{"id":189410,"date":"2025-04-17T18:50:09","date_gmt":"2025-04-17T18:50:09","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/real-estate\/multifamily-real-estate-investing-ignore-the-noise-and-focus-on-whats-not-going-to-change\/"},"modified":"2025-04-17T18:50:09","modified_gmt":"2025-04-17T18:50:09","slug":"multifamily-real-estate-investing-ignore-the-noise-and-focus-on-whats-not-going-to-change","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=189410","title":{"rendered":"Multifamily Real Estate Investing \u2013 Ignore the Noise and Focus on What\u2019s Not Going to Change"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>One of the main reasons I write online is to document how I think during uncertain times, and right now, in early April 2025, things feel especially uncertain.<\/p>\n<p>Every major headline points to chaos: a trade war with China, a sharp selloff in Treasuries, a volatile stock market, falling consumer confidence, fear of inflation, growing concerns of a recession etc. etc.<\/p>\n<p>How can you make high-conviction investment decisions in this setting?<\/p>\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"532\" height=\"249\" src=\"https:\/\/astudentoftherealestategame.com\/wp-content\/uploads\/2025\/04\/WSJ-Headlines.png\" alt=\"\" class=\"wp-image-56260\" srcset=\"https:\/\/astudentoftherealestategame.com\/wp-content\/uploads\/2025\/04\/WSJ-Headlines.png 532w, https:\/\/astudentoftherealestategame.com\/wp-content\/uploads\/2025\/04\/WSJ-Headlines-480x225.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) 532px, 100vw\"\/><figcaption class=\"wp-element-caption\">WSJ \u2013 4\/11\/25<\/figcaption><\/figure>\n<p>A lot of this noise, however, is just that \u2013 noise.<\/p>\n<p>Yes, these issues matter, and it\u2019s important to stay informed, but for long-term multifamily investors with a 5-10-year outlook, these short-term uncertainties shouldn\u2019t be the driving force behind decision-making.<\/p>\n<p>Here\u2019s the backdrop for Atlas as I see it. We focus on acquiring high-quality, value-add multifamily investments in the Southeast:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Rental demand is booming.<\/strong> RealPage just reported the strongest Q1 for net absorption in over 25 years. The Southeast is leading the way, with markets like Dallas, Austin, Atlanta, Charlotte, Raleigh, Orlando, Tampa, and Nashville, and smaller markets in South Carolina and Florida, seeing the most activity.<\/li>\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=sMNT_D5wj_w&amp;t=19s\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Resident retention is at a 3-year high<\/strong><\/a>, helping support strong occupancy.<\/li>\n<li><strong>New supply is slowing down<\/strong>, and the 2-3-year supply outlook is as favorable as we\u2019ve seen. Construction costs continue to rise, and that\u2019s unlikely to change, regardless of what happens with tariffs.<\/li>\n<\/ul>\n<p>Bottom line: <strong>I\u2019m very bullish on Southeast multifamily over the next 5\u20137 years, and that hasn\u2019t changed one bit over the past week.<\/strong><\/p>\n<p>That said, during uncertain times like these, investors often go looking for complex answers. I couldn\u2019t explain the \u201ctreasury basis trade\u201d to you, and honestly, I don\u2019t need to. It really doesn\u2019t matter to me.<\/p>\n<p>I\u2019ve said it before: <strong>Multifamily investing is a simple business that\u2019s hard to execute well.<\/strong><\/p>\n<p>I have no idea what the near future holds, and honestly, anyone who claims they do is kidding themselves.<\/p>\n<p>When I\u2019m evaluating opportunities, I always come back to the fundamentals of multifamily investing:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Buy below replacement cost<\/strong><\/li>\n<li><strong>Use long-term fixed-rate debt<\/strong> whenever possible<\/li>\n<li><strong>Pursue deals with supportable value-add business plans and good downside protection<\/strong><\/li>\n<li><strong>Focus on strong physical and locational attributes<\/strong>, things like access to jobs, natural amenities, good unit layouts, functional spaces, and quality amenities<\/li>\n<li><strong>Deliver what residents actually want<\/strong>: great value, a sense of community, and reliable service<\/li>\n<\/ul>\n<p><strong>It\u2019s simple. But during uncertain times, when the best opportunities tend to pop up, it\u2019s easy to overthink and talk yourself out of taking action.<\/strong><\/p>\n<p>Howard Marks said it well in his recent memo, aptly titled, <a href=\"https:\/\/www.oaktreecapital.com\/insights\/memo\/nobody-knows-yet-again\" target=\"_blank\" rel=\"noopener\" title=\"\">Nobody Knows (Yet Again)<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThere\u2019s absolutely no place for certainty in the world of investing, and that\u2019s particularly true at turning points and during upheavals. I\u2019m never sure my answers are right, but if I can reason out what\u2019s most logical, I feel I have to move in that direction.<\/p>\n<p>The old saws that are the refuge of terrified investors \u00a0\u2013 \u201cwe\u2019re not going to try to catch a falling knife\u201d and \u201cwe should wait for the dust to settle and the uncertainty to be resolved\u201d \u2013 cannot in themselves be allowed to determine our behavior.<\/p>\n<p><strong>I love the title of a book by a market analyst named Walter Deemer: \u201cWhen the Time Comes to Buy, You Won\u2019t Want To.\u201d<\/strong>\u00a0The negative developments that make for the greatest price declines are terrifying, and they discourage buying. But, when unfavorable developments are raining down, that\u2019s often the best time to step up.\u201d<\/p>\n<\/blockquote>\n<p><strong>In my view, now is the time to act, not overthink.<\/strong><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>One of the main reasons I write online is to document how I think during uncertain times, and right now, in early April 2025, things feel especially uncertain. Every major headline points to chaos: a trade war with China, a sharp selloff in Treasuries, a volatile stock market, falling consumer confidence, fear of inflation, growing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":189411,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[99],"tags":[7001,4856,4519,15053,10906,17653,2578,482,5614],"dealstore":[],"offerexpiration":[],"class_list":["post-189410","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-change","tag-estate","tag-focus","tag-ignore","tag-investing","tag-multifamily","tag-noise","tag-real","tag-whats"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Multifamily Real Estate Investing \u2013 Ignore the Noise and Focus on What\u2019s Not Going to Change - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=189410\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Multifamily Real Estate Investing \u2013 Ignore the Noise and Focus on What\u2019s Not Going to Change - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"One of the main reasons I write online is to document how I think during uncertain times, and right now, in early April 2025, things feel especially uncertain. 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