in the comments. #realestateadvice #multifamily #investingtips #multifamilyinvesting #investingstrategy #multifamilyrealestate #investortips #multifamilyinvestor #biggerpockets

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Get the entire 2-day Visual Summary of AREC in the Real Estate Gym > Templates This includes all of Chris Gilmour's presentation slides! https://lnkd.in/gCrqfAE

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The CCIM Institute's 101 course might be the most important curriculum in the history of commercial real estate. People say you shouldn’t buy a course on #cre. Wrong. Fortunes have been made with these basic concepts: - Without leverage, pre-tax/post-tax - With leverage, pre-tax/post-tax - More > Less, Sooner > Later - Compounding/discounting - Net operating income - Internal rate of return - Time Value of Money - Net present value - Cap rates 🤤 Take this class— you’ll be ahead of 90% of people in the business.

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Scottsdale, AZ: Short-Term Rental (STR) Market Overview. (Which market should I look into for next week?) - The Scottsdale market has seen substantial growth in total monthly revenue. This growth underscores the market's strength and ability to command higher prices. Impact of Property Size: - Property size plays a crucial role in rental performance in Scottsdale. Larger properties (5+ bedrooms) consistently achieve higher average monthly revenue and ADR compared to smaller and medium-sized properties. This suggests a strong demand for spacious accommodations, likely driven by group travelers and families seeking ample space and amenities. However, it's important to note that larger properties generally experience lower occupancy rates than smaller properties, indicating a potential trade-off between higher rates and consistent bookings. Influence of Amenities: - The presence of a pool significantly impacts rental performance in Scottsdale. Properties with pools consistently outperform those without pools by revenue. Specifically, properties with pools have a mean revenue of $11,470.80 and a median revenue of $10,144.20, while properties without pools have a mean revenue of $5,931.13 and a median revenue of $5,478.12. - While properties with hot tubs and pools command a higher average monthly revenue compared to those without such amenities, the difference in occupancy rates is negligible. For example, properties with hot tubs have a mean occupancy of 69% and a median occupancy of 67%, while properties without hot tubs have a mean occupancy of 67% and a median occupancy of 66%. This suggests that while these amenities may contribute to a more luxurious experience and justify premium pricing, they do not significantly influence booking frequency. Market Outlook: - The Scottsdale short-term rental market is poised for continued growth in 2024. The upward trends in revenue coupled with stable occupancy rates, indicate a healthy and thriving market. Investors can capitalize on this positive momentum by focusing on larger properties and ensuring the availability of sought-after amenities like pools and hot tubs. (Data used for this report was restricted to Investment Grade assets.) _______________________________ Interested in learning more about STRs? Check out my article on how a VRM can boost returns by 56%! https://lnkd.in/gNH473aT #shorttermrentals #str #scottsdale #airbnb #investmentgrade #datadriven

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📊 **June Sacramento Real Estate Market Update** 🏡✨ Hi everyone, Christopher Brown from NEXT Real Estate Group here! Want the full scoop on the Sacramento market for June? Check out our detailed market update on YouTube. 📺 **Summary:** - 📈 Average Price is UP 2.2% - 💲 Average Price per SF is UP 0.3% - 🏘️ Number of Homes Sold is DOWN 12.1% - 🔜 Number of Pending Sales is DOWN 3.1% - 📅 Months of Inventory is UP 27.9% Mortgage rates are expected to remain in the high 6’s until after the election. 🗳️ In short, Sacramento is steadily moving up but hitting a summer slowdown. There are opportunities for buyers, but you need to be selective. With major changes to real estate rules coming next month, having Professional Representation is more important than ever. 📲 Watch the full update here: https://lnkd.in/gud9zegZ Stay informed and reach out if you have any questions! #SacramentoRealEstate #MarketUpdate #NEXTRealEstate #HomeBuying #ProfessionalRepresentation #YouTubeUpdate

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INVESTING IN AFFORDABLE HOUSING Renters in Los Angeles are seeking top-tier apartments which comprise only 15% of the market with vacancy rates at 8.6%. There is a ongoing demand for properties with onsite amenities such as fitness gyms, spas, pet parks and lounges. In contrast to improving occupancies in higher-end communities, vacancies continued to rise in lower-end one-and-two-star and mid-end three-star buildings. One-and-two-star properties, with around 65% of the market, witnessed negative demand in the past 12 months. Three-star properties, with around 20% of the market’s units, saw modest, positive demand. Lower and middle-income residents face greater budget constraints, with rents still near record levels. These renter cohorts have driven more limited household formation and continued outmigration from Greater L.A. to more affordable metros. There is also a big push for more affordable housing units with the City of LA and other state and federal programs subsidizing lease payments to owners. The city has even purchased multifamily complexes and converted them to affordable housing. Case in point, the recent sale (April 2024) of the 120 unit multifamily property at 349 S La Fayette Park Place, Los Angeles, CA 90057 was sold for $43,440,000, or $362,000 per unit to the Housing Authority of the City of Los Angeles. Primarily a 1 Bed + 1 Bath mix multifamily development with 97.5% occupied at the time of sale. MARQUIS Commercial Properties is working through entitlements with its affiliated partner, LA HAUS Company on a multifamily project in Los Feliz neighborhood of East Hollywood to convert a 6 unit property into a 35 unit affordable housing project. This is just one of a few entitlement projects underway to bring affordable housing to the community. Multifamily continues to be in high demand in Southern California and is expected to continue into 2025 with rents showing a continued upward trend. If you would like more details on how on acquiring off market multifamily opportunities, contact us at ezra@marquissp.com #realestate #business #finance #banking #multifamily #investing #commercialrealestate #affordablehousing #california

