Get involved now or you will regret it

Yesterday morning, Bisnow, held the Boston multifamily summit at the Hyett regency in downtown Boston. More than 600 attendees gathered into the ballroom to hear the guest panel that included Boston's multifamily king the CEO of the Hamilton Company, Harold Brown and David Only CIO of Berkshire Property Advisors among several others. The purpose of this gathering was to hear what the experts in the local and national multifamily marketplace had to say about the current and future state of the market. Here are a few of the interesting points that were made:
1) The best performing markets throughout the country are the major metropolitan cities along the east and west coasts. Boston, New York Metro, D.C, Seattle, San Francisco, Los Angeles and San Diego.
2) There is approximately $700 Billion in foreign capital waiting to invest in the US multifamily markets.
3) Fear of inflation has dramatically increased interest in the multifamily product and subsequently CAP rates have been reduced to 5 – 5.5 in prime markets.
4) Lenders are now back in the multifamily market. Many are issuing loans with an LTV of 75%.
5)Fannie / Freddie and HUD are easing restrictions regarding multifamily loans and have been actively increasing the number of these loans in their portfolios
(cont'd)

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January 19 2011 - Boston
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Profile picture for SteadyState
Bobby -
You meant "Get involved now or I will regret it"!
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January 19 2011
(cont'd)
6) Due to increasing demand in the multifamily product vs. current inventory, it is estimated that demand will outweigh inventory for at lease 3 years.
It is clear that the experts are extremely bullish about the future of multifamily properties. All the evidence indicates that increasing inflationary fears coupled with easing lending restrictions and the availability substantial capital will send investors scrambling for the relative safety of apartment buildings in prime markets.
Harold Brown is so bullish on the Boston market that he stated it would not surprise him if within the next 10 years brokers began calling their clients to tell them that they found a property that was a steal because it only lost $50,000 per year. What he means by this is that in times of inflation, real estate is still a solid investment even if it operates at a negative cash flow. The reason is that there are many tax advantages as well as property appreciation that still make real estate a better investment than keeping your money in the bank earning next to zero in interest.
So if there is one simple message here, it is get in now before prices skyrocket.
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January 19 2011
Profile picture for wetdawgs
If there is one simple message, why did it take two full posting spaces to tell us?

NAR has been saying "buy now" for decades.  
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January 19 2011
Wetdawgs,



there is a character limit to zillow posts and i felt that it was necessary to summarize all of the expert opinions, rather then just say buy now.  I think that evidence is more important.  
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January 19 2011
Profile picture for the_country_hick
"i felt that it was necessary to summarize all of the expert opinions,"

I hope you allow me to do the same.
Peter Schiff: Here's Why Home Prices Have To Decline At Least 20% And Probably More

The Fallacy of a Pain-Free Path to a Healthy Housing Market - Economic Letter, December 2010 - FRB Dallas

An Awful 2011 Could Crush The Middle Class Dream Of Home Ownership

Somehow it seems my experts including the federal reserve are disagreeing with your experts.
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January 19 2011
Profile picture for Pasadenan
"Harold Brown is so bullish on the Boston market that he stated it would not surprise him if within the next 10 years brokers began calling their clients to tell them that they found a property that was a steal because it only lost $50,000 per year." -

The Realtors® and Brokers are doing that presently with all the properties that are losing $50k plus per year in equity and expenses.

So, tell me again why I'd regret not losing $3.5 million by not investing in more multi family residences presently with the new scam of the decade?

And tell me again why having foreigners WAIT to invest $700 billion should mean that the local suckers that are born every minute should rush in with their highly leveraged capital now in a rapidly falling market?

Doesn't anyone pay attention to demographics?  The U.S. housing market is substantially overbuilt, and the U.S. federal government will not allow increasing the population to fill all those vacant housing units!
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January 19 2011
 
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