When asked about the current real estate investment landscape, Tseko expressed optimism, stating, “I think it’s going to be a Robin Hood moment. In the next 12 to 18 months, I think there are going to be fantastic deals. In that sweet spot of $20 million to $150 million, there’s going to be some great opportunities.”
Debt Maturity Driving Opportunities
Tseko attributed this optimistic outlook to the wave of debt coming due on multifamily and commercial properties. He highlighted, “I think now is the time to buy, especially if you’re going to hold onto these assets for the long term. The higher and longer the debt is up, the better deals you’re going to see in real estate.”
According to industry data:
The Mortgage Bankers Association estimates $4.47 trillion of commercial real estate loans are on lenders’ books, with roughly 60% due by 2027.
Multifamily properties account for the largest share of maturities, exceeding $1 trillion.
More than $700 billion in loan maturities is expected this year, with multifamily and office sectors facing the largest share.
Tseko underscored the importance of understanding the current debt landscape in real estate deals. He emphasized, “What I’m finding right now is that debt is the biggest issue in the real estate market. When debt goes from 3.5% to 7.5%, it’s a 400-basis point spread. What I’ve seen right now is cap rates have gone 150 to 200 basis points spread, but we’re still seeing a little bit of a disconnect between buyers and sellers.”
Seizing The Opportunity
For investors looking to capitalize on these opportunities, Tseko’s advice is clear: “If you know how to find the deal, fund the deal, get control of the deal and close it,” there are substantial gains to be made.
Cardone Capital, founded by Grant Cardone, has raised over $1.2 billion across 23 funds from over 14,000 accredited and non-accredited investors. The company’s real estate portfolio consists of 12,500 apartment units across 38 multifamily properties and over 500,000 square feet of commercial office space.
Tseko shared that last year, Cardone Capital distributed almost $60 million to its investors, with $6 million sent out just last month. The funds are available for both accredited and non-accredited investors, making institutional-grade real estate deals accessible to a wider range of investors.
The Bottom Line
With debt maturity creating a favorable market for real estate investors, Ryan Tseko‘s insights shed light on the potential for lucrative deals in the next 12 to 18 months. For those ready to navigate this landscape, the future of real estate investment looks promising.
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OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