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🔑 Cracking the code on multifamily syndication models: Fixed vs. equity investments! 🏢 In this illuminating segment, Vinney contrasts two distinct approaches, shedding light on their unique dynamics: 🔺 Grant Cardone's fixed-interest model: Loan-based with predetermined returns 🔺 Equity syndication: Shared ownership and upside in specific assets Gain clarity on the pros, cons, and strategic considerations for each method as The Investor Impact: Power Talks delves into the syndication playbook. Check comments for more! #multifamilyinvesting #syndication #realestateinvestment

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Many CRE Brokers are talking about using AI in the workplace. Here's why I think leveraging AI as a CRE Broker can be a MASSIVE mistake... There's no debate on whether AI will play a major role in Commercial Real Estate Brokerage, because I believe that all of us can agree that it will change our industry and many others forever. However, I've recently seen more and more brokers talking about AI for Cold Calling. In my opinion, I think this would be a MASSIVE mistake for CRE Brokers to implement right now. Let me explain why... It's no secret that you can make A TON of money in this industry. The way Brokers make oodles of money, is by their ability to generate leads & close deals. 1 Single Lead in Commercial Real Estate can be worth $50k, $100k, $250k+ Another thing I think we can all agree on is that CRE is a Relationship business. When we create Relationships with Property Owners, sometimes they turn into deals. These Relationships are built on trust. So just ask yourself, when a Robocaller or Spam call comes through your phone... How does it make you feel? Are you just overwhelmed with joy and thanksgiving for the Robocall? Do have a single ounce of trust or desire to build a relationship with the Robocaller? Or the organization that orchestrated the call? No, you don't. The reason why this can be a massive mistake, is because CRE Brokers normally have a finite number of leads in their market. If you are a broker that's specialized in an asset class, there's normally less than 1,000 property owners in your market that you want to build relationships, and do business with. If you attempt to start these 1,000 relationships with a Robocall, How successful do you think you'll be? After you hit them with a Robocall and they know it's coming from you... How does the next conversation go? Sure you might generate 1 or 2 leads per 1,000 Robocalls your AI bot makes... But for the other 999 property owners - you've now thrown a toxic seed in the soil to try and grow a fruitful relationship. In my opinion, it's a mistake - and CRE Brokers should avoid AI Cold Callers. In this era, I'm doubling down on Human to Human connection. ... and if you want to build a big 'ole business that stays for decades to come - I would recommend the same thing. If you want to automate some of your prospecting activities and generate more leads as a CRE Broker, join the waitlist for REHQ on our website, and get ready to see how we will change the game forever with our big reveal later this year.

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Digging into the data on deliveries in Seattle, Q1 2024 had either the most, or second most (except for townhouses), amount of all types of residential unit deliveries over the past four years including: Apartments: **1st - Q1 2024 (4,260)**, 2nd - Q4 2023 (2,603) Single-Family: 1st - Q2 2023 (179), **2nd - Q1 2024 (168)** Townhouses: 1st - Q2 2021 (391), 2nd - Q4 2020 (388) ADU/DADU's: 1st - Q2 2023 (274), **2nd - Q1 2024 (257)** Congregate: **1st - Q1 2024 (137)**, 2nd - Q2 2022 (106) New applications are up 11% from the same period last year, and building permit issuance has been essentially flat, down 1%. Despite all this new supply coming online, rent increased 0.6% in Seattle in May. Compared with a 0.5% nationwide increase, per Apartment List. Year-over-Year rent growth in Seattle now stands at +0.8%.

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Resi App v1.19.0 released this week. Ever wonder what these software versions mean? When you know how to read them, each of these numbers tells a story about a product, about a company, about a vision. Here's a quick breakdown: 1️⃣ Major Release (First Digit) Impact: Big (and sometimes breaking) changes! Think impactful new features or significant reworks. Expect new functionalities and potentially a learning curve. It's like getting a new engine in your car. This shows a company is releasing a large investment in their product and you should pay attention 👀 2️⃣ Minor Update (Second Digit) Impact: These updates add new features or significant improvements to existing ones. Expect changes beyond simple fixes. These are the types of feature updates that software users love. Think adding heated seats to your car. More frequent minor releases signifies a company that listens to their customers — Showcasing ongoing commitment to refinement and enhancement. 3️⃣ Patch (Third Digit) Impact: Generally for bug fixes and minor tweaks to address overlooked issues and improved reliability. These are important for the smooth running of your software, ensuring security and stability. Think fixing a windshield or a flat tire. They signal to users that you're attentive to and proactive to improve their experience quickly. Understanding these numbers can help you manage updates better, ensuring you know what's going on with your tools. 💡 Pro Tip: Always read update notes to understand what changes are coming with each version. This helps you use new features effectively and be aware of any major changes that might affect how you use the software and... the tools that integrate with it. Now, you'll deduce, that the Resi release I mentioned was a minor update. It was an enhancement to 1.17.0 released about 2 weeks ago. We: - Added a bulk user import feature - Added more global integration settings - Added RentCafe integration features - Added branded email templates for system messages - Changed some field types for improved speed - Changed email domains for system messages Now, tell the truth. 🤥 Do you read update notes? I'd recommend you do when you can, but for now use these shortcuts to read between the versions. #DigitalMarketing #LetsGetSaaSy #Multifamily #Software

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