Multifamily investments standing still

The multifamily purchase market is almost at a standstill right now. Seems like the entire investment market has taken the rest of the year off.

A multifamily investment lender like an insurance company has basically folded their tents for the year leaving even less choices. We have two insurance companies still willing to make an investment in the sector putting very good loans on their books. I'll say that again. Very good loans.

The general consensus is the multifamily investment market is more than holding it's own in both performance and cash returns. Occupancy is up but collections are as well washing each other out. Surveys indicate that the multifamily investment is capable of high returnswhile maintaining its value better than most other real estate investment options. Even out pacing the NNN properties.

Thank goodness for the Fannie and Freddie Multifamily programs as the backing has kept something going in real estate for both agents and investors. More than a leap of faith, it's actually making a profit.

Refinancing is taking a large percentage of the business right now. Multifamily investors are becoming a bit comcerned over bank balloon notes and calling more often.

No one is able to predict how the banking industry will be handling maturing notes. What we do know is they want deposits right now and not risk.

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