đź’ˇ Summary: Economist Peter Linneman predicts that capital markets for multifamily investing will recover in the second half of 2023 as banks resume lending and investor confidence returns. He expects cap rates to decline as capital flows back, while limited new construction and strong housing demand support steady NOI growth. Despite recent rate hikes, Linneman … Read more
đź’ˇ Summary: Kathy Fettke believes the next 6–12 months of the economy will largely depend on Federal Reserve actions, which remain unpredictable. While high interest rates have slowed housing, she sees strong long-term demand driven by millennial household formation and limited housing supply. For multifamily investing, Fettke views current uncertainty as an opportunity to find … Read more
In our last blog, Evaluating the Sponsor, we mentioned that there will likely be syndicators who will be forced to leave the business. Unfortunately, it has started with the recent announcement of the $229MM multifamily foreclosure in Houston, TX, and there will likely be more to come. While details are still coming out, we believe … Read more
đź’ˇ Summary: Over the next decade, persistent currency devaluation and oil-driven input costs are likely to lift asset prices, making hard assets a practical inflation hedge. Within real estate, necessity-based sectors—especially Class B & C multifamily—offer resilient, risk-adjusted returns amid discounted pricing from distressed sellers. For investors focused on multifamily investing, partnering with experienced operators … Read more
đź’ˇ Summary: Rising rates and recession risk mean investors should expect lower projected returns and longer holds in multifamily investing—think low-to-mid-teens IRR for Class B & C value-add deals. Prudent operators are de-risking with higher exit cap rates, modest rent growth, lower leverage, fixed agency debt, and larger reserves. Be wary of sponsors touting outsized … Read more
đź’ˇ Summary: Gary Lipsky, CEO of Break of Day Capital, outlines five key strategies for successful real estate investing in 2023: be conservative with underwriting, understand your local market, manage debt wisely, invest in workforce housing, and partner with experienced professionals. By focusing on risk management, informed decision-making, and long-term stability, investors can navigate a … Read more
đź’ˇ Summary: Macro signals point to disinflation and a potential recession, and some multifamily operators are under pressure from higher debt costs. Break of Day Capital is selectively acquiring from motivated sellers using conservative underwriting to target superior risk-adjusted returns. For passive investors, multifamily syndications in growth markets remain a resilient, inflation-hedging approach when managed … Read more
đź’ˇ Summary: In times of economic uncertainty, multifamily real estate investing stands out as one of the most effective risk-mitigation strategies. Data shows private equity real estate delivers stronger risk-adjusted returns—with a five-year Sharpe ratio of 1.45 versus 0.44 for the Vanguard Index and 0.33 for U.S. stocks. Multifamily assets provide stability through consistent housing … Read more
đź’ˇ Summary: In a turbulent global economy marked by inflation, rising rates, and market volatility, real estate investing—especially value-add multifamily—continues to stand out as a stable, inflation-resistant asset class. Unlike stocks or crypto, real estate offers passive income, long-term appreciation, and tangible asset protection. At Break of Day Capital, investing in multifamily properties provides investors … Read more
