Ken McElroy

My team's data showed 968 Dallas apartments have a debt service coverage of 1.0 or less, meaning 100% of cashflow is used for payments with no room for error. This is a major concern for continued financing, especially as property values decline. #RealEstate #Dallas

I've been in real estate for over 35 years. I've survived the S&L crisis. The dot-com bust. 2008. The pandemic. And I have never, not once in three and a half decades, seen what I'm seeing right now in the rental market. Downtown Phoenix: four months free rent on a 12-month lease. Let that register. A landlord is giving away a third of the year for free just to get someone in the door. West side of Phoenix near the Cardinals stadium? Two to three months free. You can call it a "concession." You can call it a "move-in special." You can package it however you want. But at the end of the day, this is a massive rent reduction. And it's happening because the market is drowning in supply with no way to absorb it. Here's what happened. When interest rates were low, everybody started building. Home builders. Condo developers. Multifamily guys. Office projects. Shovels went in the ground everywhere. Then rates spiked. But here's the thing about construction, once you break ground, you have to finish. You can't stop a two-year build halfway through because the Fed raised rates. So every project that started in 2021 and 2022 kept going. Almost 500,000 new apartment units hit the market in 2023, 2024, and 2025. All at the same time. All are competing for the same renters. More choices for renters means lower rents. It's that simple. Now layer the expense side on top of that. Our insurance across the portfolio went from $3 million to $4 million. One year. A million-dollar increase. And we're not in Florida or California where some operators can't even GET insurance Rents don't go up by a million dollars. That reset came straight out of our cash flow. Property taxes? Cities that gutted themselves with bad policies, defunding police, letting crime run wild, watching their downtowns empty out, they're not cutting their budgets. They're raising property taxes to backfill the hole. We're seeing it everywhere. Utilities are up. Payroll is up. The cost of a refrigerator is up. A five-gallon bucket of paint is up. Getting someone to come fix a gate or patch a roof? Up. So let me paint the picture for you: Revenue is flat or going backwards. In some markets, you're literally giving away months of free rent. Expenses are climbing 3, 4, 5% every year with no signs of slowing down. And if you're one of the operators sitting on floating rate debt that's maturing? Your mortgage payment just doubled. It's a perfect storm. I sat my entire company down, all 400 people, at the end of last year and said: "I don't expect any rent growth in 2026. Possibly not in 2027 either. Strap in." its also the single best buying opportunity since 2010-2012  That's why I put together a FREE one-day virtual event with the sharpest minds I know. you can sign up here  web.thelimitlessexpo.com/home-page

Private credit has been crucial for real estate businesses. The current situation is showing cracks, with a band-aid approach to avoid losses. Banks are wary if collateral value drops below the loan amount, especially as loans mature. #RealEstateFinance #PrivateCredit

Wall Street's housing grip is real, but smaller than the headlines. Memphis leads the nation: institutional investors bought just 4.4% of homes there over the last decade. Their buying is down 65% from the 2021 peak. Congress is banning something that's already fading. Banning institutional investors now is closing the barn door after the horse left. They're already net sellers in most markets. The affordability crisis is a supply problem, not a corporate landlord problem. #Housing #RealEstate Check out the full article: businessinsider.com/us-cities-with…

For the first time ever, data center construction spending has surpassed office buildings in the US. AI isn't just changing how we work. It's changing what we build.

New homeowners spent 27% of income on housing compared to 20% by existing owners, widest gap in 40 years. axios.com/2026/03/18/hou…

The Fed's target inflation rate is 2%, a goal it's struggled to meet, hovering just under 3%. Even 2% inflation significantly impacts purchasing power over time, compounding to 20% over a decade. #Inflation #Economy #Finance

I need to tell you about something that's happening right now that almost nobody is paying attention to. You already know the multifamily market got hammered. Syndicators borrowed against fantasy numbers in 2021 and 2022. Rates spiked. Rents went flat. Expenses went through the roof. Now these properties are worth less than the debt on them. I'm buying some of these deals right now at 50-60 cents on the dollar. The equity is gone. The syndicator is gone. The lender is the one calling me. But here's the part most people aren't seeing. Where did those syndicators get their money? A lot of it came from private credit funds. Companies like Blue Owl, which is now in the news almost daily. These are the middlemen. They borrow from banks, then they lend to operators the banks wouldn't touch because the credit risk was too high. And now those borrowers are defaulting. So think about the chain: The multifamily operator blows up.  That blows up the private credit fund that lent to him. That private credit fund borrowed from a bank. Now the bank's balance sheet takes a hit. The bank tightens lending. Liquidity dries up across the entire system. And that makes everything worse, because the multifamily guys and the private credit guys who are drowning right now? The one thing they desperately need is liquidity. And it's gone. Even Blackstone came out publicly and said they're concerned. When Blackstone is worried enough to say it out loud, pay attention. Now here's what really keeps me up at night. In 2008, you could see it. Your neighbor's house had a foreclosure sign on the lawn. The flipper down the street went broke. It was Main Street. It was visible. This time? It's quiet. It's behind the scenes. It's debt funds. It's institutional equity. It's private credit facilities. It's the money that flows through retirement plans, insurance products, 401(k)s. You know where it ends up? With the person who opens their quarterly statement, sees a number they don't understand, and calls their financial planner to ask what happened. And here's the thing, I don't think we're even close to the end of this.  The multifamily repricing is chapter two. Chapter one was office buildings gutted by work-from-home. I don't know how many chapters are in this book, but I can tell you we're not in the final one. A lot of these lenders and debt funds are still holding distressed assets in their "asset management" column without marking them to market. The real repricing only happens when the asset gets sold. And those sales are just starting. So why am I telling you all this? Because I've been through this before. Multiple times in 35 years. And every single time, the people who understood what was happening BEFORE it was obvious, they're the ones who came out the other side wealthy. The people who waited got crushed. That's why I've put together a FREE one-day virtual event you can sign up here web.thelimitlessexpo.com/home-page

