272: Too Much Leverage Will Bury A Lot Of Multifamily Operators

Leverage has helped a lot of multifamily operators generate great returns over the past five years, but many newer operators are now paying the price for too much leverage and higher interest rates. When underwriting deals, it’s critical do be overly conservative to account for realistic rent growth and growing expenses. Jordan Fisher, Principal of Next Wave Investors, incorporates ruthless conservatism into his underwriting in order to do well by his investors and never lose a penny of their money.