MB 208: Is the Sky Falling? – With an Expert Panel of Multifamily Operators

Beyond the risks it poses to our health, the Coronavirus is causing chaos in our economic system as well. Businesses have closed their doors and many Americans have lost their jobs or had their hours cut. And the stock market is on its way down. But what does it all mean for us as multifamily investors? Is the sky falling? Or are there things we can do to protect ourselves and serve our tenants in this challenging time?   On this episode of Apartment Building Investing, I’m sitting down with an expert panel of multifamily operators that includes Drew Kniffin, Brian Burke, John Cohen, Reed Goossens, Andrew Cushman and Ellie Perlman to discuss what we are doing to protect our investments and our investors through the Coronavirus pandemic. We share our strategies for income preservation and expense reduction, explaining how we are supporting tenants through the crisis and what programs we are leveraging to keep our employees on payroll. We go on to address how COVID-19 is likely to impact passive investors and offer insight on what they can do to take advantage of the shift to a buyer’s market. Finally, we explore the short-, medium- and long-term implications of the economic fallout from the Coronavirus and describe the incredible wealth-building opportunity available to savvy real estate investors in the months to come. Listen in to understand what defines a good deal in the current environment and learn how to use this time to prepare for the next up cycle! Key Takeaways What Andrew is doing as an owner to protect his investments Put together resources for tenants Negotiate with service providers to cut costs Apply for Paycheck Protection Program Flexible with tenants, reward early payment No increase in rent on lease renewals

How John’s team is navigating the Coronavirus crisis Reach out to tenants with message ‘here for you’ Focus on tenant retention, mitigating expenses

Ellie’s insight on tenants who can’t pay vs. tenants who won’t CARES Act prohibits evection whether lost job or not Depends on prior relationship with tenants, location

The additional things Ellie’s team is doing to navigate COVID-19 Offer furnished model units to traveling nurses Security deposits to pay rent, replace with insurance

The additional things Brian’s team is doing to navigate COVID-19 Refer tenants to Project Porchlight financial counseling Postpone rent or amortize over next several months $50 grocery gift card if reach out to explain situation

Brian’s insight into the Paycheck Protection Program SBA loan to cover 2.5X payroll if keep employees May not apply to third-party property manager

Reed’s...