As multifamily brokers, we consistently hear from buyers searching for value-add properties. However, increasingly, we are beginning to hear discouragement there are no more value-add deals to be found. The per unit prices in Tulsa and Oklahoma City are accelerating into all-time highs; currently they are in the low $60,000 per unit range. While this escalation of prices may seem discouraging at first, prospective buyers need to realize that there are still opportunities to be found.
Pam Billings honored with award at national summit
A Price Edwards employee will be honored this weekend for her service to others at the Annual Lung Cancer Advocacy Summit in the nation's capital. Pam Billings, Property Manager at the Douglass and the Douglass Next Door, is a lung cancer survivor, and along with three other women, she created Oklahoma's only lung cancer survivor support group.
"We're so proud of Pam, and her selfless efforts," says Becky Sesock, Price Edwards Senior Vice President of the Multifamily division.
I have a lot of conversations about apartments every day. Within minutes of a conversation, it is easy to spot who knows what they are talking about and who does not. Knowing what to say and understanding the vernacular is part of the process. These are words or phrases that I often say and realize that not everybody knows what I am talking about. In an effort to create the universal translator for apartment investing, the following are phrases that you will often hear and their explanation.
Multifamily investing has many different shapes and sizes. For the most part, this class of real estate asset breaks down into the following categories: market rate apartments, senior living, student housing, affordable housing, and sometimes mobile homes. There are even subsets of these classifications, but for our discussions here we will stick to market rate apartments.
The underwriting looks good, the submarket dynamics are favorable, and the value-add component is realistic. This short list of investment criteria help explain the 10,000-foot view and possibly even the 5,000-foot view, but what happens when we get into the details? The details are where the deal turns into a home run or a dreaded write-off, so where can investors look beyond the numbers and read the words between the lines?