572: Municipal Subsidies Make Multifamily Construction A Great Investment Opportunity

So many people are chasing value-add multifamily deals, that the deals rarely pencil. On the construction side, it’s also become difficult to achieve profitability because of prohibitive costs including higher interest rates. At the same time, the need for housing continues to outpace supply in many markets. One way to be successful in this environment is to partner with municipalities in Tax Increment Financing deals. With Tax Increment Financing, municipalities subsidize construction costs for the developer, thereby lowering the barrier to entry. Justin Goodin, CEO of Goodin Development, is partnering with municipalities in Indiana to build luxury, Class A apartments.