Reid Bennett
@ReidBennettCCIM
Followers
5,693
Following
863
Media
199
Statuses
4,665
National Council Chair of Multifamily #MultifamilyReidOut #multifamily #affordablehousing #LIHTC Opinions are my Own
Chicago, IL
Joined January 2010
Don't wanna be here?
Send us removal request.
I bought an SUV in 2021 from my local car dealer. They charged me $5,000 over list price. They almost laughed at the fact they could do this. They are now reaching out for my business like crazy. All I think about when I see their brand is the $5,000 over list they charged me.
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Distress in the
#Multifamily
space is NOT created equal across the Nation...
This map by
@TreppWire
shows why those waiting for a wave of distress in the
#midwest
might be sitting on their hands a while longer.
Here in the Midwest, we do not see the major swings in value seen
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My team and I track EVERY SINGLE
#Multifamily
property across the
#Midwest
- 50-Units and above.
We use 4 different systems and aggregate all of the information into one centralized database.
If the properties have been on the market in the past 15 years, we also have the
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What's up CHEIF?
How is it going SPORT?
Hey BUDDY
How can I help you, FRIEND?
Nice Driving, HOSS
Good job, ACE
Easy there, GUY
Don't be the DUDE that refers to people this way.
Which one's am I missing?
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📉Stocks are falling like a recession is looming
📈Oil prices are rising like there is no chance of a recession
📉 Deal Volume is down 71% in the Multifamily Space
📈Interest rates are rising like we have 11% inflation
📉Gold is falling like inflation is gone
📈Housing
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How is the
#Multifamily
Market? Well... It depends.
The market cycle metrics of of a particular market will determine how this question is answered.
#Recession
is not equal in all markets.
One of my favorite updates from Integra Realty Resources is their Multifamily Market
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I have an owner of a MultiFamily asset telling me how great his fixed rate loan at 3% is and why someone should assume his $8 million loan. The problem is that he wants $15 million for the complex. This is the disconnect on a loan assumption. A loan is only as good as the LTV
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Just received a call from a
#multifamily
owner I was hounding in 2021 with a buyer willing to pay a 2.63% cap for an unrenovated 1982 built complex here in the
#Midwest
He said he is now ready to accept the offer...
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@JustinSpaulding
A bunch of additional information is needed to make the analysis BUT… If you don’t sell it for that number, you are essentially buying it yourself for that number.
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Morning Routine:
4:00 am - wakeup
4:15 am - meditate
4:30 am - 1,000 push-ups
5:00 am - yoga
5:30 am - eat wheatgrass & drink honey
5:45 am - balanced on one foot for 15 minutes...
Just kidding - dragged my ass out of bed at 6:00 am to start the chaos of another week!
Happy
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It’s tough to pick up a call from an unknown number these days with all the spam calls.
I recently picked up a call from a number I didn’t know. It was a buyer of Multifamily deals across the country.
He said, “you are the only broker that has picked up my call today.“
We
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🏠The median price of an American home in 2023 is $371,200
💰 This would require the borrower's pre-tax salary to be about $100k to pay off a 30-year fixed rate mortgage (without taxes and insurance).
📈 Due to the rising rates, the salary needed to purchase a median-priced
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🚨 ALERT!! 🚨 The
#MULTIFAMILY
transaction volume for the 1st Quarter of 2023 is down 83% year over year! ($5 million and up)
That means....
All of the buyers and brokers in the space are scraping for the same 27% of the deals that have gotten across the finish line this year.
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We are turning down listing opportunities. If we are not inline with sellers expectations, we cannot spend the time, money and reputation to list deals that will not trade at market prices.
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Just had it happen again... Reminder that this "tactic" does not work:
Buyer (let's call him "Richard Head") was 55 minutes late for a tour. This wasn't the worst part... Rather than immediately apologizing, he starts pointing out all of the deferred maintenance he sees at the
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Am I the only one that gets annoyed with a voicemail from somebody I don’t know simply asking me to call them back without some kind of subject context?
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I had a conversation yesterday with a
#multifamily
syndicator. He asked me what I believe the cap rate will be in 5 years so he can put it into his model...
I said, who the hell knows???
There was a pause and then I think even he realized how crazy it is to predict that figure,
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@jt_ryder
Everyone wants to buy direct from Stan! He will leave $2 million on the table to avoid a $200k brokerage fee!
