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Inexperienced Multifamily Investors Could Damage Sector

LOS ANGELES-Small groups of novice multifamily investors bidding outrageous prices for properties whose fundamentals don’t match up are leaving industry executives scratching their heads—and worried.

By Carrie Rossenfeld | Updated on July 10, 2012

(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)

LOS ANGELES-With the multifamily market being touted as both white-hot and a safe bet, a new trend is emerging in this industry sector: Small groups of investors who are inexperienced in owning and operating multifamily properties are outbidding savvier investors for these assets and driving up prices in the market. While this is good news for sellers—and who could blame them for shaking hands with the highest bidder?—CRE experts say it may not ultimately bode well for these investors and the market five years down the road, when rents haven’t risen appreciably enough to cover operating costs and mortgage payments, and these owners are forced to sell at a loss.

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CRE strategies and business decisions are only as strong as the data that powers them, and that data better be correct. This self-assessment will help you gauge your current data management capabilities.

Assessment

Sponsored by Cherre

Data Management Scorecard: A Health Check for Your Data Management Capabilities and Challenges

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