Multifamily housing beats hotels, retail, and office as an investment because Fannie Mae and Freddie Mac receive $70 billion annually from the U.S. government to fund multifamily loans. With excess capital and unmet lending quotas, these agencies are creating new ways to expand borrowing capacity for investors.
I always tell people multifamily is a privileged asset class. Every investor must understand that multifamily is different from hotels, from retail, from office. Why? Because there's only one asset class in America that has two quasi-government agencies who receive roughly $70 billion a year from the U.S. government just to lend out. It's called multifamily. Those two quasi-government agencies, Ben, Fannie Mae and Freddie Mac, are struggling to lend out money this year. They've got too much money. They are not able to hit their quotas. So they're actually creating schemes to allow people to borrow more.
