Investor loses 3,200 apartment units in foreclosure.
Applesway Investment Group borrowed $230 million to purchase four Houston apartment complexes composed of 3,200 apartments around the second half of 2021 before the Fed rate hikes began. Now, Arbor Realty Trust, which is a publicly traded mortgage company, has foreclosed on the properties because Applesway defaulted on the loan.
Commercial property is taking a tumbling. The financial crisis has spread from urban offices and shopping malls to multifamily housing at this point. I’m wondering if this will cause contagion and perhaps impact single family homes? Multifamily apartment buildings have been considered a safe investment for decades. When home prices exploded, it forced a lot of potential home buyers to keep renting. Some landlords made the wrong call when they assumed rents would continue rising at breakneck speed. What is even worse for some of these investors is they made the mistake of using floating-rate mortgages. Those loans have now reset at higher rates. Appleway’s interest rate went from 3.4% to 8%, so they would have been paying more than double in financing costs.
Works Cited:
https://www.wsj.com/articles/houston-apartment-owner-loses-3-200-units-to-foreclosure-as-multifamily-feels-the-heat-fb3d0e75?mod=hp_lead_pos10
-
0:57
The Last Capitalist in Chicago
1 year agoInvestor loses 3,200 apartment units in foreclosure #shorts
2 -
10:31
Dividend Dudes
1 year ago $0.01 earnedWhere is the Housing Market Crash???
18 -
0:56
The Talking Hedge
11 months agoThe Housing Market is in Trouble
5 -
10:14
Jared Jones - The Florida Local
1 year agoTAXPAYERS TO BAIL OUT NEXT FORECLOSURE WAVE!
11 -
12:49
Griffin Milks
1 year agoMy Tenant Just Trashed My Property... | Real Estate Investing
8 -
5:37
Investor Financing Podcast
1 year agoLending Update For Real Estate Investors
1 -
15:37
Market Mania
11 months agoAirbnb Implosion Could Cause FORECLOSURE CRISIS
420 -
17:42
HousingBubble2withRandyPatrick
1 year agoHomeowners Now Facing Foreclosure From Zombie Mortgage Debt - Housing Crash - Housing Bubble 2.0
51 -
2:32
Investor Financing Podcast
1 year agoHELOCs for Investment Properties in California [or Second Mortgage for multifamily]
10 -
8:12
AlliandRico
1 year agoU.S Homeowners Lost 108.4 Billion In Home Equity This Year
4