Why the Multifamily Flip Is Over and the Long Game Wins with Greg Bronson

While other multifamily deals went sideways on floating rate debt, Greg Bronson's team stuck with fixed rate financing. Here's what they're buying now.

 

Greg Bronson of Ashland Capital invests in value add multifamily, built to rent and student housing across the Midwest and South. His team saw that "eventually the music was going to stop" on zero interest rates, and they stayed away from high leverage and floating rate loans.

 

Greg breaks down a 108 unit built to rent community in suburban Chicago. The last owner was just managing for occupancy to sell. Expenses ran heavy and rents felt low. Now Ashland is getting $100 to $200 rent increases, even on units they did not renovate.

 

He also shares why the quick apartment flip "has sailed," how a cash out refi in Dayton, Ohio gave investors mailbox money, and why raising capital from burned investors takes more time.

 

Key topics:

• Why so many value add deals went sideways
• Why built to rent is a sweet spot right now
• Finding hidden value in a fully leased property
• Refinance and hold versus sell
• Real estate equity and real estate debt in one portfolio
• Raising capital after investors got burned

 

About the guest:

Greg Bronson is Senior Director of Acquisitions and Investments at Ashland Capital. He has over two decades in real estate and started in real estate debt investing from 2007 to 2012, right through the financial crisis. Ashland also runs a credit fund that provides small balance preferred equity to other sponsors.

Links:

Connect with Greg: https://www.ashlandcapitalfund.com/

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