The Strait of Hormuz situation is critical; goods can't pass, and halted oil production won't just restart. Like 2020-21 supply chain issues, recovery takes time. Events unfold in sequence: Venezuela, then Iran. This isn't a quick fix. #Geopolitics #OilMarket

I got a call last month from a lender. Six properties. 1,410 units. The syndicator who bought them is gone. Not "struggling." Gone. Every dollar of equity, wiped out. The investors who wrote those checks? They're not getting anything back. The lender is sitting on dead weight and they know it. So I made an offer. 60% of the outstanding loan balance. Not 60% of what the properties are "worth." 60% of what is OWED on them. We're negotiating right now. Because what other option do they have? A week later, I made another offer. Brand new construction. Never been lived in. Somebody spent tens of millions of dollars to build this thing. My offer? 60% of the construction cost. I'm buying existing properties in Phoenix right now at $80,000 a unit. New construction at $140,000 a unit. I've been doing this for over 35 years. And I'm telling you, this is the same pricing I saw in 2010 and 2011. You want to know what I did in 2010 and 2011? I loaded up. And those deals made me and my investors an absurd amount of money. The same window is opening right now. I sat my entire company down at the end of last year and told them: expect zero rent growth in 2026. Possibly 2027. Strap in. I'm not saying that to scare you. I'm saying it because I've survived every one of these cycles for 35 years. And the people who win are the ones who see it clearly, prepare early, and move when everyone else is frozen. That's exactly why I'm doing something I don't normally do. I've put together a FREE one-day virtual event with some of the smartest people I know. Robert Kiyosaki is going to be there. George Gammon. Jeff Snider. Tom Wheelwright talking tax strategy. We've got experts on gold, oil, AI, and real estate. Nine speakers. One day. Completely free. This is the playbook for the next 12 months, from people who are actually in the trenches right now making moves with real money. I'm going to walk you through exactly what I'm seeing in the market, what I'm buying, how I'm underwriting, and how I'm positioning for what's coming. Because something IS coming. Interest rates, private credit, the banking system, AI wiping out jobs, it's all converging at the same time. And most people are completely unprepared for it. you can register here web.thelimitlessexpo.com/home-page The last time pricing looked like this, it created generational wealth for the people who moved. The people who sat on the sidelines? They're still talking about what they "should have done." I don't want that to be you.

The multi-family market's liquidity has dried up, making problems worse. Deals are now at 60% of the loan value, indicating a significant market repricing. The market has fundamentally adjusted. #RealEstate #Finance

Commercial real estate is facing a triple threat: rising interest rates, squeezing mortgage payments and cash flow, and a surge of nearly 500,000 new apartment units. This means challenges with occupancy, with floating rate debt adding to the pressure. #RealEstate #MarketUpdate

The multifamily market is facing a debt crisis. Owners who borrowed in 2021-2022 based on inflated pro forma numbers are now unable to make payments as rents fail to meet projections. This is leading to forced sales at steep discounts. #RealEstate #Investing #Debt

PadSplit's core idea: affordable housing that's also profitable. In inflationary times, it boosts owner profits while lowering rent barriers for tenants. #AffordableHousing #RealEstate

Millions struggle to find housing due to high upfront costs. Those earning under $35k or without emergency savings, traditional rentals are out of reach. This leaves a huge, often invisible market needing flexible solutions. #HousingCrisis #Rentals #Affordability

Had a great time hosting our first Boardroom event!

Collections rates rarely drop below 97.5% thanks to a simple, bundled weekly payment system. It's not about credit scores or deposits; it's about making housing payments incredibly easy and flexible. #PropertyManagement #RentalTips

Avoid lengthy vacancies and costly renovations! Rent-by-the-room significantly cuts turn costs to about $76 per room, vastly reducing vacancy loss compared to single-family rentals. Enjoy faster turnovers and lower expenses. #RealEstate #RentalIncome

When the market dips, your liquidity becomes your superpower. Having cash on hand allows for better negotiation terms, especially when dealing with banks. #RealEstate #Finance #Investing

Selling a condo with a 2.8% rate? One perspective says liquidity and HOA costs are key. Another argues that locking in low rates is golden, offering immense cash flow potential. #RealEstate #Investing