583: Tax Abatement Strategies Produce More Profitable Investments In Multifamily

Prices on most value-add workforce class B and C multifamily properties are too high to execute successful business plans. Construction costs have escalated and obtaining higher rents is not a certainty as renters are being squeezed by inflation. Rob Beardsley, Founder and Principal of Lone Star Capital, started with workforce value-add multifamily, but has pivoted to affordable housing with mostly later vintage properties. Rob partners with non-profit entities, including municipalities, to receive tax abatements in exchange for protected rents for tenants. As a result, he’s able to generate aggressive investor returns while providing much-needed affordable housing.