The Apta Properties team attended the Best Ever Conference in Salt Lake City, Utah from March 7-10th. This year’s event was hosted by Joe Fairless, Co-Founder and Partner of Ashcroft Capital, a multifamily investment firm. This event also featured keynotes from huge players in the real estate investing arena like Neal Bawa, Kathy Fettke, and others.
When it comes to multifamily investment, there are a lot of experts and successful investors who have valuable insights to share. Learning from the best of the best in this sector can help you as an investor develop an understanding of the market, maximize your returns, achieve financial freedom, and avoid common pitfalls. We had the opportunity to speak with John Chang, Senior VP of Marcus & Millichap, a leading investment firm, and talk about his economic outlook for 2023.
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Are We Going into a Recession? Depends on Who You Ask.
Chang describes that currently the U.S. is experiencing a yield curve inversion, which is when long-term interest rates are less than short-term interest rates. This can be an indicator of a potential economic downturn. Basically, an inverted yield curve shows investors that interest rates will fall in the future and implies that investors can expect economic growth to slow. Historically, recessions have proceeded yield curve inversions and usually happen within 6 to 24 months.
However, unemployment is low by historical standards and the US is adding new jobs and some things are already adjusting back to normal. For example, the price of gas is down, and the cost of lumber is lower than it was in 2019. Regardless of which data you look at, the key is to find deals in recession-resistant areas and in low-risk assets, for example, multifamily investments or self-storage.
What is Apta Doing to Combat the Unsteadiness of the Market?
Apta Properties focuses on large-scale multifamily assets that house families around median household incomes to protect our communities and investments from a potential recession. We extrapolate the markets with the most diversified economies and robust job and income growth using statistical and economic data. We take advantage of demographic trends, which are long-term and less volatile cycles that produce steadier and consistently greater returns than the stock market.
At Apta we are committed to lifelong learning. Always. That is why we dedicate our time to attending these events to learn from other successful real estate investors. We are constantly assessing the market from the best of the best to find strategic ways to create value in any market environment so that we can continue to protect and grow the wealth of our investors and ourselves.