104: Huge Commercial Opportunities Arise as Hysteria Reaches Its Peak w/Richard Hill

Multifamily and commercial real estate has been the butt of the joke over the past year. As mortgage rates started to rise, commercial real estate investors were hit hard, as profits became pitiful and asking prices laughable. For months, the media has been predicting a commercial real estate crash, citing a wave of mortgages coming due with sellers who won’t be able to pay the high price of a refinance. And while these fundamentals aren’t wrong, a mortgage meltdown might not be a reality. So instead of speculating, we brought on Richard Hill, Head of Real Estate Strategy & Research at Cohen & Steers, to differentiate the facts from fiction. Richard knows that loans are coming due, and buyers with low-rate adjustable mortgages may be in trouble. But that’s not the whole story, and some parts of commercial real estate could be primed for massive growth that residential investors have no clue about. The opportunities could be flowing soon for those who know where to look. In this episode, Richard will talk about the true risk of commercial real estate mortgages, which sectors are in the most trouble, which are being blown out of proportion, and how much investors can expect prices to drop. Plus, Richard gives his take on the three best times to invest in a quickly changing market like we’re seeing today.  In This Episode We Cover The commercial real estate “crash” and how far prices will actually fall  Commercial debt coming due and which sectors have the highest risk  Bank failures and what’s causing big banks to dump their commercial loans  The future of financing for commercial investments and whether funding will become a challenge  Mortgage exposure and why demanding LTV (loan-to-value) requirements make for better investments  The astronomical tax implications of defaulting on your mortgage (DON’T Do this) When to buy and which industries are primed for growth in the next few years  And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave's BiggerPockets Profile Dave's Instagram James' BiggerPockets Profile James' Instagram Commercial Real Estate Could Crash, But Are Everyday Investors Impacted? The BIG Economic Implications of US Bank Failures Get Real Estate Market Insights from Cohen & Steers Links from the Show Richard's LinkedIn Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-104 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices