Indecisiveness Shared Amongst Multifamily Investors

Indecisiveness Shared Amongst Multifamily Investors
By: Nicholas A. Dunlap, CPM

Shared sentiments in recent studies published by The Wall Street Journal and Apartment Finance Magazine demonstrate high levels of indecisiveness amongst multifamily investors. Interest rates are down, as are property values but so is transaction volume. Then what gives? Fear of a double-dip recession leads some investors to believe that although we are seeing some of the best investment fundamentals in years, there may still be another hit coming.

That hit, depending on how significant, could have a large impact on an investor’s going-in cash flow. Maneuvering an asset through turbulent economic times is certainly a skill, however, the actual numbers at the time of acquisition are paramount to the property’s potential for success. So while the current climate might be the best in years, hopes that there is better weather around the corner is keeping a number of big players out of the market.