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I once had a multifamily syndicator tell me: “If it’s a good deal, I buy it for myself. If it’s a bad deal… I syndicate it!”
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As I cross the 5,000 followers mark here on X (Trying to get it up to at least the 15,704 on LinkedIn), I have been thinking about some of the CRE profiles I follow with HUGE numbers and what that actually would look like if you got them all in one space :
@constantraise
11,200
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Once again for those in the cheap seats...
If you buy a
#multifamily
asset that makes sense with today's debt, on actual, in place numbers, you are going to do well.
Don't try to time the bottom of the market. You will miss it.
#MultifamilyReidOut
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@drewbreneman
Chicago is a prime example of a media frenzy celebrating the negatives. I have lived in Chicago for the last 26 years and find it is the absolute best city to live in… for the 3 weeks of summer!
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#askhole
[ ask-hohl ] noun - most often found in real estate or law.
DEFINITION
1. a person that continually asks for information from an expert with zero intent of utilizing the expert when making the decision to move forward.
2. a person trying to get the most free advice
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A buyer submitted an LOI on a
#multifamily
complex we are selling. It went back and forth a couple of times until a deal was struck.
As soon as the LOI was signed, the buyer started telling me all the things wrong with the property. He thought the renovation was cheap from the
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As a CRE broker, it is amazing how easy it is to negotiate a deal to the point where you are exactly the commission away from where the seller is willing to sell and the buyer is willing to buy.
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Reminder: The CRE buyers that state, up front, they never RE-TRADE from LOI to closing, always re-trade and try to do it multiple times during the transaction.
Happy Thanksgiving!
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@DTouchatt
So true. A dissatisfied customer will tell between 9-15 people. A satisfied customer might tell 6. The tough part for businesses is that dissatisfied person will not complain to the company but 91% of them will never return.
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Owner of a
#Multifamily
asset I have been sharing information with for 5+ years: “I just saved a $200,000 brokerage fee selling my deal direct to ________”
Me: “They typically offer on all of our
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Every
#CRE
deal dies 5 times before it closes.
This is what an old mentor told me long ago. It is true, whether you are aware of all the deaths or not.
It’s actually amazing that any deal gets across the finish line with all of the moving parts and personalities in each
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Third one if these we came across in this
#multifamily
complex. Almost nothing surprises me in the
#CRE
world… almost.
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One of my colleagues was recently fired as VP of a local bank here in Illinois.
A lady came in an ask for him to check her balance...
So he pushed her
😂 Have a great week!
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@realEstateTrent
Having the same conversation weekly. Your picture from a couple years ago still rings true…
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Bad buyer tactic
#10
when touring a
#MultiFamily
property and the owner is present, pointing out all of the flaws and deferred maintenance thinking it is setting up a
#lowball
offer.
It doesn’t work. It only insults the seller and makes them NOT want to deal with any offer
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Going to have to turn up the volume on this one...
📈 525 basis point increase by the fed in a year and a half
🏢 complex in escrow -buyer still needs $750,000 equity to close or he blows out
👨💼 $40 million pitch prepared but unable to provide a debt quote to substantiate the
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@MultifamilyMad
You get a capital call! And you get a capital call! And you get a capital call!
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Morning hack of the day…
Put collagen peptides in your morning tea or coffee. It has been a life changer for me. Can’t taste it at all.
Key health benefits include:
- strengthening bones
- improved skin elasticity
- increases muscle mass
- reduce osteoarthritis pain
Nothing
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I don’t think in the history of the world:
Telling somebody,that is elevated,to “calm down” has never worked.
Even knowing this, it always seems to be my “go to “tactic with my wife.
It continues to never work…
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It’s 10.31 day… so where are all the 1031 buyers??
Oh yeah, they didn’t sell last year and thought they could do better than the 4 cap we delivered on their un-renovated, 1989 built apartment complex.
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HOLY COW! This is pretty fun. To be in the TOP TEN with this group of
#CRE
creators is pretty exciting!
@kenashley
, Nicholas Luczyszyn and the entire team at
@creisummit
have really created a spectacular community on all social media platforms and I have watched from the
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Reason
#1
for answering your phone in the
#CRE
biz... I recently answered a call from StripmallGuy
@realEstateTrent
! and
@MultifamilyMad
! I have been following these guys for a while and love their stuff
I'm starting to dig
#retwit
on
@Twitter
!
