A short YouTube monologue by Courtney Moeller criticizing current multifamily real estate trends: she argues that many new syndicators lack real estate-cycle experience, the market has become institutionalized, and former value‑add opportunities from under‑managed, family‑owned apartment buildings have largely disappeared, compressing multifamily margins.
I'm not a big fan of multifamily. I feel like we have all of these groups that are churning out real estate syndicators and most of these people that are raising and managing these apartment complexes have no real estate experience. They haven't been through real estate cycles and they're not bringing on people that really have the expertise either. And on top of that I feel like it's been very institutionalized. 20, 30 years ago, mom and pops owned apartment buildings and you could really go in and buy them and there was a ton of value add. A lot of of these family owned businesses don't have good accounting in place. They don't even know what the current the markets for rent are and things like that. So there was a ton of ways to come in and fix things up and bring it up to standard and get rates. I mean just by bringing the rates up to whatever the market rate should be was substantial. And I feel like those days are really gone and the margins in multifamily have just gotten smaller and smaller.
