Big Mike Fund Podcast
058: COVID-19 Crisis: What’s the Impact on Multifamily?
Today, I’m once again talking with Whitney Sewell, the Director at Lifebridge Capital. Whitney and I talk about the Coronavirus crisis, and its present and future impact on the multifamily space.
These are difficult times for the country and world. Some of you may be losing sleep, or feeling grateful for a reserve budget and conservative underwriting. Stay healthy, keep your distance, and keep washing your hands.
01:00 - Whitney’s background
01:56 - COVID-19’s effects on multifamily space now
03:20 - COVID-19’s future impact on multifamily space
04:12 - CMBS freeze and next steps with tenants
06:28 - Proactive about possible job loss and vacancy rates
08:20 - Predicted and projected health perspective on economy
11:00 - Fear, fluctuating numbers, and looking forward to future opportunities
12:15 - Are deals going to be re-priced or re-traded?
15:23 - Marketing and always looking for more deals
18:53 - Distressed sellers, distressed situations, and big enough discounts
25:40 - Rent’s due: Who will or won’t pay, and why?
32:24 - Reaching out to Whitney Sewell
33:19 - Thank you for listening to the Big Mike Fund Podcast
“We had such a hefty reserve budget before we ever planned, before we ever knew anything, obviously, like this was going to happen. I'm so grateful that we did. Now, we can even hit something like this and we're okay. We're not losing sleep over it because of that.” - Whitney Sewell
“Is it going to affect us? It's going to. I think it's going to affect us all in some way. No doubt about it. Already is. We're working with our management company. We're taking strides to be proactive.” - Whitney Sewell
“I think there's going to be some opportunities for operators that are prepared. I think there's going to be some opportunities. I think there's going to be deals too that some operators have to sell and that are going to be discounted. I think we're prepared for that.” - Whitney Sewell
“People who got properties, unless they have extreme distress, they're not selling. The people who are buying, I guess they want to get a good enough deal. I think that the business now just broadened quite a bit because of uncertainty.” - Mike Zlotnik
“There's going to be tenants that are going to still pay their rent because they know they should and they're supposed to. There's going to be tenants that can't pay their rent legitimately, they lost their job, they live paycheck to paycheck, they cannot make it happen. There's still going to be some that just take advantage of the situation, no doubt about it.” - Whitney Sewell
Whitney Sewell: Call or text at 540-585-4338
Brought to you by Mike Zlotnik (Big Mike) of Big Mike Fund Podcast