Dear Investor,
If you followed the news or tuned into market discussions in 2023, you might have been led to believe that the multifamily real estate market was facing a crisis. Reports of high-interest rates and a temporary surge in new apartment supply created a narrative that diverted attention away from apartments as a promising investment.
However, it's important to reassess this perspective and understand the nuance.
While 2023 wasn't an ideal time to sell multifamily properties, and 2024 won't be a seller's market either, it presents a unique opportunity for buyers. In fact, 2024 is shaping up to be the best buyers market since the Great Recession of 2008-2009. Cap rates have increased, and properties are entering the market with discounted pricing.
Smart operators are taking advantage of these market conditions, positioning themselves and their investors at the forefront of the real estate market's recovery phase expected to unfold in 2025.
By way of disclosure, we have an advertising relationship with 37th Parallel, meaning we get paid for making this introduction and sharing this content. As always with these types of deals, consider this an introduction and not a recommendation. Every deal is unique and the responsibility to vet any and every deal you invest in still lies with you. This opportunity is available to accredited investors only.
As illustrated in the graph below from RealPage Market Analytics, the demand for apartments remains robust. Despite the influx of new apartments in 2023, they are being rented quickly.
Looking ahead to the beginning of 2025, the surge in deliveries is projected to end, and new construction permits nationwide going forward have markedly declined.
Forecasts indicate that 2025 will mark an upward swing in the market cycle, characterized by declining interest rates, cap rates, and new starts, along with increasing rent growth, absorption, and investor demand.
While 2025 and 2026 are anticipated to be great years for buyers, 2024 stands out as particularly favorable. The combination of discounted pricing and lower competition is a compelling reason for savvy investors to consider a move into the multifamily market.
Historically, those who entered the market at this point in the cycle have been rewarded with significant gains. If you're looking to enhance your chances of success, consider partnering with an experienced operator like 37th Parallel Properties. Their 100% profitable track record across more than a billion dollars worth of transactions is extraordinary.
Since 2008, they've consistently made their investors money. Currently, their Income and Total Return Fund II is open for investment ($100,000 minimum) as well as their single address property investment Grey's Harbor at Lake Norman ($50,000 minimum).
Learn More About 37th Parallel Today!
Jim and Brett
James M. Dahle, MD, FACEPFounder, The White Coat Investor
Brett Stevens, MBA
COO, The White Coat Investor
*Disclaimer: 37th Parallel Properties are not CPAs or tax attorneys, just your go-to experts in multifamily real estate. This email is for informational purposes—consult your trusted tax advisors to ensure these strategies align with your unique tax situation.
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White Coat Investor | P.O. Box 520421, Salt Lake City, Utah 84152
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