Rob Beardsley

You can find the full episode and more conversations on multifamily investing on my YouTube channel: @RobBeardsley3/featured" target="_blank" rel="nofollow noopener">youtube.com/@RobBeardsley3…

One of the biggest mistakes property owners make is focusing more on new tenants than the ones they already have. Acquiring a new resident often means offering concessions, discounts, or lower rents just to fill a vacancy. From the tenant’s perspective, it can feel frustrating when they see a property advertising better deals for new residents while their rent is increasing. For many residents, staying put is the easier option - as long as they feel they’re being treated fairly. The real challenge for operators is balancing new leasing activity with resident renewals without creating friction with the people already living in the community.

Strong population and job growth can make a multifamily market look extremely attractive. San Antonio, for example, is one of the fastest-growing large cities in the United States. The city added roughly 26,000 jobs over the past 12 months, about a 2.2% increase, while unemployment sits around 3.7%, well below the national average. At first glance, these numbers suggest strong demand for housing. But what happens when new apartment supply grows faster than that demand? In San Antonio, a wave of new apartment deliveries over the past couple of years has significantly outpaced absorption - meaning more units were completed than the market could immediately fill with renters. When supply outpaces demand, vacancies rise and owners begin offering concessions such as one month free rent or six weeks free to attract tenants. As a result, occupancy has declined and effective rents have softened over the past two years. This is why investors must always evaluate both sides of the equation. Strong demand is important, but when supply grows faster than the market can absorb, performance can temporarily soften until the market rebalances. If you enjoy insights like this on multifamily markets and passive investing, join our bi-weekly newsletter where we break down trends, opportunities, and risks investors should be watching. Link in the comments.

You can find the full episode and more conversations on multifamily investing on my YouTube channel: @RobBeardsley3/featured" target="_blank" rel="nofollow noopener">youtube.com/@RobBeardsley3…

A common belief in multifamily investing is that Class B and C properties are the most recession-resilient. In reality, that assumption can be misleading. Higher-income tenants in Class A properties typically have more income relative to rent and greater savings, which often makes them more capable of continuing to pay rent during economic downturns. Another key point many investors overlook: when people talk about “property class,” they’re often mixing two different things — the quality of the building and the quality of the location. And in many cases, location matters more than the building itself. For example, a Class C property in a strong Class A location can often be a far better investment than a Class A property in a weaker area.

Join us LIVE on March 19th at 2 PM EST for Plug & Play Fund Management: The modern capital raising blueprint. @CraigMcGrouthe2 and I, along with special guest Travis Smith from Tribevest, will break down how to structure a fund, streamline investor communications, and implement systems that make capital raising more efficient and scalable. Click the link in the comments to register - don’t miss it!

Here’s the full video where I answer the questions in detail: youtube.com/watch?v=sLbVDe… If you have other questions about the multifamily market, capital raising, or investing in general, drop them below or send me a DM. I’d be happy to answer them in a future video.

A few weeks back I asked our LinkedIn and Instagram followers to send in their questions about the multifamily market. Questions about where we are in the cycle, hidden risks in today’s environment, protecting investor capital, underwriting deals, and more. I recorded a Q&A breaking down how I’m thinking about these topics right now – and the principles we use at LSCRE when evaluating deals and navigating today’s market. The full video is linked in the comments. If you have other questions about multifamily investing, drop them in the comments or send me a DM – I’d be happy to cover them in a future video.

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You can find the full episode and more conversations on multifamily investing on my YouTube channel: @RobBeardsley3/featured" target="_blank" rel="nofollow noopener">youtube.com/@RobBeardsley3…

Most people delay starting because they think they need more experience. They plan to spend 6 months, 2 years, sometimes even 5 years preparing before they take action. In many cases, the experience they are looking for only comes after they start. You learn faster when you're actually doing the work, making decisions, and solving real problems. At the same time, the other side of the lesson is just as important. Action matters, but so does patience. Moving too fast without thinking things through can create mistakes that take years to fix.

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There’s been a lot of talk about 50-year mortgages, with critics calling them unfair or “indentured servitude.” But in reality, a longer amortization is better for the borrower. In commercial real estate, the holy grail is no amortization at all. We often secure full-term interest-only loans, meaning we don’t pay down principal for the entire term. Why does this matter? If we borrow at a 5% interest rate, keeping the loan interest-only minimizes payments and maximizes cash flow for investors. The shorter the loan, the more favorable it is for the lender, not the borrower. This structure allows us to take advantage of the time value of money and spread between interest and property returns, ultimately boosting investor returns while keeping risk managed.

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Full conversation from this episode of the LSCRE Podcast here: youtu.be/rFLR0fylJD4?si… We cover:
 • Why the value-add narrative is starting to crack
 • How new supply is changing multifamily dynamics
 • What investors should be looking for in today’s market.

Value-add used to be synonymous with multifamily investing. For years the playbook was simple: buy an older property, renovate the units, raise rents, and create value. But that strategy becomes much harder when the market is flooded with new supply. When brand new properties are offering better amenities, better finishes, and concessions, it’s difficult for renovated older units to compete. And there are physical limitations you simply can’t renovate your way out of. For example, if a property has 8-foot ceilings, there’s only so much you can do. Stainless steel appliances and new flooring won’t turn it into a Class B property. There’s nothing wrong with owning a Class C property. But investors need to be realistic about what a property actually is and what it can become. Strategy always has to adapt to market conditions. In this clip from the LSCRE Podcast, we talk about why value-add is becoming harder in oversupplied multifamily markets.

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One of the most overlooked benefits of multifamily investing isn’t the cash flow. It’s the tax advantages from depreciation. Many investors wait until the end of the year looking for ways to offset income. They’re searching for depreciation to reduce their tax burden across their portfolio — or, if they qualify as real estate professionals, to offset active income. A well-structured multifamily investment can often generate a large non-cash paper loss in the first year through depreciation. In many cases, a $1M investment could generate hundreds of thousands of dollars in depreciation on your K-1 through cost segregation and bonus depreciation. That loss can potentially offset other income while the investment continues producing cash flow. That said, it’s important not to let the tax tail wag the deal dog. Investing in the wrong deal or with the wrong sponsor - just to chase tax benefits can put your capital at risk. The better approach is to find a strong deal, with a great operator, where the tax advantages are simply an added benefit. If you're interested in multifamily investments with strong cash flow and tax advantages, join our investor list using the link in the comments.