If 2021 was the search for the new normal, I think we found it in 2022. The new normal is currently a state of in-between and uncertainty. You couldn’t go anywhere in 2022 without hearing two words – “inflation” and “interest rates”.
Legendary investor Howard Marks recently spoke about a “sea change” coming for the stock market where investors would begin to look differently at how they invest. This rings true for all financial markets including those impacting real estate investors.
While no one really knows what will happen in the coming year one thing is true; the markets will keep moving.
If you didn’t catch these articles before then this may be a good primer as you prepare for 2023.
Below we have created a roundup of the top articles that our readers dug into during this past year.
What Documents Are Needed for Real Estate Syndication?: Investors were trying to get themselves educated on what it takes to complete a syndication, legally. This year we saw readers dig into the finer nuances and mechanics of what exactly do you need to complete a syndication. Specifically which legal documents are reviewed and signed. If you are thinking about leading or investing in a syndication this is a great article to get started with.
How Do Rising Interest Rates Affect Multifamily Apartment Real Estate?: Interest rates were on everyone’s mind this year. Investors and home buyers alike saw interest rates rise at a speed and voracity unlike anything anyone could have predicted in 2021. The Federal Reserve has shown that they are committed to continue rising rates for the foreseeable future until they reach their desired terminal rate and economic metrics. This left investors hungry to understand how these interest rate changes would impact their investments.
The Power of Forced Appreciation: Appreciation over the previous couple years seemed to be a given. As interest rates rose, and markets froze, appreciation no longer seemed as certain as before. Fortunately for multifamily investors, appreciation is not only subject to market forces but also many aspects under the control of the investor. In this past year readers looked to increase their knowledge on how they could keep appreciation going even in a sideways market.
Pension Vs. Real Estate: Talk of recession heated up during this year. Many people who experienced firsthand the devastation of the Great Recession or knew friends and family who experienced great losses began to brace themselves for another impending recession. The great resignation was fueled by many people quitting their jobs for higher paying positions but also many older individuals retiring early. Would these retirees need to come back into the work force to be able to make ends meet? One recurring thought was “how do I secure my retirement?” In this article we looked at retirement planning from the viewpoint of having a pension or investing in real estate.
What Bubble? Smart Ways To Prepare For And Invest In A Bubble: Speaking of recessions and bubbles – everyone thought this would be the year the investing “bubble popped.” Many of the individuals who had been calling for “popped bubbles” over the last few years unfortunately missed out on many amazing opportunities. The readers of this article learned that there is no use in trying to time the market but rather make smart investments at all points in the market cycle.
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