Surviving COVID-19 & Preparing for Multifamily Market Opportunities
This month, due to the unprecedented COVID-19 situation, we held our MeetUp via Zoom online. We had a robust discussion of how COVID-19 is impacting multifamily operators, from duplexes through large, commercial assets with 150+ units.
We also discussed how underwriting assumptions are rapidly changing in response to the fast-moving liquidity markets and lending landscape. Some examples include the requirement from Agency lenders to require either 12 or 18-months of reserves to be held in Escrow (depending on the loan size, product, and other lender requirements). These new requirements substantially increase the capital raise required for syndicators and exert negative pressure on returns, which will ultimately drive lower prices.
Above all, we connected with our fellow Tribe of multifamily investors and shared support to each other and our respective families as each of us navigate these unprecedented times.
