Ep. 99: Top Multifamily Markets in the US with Neal Bawa

Looking to find the top multifamily markets to invest in today? Then you’ll want to hear what Neal Bawa has to say. Neal is known as The Mad Scientist of Multifamily, studying data and trends constantly to identify the top markets for multifamily investing. On this episode, we go through the top multifamily markets across the country including the top spots in Florida, Texas, Utah, and the Midwest.  

Partner: Get Your Early Bird Tickets to the Midwest Real Estate Networking Summit

Key Market Insights

• Controls a portfolio worth $150MM
• Interest rate hikes and recessions: the two don’t typically happen simultaneously
• Cost for rate caps has dropped 40% due to the Federal Reserve announcement
• Neal believes rates will remain low for investors
• Looking at bridge loans that are 3+1+1 instead of 10-year loans
• Florida 500 people a day 36,000 in-migration annually
• States that are not California are doing well – CA is a mini-America with 25% of the economy
• States poised to do well: WA, OR, ID, UT AZ NV, GA, FL, TX
• Looking at Fort Worth, Houston, Jacksonville, and Tampa
• Dallas has a trifecta of developers, syndicators and investors
• Corridor of Opportunity: City of Daytona, runs through Orlando, through Tampa through Bradenton, now extends to Cape Corral and Ft Myers
• Orlando is driving the growth, with people having concerns about hurricanes
• Job growth is close to 4%
• Becoming a healthcare destination
• Low-cost metros that are close to high-cost metros have done well: Vegas to LA, Boise to PNW, Phoenix to CA
• Midwest Opportunities: Indianapolis and Kansas City, Missouri are both seeing great opportunities
• Costar, Local Market Monitor, Housing Alerts, Neighborhood Scout, City-Data
• Utah’s Corridor of opportunity: Ogden to Logan, Provo, Spanish Fork
• Why Utah: Mormon’s produce a large number of babies, invested heavily in their infrastructure, Mormon church is the richest church in America
• Adobe has established a center in Provo, Google Fiber wired the city for free
• Two world-class universities: Brigham Young and Utah Valley
• Young population is driving tech, 20 minutes from world-class skiing
• Use City-Data to track population growth, will drive up median HHI, median house/condo value, crime decreasing, and jobs
• Had one disastrous project in his life and wishes he had a mentor to help
• 10,000 people per year can make better investment decisions
• When he does education, he also finds partners, deals, and investors

Bull’s Eye Tips:

Winning Your Market: Work the property, be an interventionist property manager

Tracking Market Changes: Constant research

Daily Habit: Write down what he wants to do the next day

Resources:

Costar

Local Market Monitor

Housing Alerts

Neighborhood Scout

City-Data

Best Business Books:

The One Thing by Gary Keller

Digital Resources

City-Data.com

WeAreApartments.org

Udemy

Tweet This: “America is splitting into two countries: Cold States are Losing Population” “Interest rate hikes and recessions: the two don’t typically happen simultaneously” “California is doing a great job of driving people from California” “Utah has the 2nd fastest growing economy in US” “Provo will be Austin in 10 years” “A speculator bets on the future, an investor bets on the past”

Places to Grab a Bite:

Shalimar in Fremont

Connect with Neal:

Email: neal@multifamilyu.com

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