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In my 22 years in CRE brokerage, no matter the size of the deal, it is extremely easy to get the buyer and the seller to hit a number EXACTLY a commission apart!
It’s the difference between making a living and having deals die.
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On many deals we have closed, I have built a relationship with the seller for 7-10 YEARS. Real Estate
#CRE
is a long game. Don’t quit now.
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My new book on Reverse Psychology in the Multifamily space is out!
Please do not buy it...
#MultifamilyReidOut
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Commercial Real Estate
#CRE
is simple.
All you need to do is raise rents and lower expenses.
At least that is what all the sellers I talk to each day tell me the next buyer can easily do with the asset!
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@seandsweeney
@stevegarthwaite
It’s amazing the reaction you get when you are at a networking or company event when you aren’t drinking. People seem confused. Many give the old “good for you” response.
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🔥I don’t smoke cigars often…🔥
But when I do, it’s going to be a Ruben The Cuban Cigar
First and only time I’ve ever received a “Business Card Cigar” Thanks to my friend from the old neighborhood,
@RubenRuban
Genius concept with his QR on the label!!
Hand rolled in Miami,
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As I stepped into the shower this morning, I realized my wife seems to be creating some sort of torcher chamber.
I wonder if
@huntercoldcalls
has time to use these in the cold showers?
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October 2021 - Broker : You will need to get your fee from your buyer
October 2023 - Broker: Of course we cooperate and are offering a co-op commission
It's amazing how the current market brings out "cooperation" from brokers that don't normally proactively cooperate.
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I just had a guy tell me how experienced he was in the Low Income Housing Tax Credit (
#LIHTC
) arena. Only problem is he kept using the acronym wrong… was saying “Lickt” as my 7 year old would say… Super Sus.
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What an incredible few days, in Miami Beach, with the top
#CRE
coaching minds in the industry!
I’m very humbled to be a part of
@MassimoGroup
and am bringing back tons of valuable nuggets, not only for my coaching members, but for all of my
#multifamily
clients.
There are
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The Ten Year Treasury hit 5% today. Here is why
#CRE
deal volume has been down 62-73% across the country.
💸 Higher Interest Rates mean Higher Borrowing Costs
📉 This reduces the amount of money people are willing to pay for assets.
Every 100-basis point increase in the
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Me having dinner last night after a week of listening to people telling me how the real estate market is going to collapse next year.
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“You don’t just take the highest price?”
This was a question my dad (a retired high school teacher and principal) asked me when I was explaining our process on a 350 unit
#multifamily
portfolio we were selling.
We received 21 written offers.
He understood after I explained
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600 DAYS AGO
That is the last time the year was 2021.
How many more days will it take before people stop telling me what they were offered in 2021?
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Okay… we all have 2 more months to make up the 70% drop in 2023 CRE deal volume. Let’s GO!
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I’m landing in Miami for a conference.
Literally just texted a client of mine I’m meeting that I don’t know the hot places cause I’m 38.
It took me a while to realize I’m actually 48.
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Good morning to everyone, except the buyer that sees the sellers contact information in the initial draft of the contract and starts reaching out direct. Never ends well.
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🏆 This is even better than the Grammy Awards! The American Apartment Owners Association Rent magazine just put out the best of 2023 and I am pumped to have received some hardware from them!
Allen Artcliff-Cronrod has done an amazing job for the members of his organization as he
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⚠ 🤮 Beware of "Commission Breath" in this volatile CRE market!
📉With many CRE firms reporting significant losses and major attrition in the brokerage industry, Commission Breath is popping up all over the place...
Com·mis·sion Breath /kəˈmiSHən//breTH/ - Invisible stench
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I always get sick during the week days. It must be my weekend immune system.
Have a great weekend!
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@realEstateTrent
It’s been an extremely tight market for the last 10 years! Proximity to Chicago without being in Illinois has helped the area for sure…
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@constantraise
It’s pretty incredible. “They should just assume my great rate and pay me for the 2022 value.” All day.
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Many
#multifamily
owners are seeing a huge uptick in fraudulent rental applications, something we rarely, if ever came across a few years ago.
📈In fact, National Multifamily Housing Council completed a recent survey and over 70% of major apartment landlords report a spike in
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@OchoCortez
@TreppWire
Percentage of Multifamily bank loans with potential performance issues, by region.
