In today’s podcast episode we interview John Cohen, Founder and Owner of Toro Real Estate Partners. He discusses the challenges of investing in the multifamily real estate market due to high capital inflows and compressed returns. He notes that the market has evolved, with new groups entering the space and investors struggling to compete with lower-grade property buyers.
Additionally, John highlights the distress of deals done before or during the early stages of the pandemic due to lack of cash flow or banks refusing to renew loans. However, he also points out the shortage of affordable housing and strong housing market fundamentals. He explains how banks are trying to avoid downward valuations, asking for more equity from sponsors to reduce their risk.
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You will hear quite a bit of real estate terminology in every episode. We've aggregated the most common questions for you in the link below!
https://bit.ly/learn-the-lingo
CHAPTERS:
02:25 - A Quick Guest Introduction: Who is John Cohen?
04:21 - John's Market Insights
07:13 - Opportunities in Value-Add Properties
08:38 - The Big Shift in Market Deals
14:30 - It is a RIPPLE EFFECT!
17:02 - Operator Agreement: The Mechanism of Capital Calls
24:04 - Be Cautious of the White Knights!
25:47 - Three Things LPs Should Look At
29:35 - Ending the Show with a Little Bit of Gratitude
30:42 - Thanks for Listening to The Limited Partner Podcast!
