Why multifamily is more COVID-resistant than other commercial real estate asset classes?

I can't wait to share with you about this but you might already know - Apartment building / multifamily is more COVID-resistant compared to other commercial real estate asset classes. What information do I get from the chart? This chart describes the lending sources by different commercial real estate asset classes. Each row represents a different lender type, while different colors represent different asset classes. What stands out is that 93% of the apartment buildings/multifamily are financed by Freddie Mac and Fannie Mae.


What that means is that the government has full control of multifamily, it can do whatever it takes (for instance, providing loan forbearance to the borrowers) to prevent this asset class from total collapse.


Invest with Confidence.


Yan



Here are some free educational resources:

Video of our Coast-2-Coast educational series on asset allocation during the COVID era: https://www.youtube.com/watch?v=8U0lxAPaf_0&feature=youtu.be

We hold FREE educational talks every 3-4 weeks: please join us on https://www.facebook.com/groups/coast2coastrealestate and watch the announcements.


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