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@kylematthewsceo
And the longevity of a
#CRE
career is 10x that of a professional athlete… and a bit easier on the joints! 😂
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I just had a
#multifamily
owner tell me a broker told him he would list his complex for $12 million and if it didn’t sell in 90 days he would guarantee to buy it for $9 million. I’m not following the logic. BTW, it might be worth $9 million.
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🔌 This year, at the National Multifamily Housing Council Annual Meeting, it was all about connections for Cody Doran - Multifamily Specialist and me.
🤝 We focused on connecting people and figuring out ways to help as many people as we could during the week.
💰This particular
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A.I. is blowing my mind. My 8 year old "created" a new football team and he is recruiting the neighborhood kids to join by writing their names on a piece of paper we carry around on our dog walks.
Over Thanksgiving break, he wanted help creating the brand. I went to ChatGPT and
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@realEstateTrent
Very timely message SMG! I have been doing this for 22 years and I even have a bit of 7 year amnesia. Amnesia about what happens when one or multiple deals fall through that have nothing to do with market conditions. Amnesia about what it is like to scramble around to pay taxes
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I was going to go as the scariest thing I could think of for Halloween, high interest rates.
But everyone is going to be going as those.
So I decided to go as a maturing bridge loan.
#MultifamilyReidOut
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If one of the first things a
#multifamily
buyer tells me is that they have never Re-traded a deal from LOI to PSA, I immediately know they are going to re-trade the deal.
#retwit
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Headed to MIAMI to meet with some of my fellow
#CRE
coaches, arguably the top in the country!
@MassimoGroup
has set up an amazing week in Miami for the coaches and Massimo team members. So pumped to be a part of this group and to pick up some nuggets to bring back to my coaching
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@Stealx
HOAs are the worst! Take a bunch of people that have no real estate experience, other than the unit they own, and have them making substantial real estate decisions for all owners is simply amazing.
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We have a
#multifamily
asset in the
#Midwest
for sale with a $136,000 monthly rental income ($1,632,000 annual). It has an assumable loan that is fixed for another 30+ years. What do you think?
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@Stealx
This is unbelievable. Thanks for sharing. All multifamily owners should pay attention to this.
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Just had a broker reach out to me about a deal. He then got me on the phone with another broker that shared the deal with him. Even THAT broker didn’t have a listing. This is what we call a good-ole-fashion DAISY CHAIN. It happens during every
#CRE
slowdown.
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The main issue I have with working from the home office is my wife can “just one more thing” me to the point that the commute would be a wash!
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Even in the Midwest, are there any CRE Insurance companies providing full coverage on an apartment building for less than $500 per unit?
@skylarromines
?
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“I could end the deficit in 5 minutes. You just pass a law that says that anytime there is a deficit of more than 3% of GDP all sitting members of congress are ineligible for reelection.” - Warren Buffett
I'm guessing this might take a few more months with the deficit expected
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@moseskagan
Ha! So the old “buy low, sell high” really means “buy deals from a crappy, inexperienced broker, sell with a sophisticated, experienced broker” 😀
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I believe that everyone should work at least one year in the
#Restaurant
Industry. Being in a subservient position for at least this time frame will allow the population to understand how to treat other people. It should be a prerequisite to life.
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@realEstateTrent
My wife does the same thing. She even knows the extra 4 digits of our zip code. Way too many boxes are on my front porch each day.
My neighbor even asked is we had a home business where we sold and received goods.
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I immediately cringe when someone in
#multifamily
asks “So what’s the cap rate?” I guess it’s a logical question but the NOI in the
#apartment
space is vastly different between certain owners.
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“You brokers always talk about cap rates, IRR and principal reduction. All I care about is the CASH in my pocket” Quote from one of my long term clients as he pats his front right pocket while saying CaaaaSH with a long A.
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As it relates to real estate transactions next year, my theme is:
Many More in 2024!
Happy New Year!
#MultifamilyReidOut
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One of my multifamily clients said his tenant called him up and told him he’s gotta leak in his sink…
He told the tenant: “Go ahead, I’m not judging”
😂😂😂😂😂😂😂😂😂😂😳
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@realEstateTrent
You raise a fantastic point. The main thing for me when talking to an owner verse texting is there are certain things that come up in the conversation that never would’ve come up in a text conversation that could lead to an opportunity that you couldn’t possibly have imagined.
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