fbpx
  • Home
  • |
  • Podcast
  • |
  • Advantages Of Trading Up To New Attractive A Class Properties
Advantages Of Trading Up To New Attractive A Class Properties

November 12, 2021

Advantages Of Trading Up To New Attractive A Class Properties

Have you considered trading up to A properties from B/C value add deals?

Trading Up To A Class From B/C Properties

Photographer: Nicholas Vassios | Source: UnsplashPhotographer: Danielle MacInnes | Source: Unsplash

I’ve interviewed many multifamily syndicators on the podcast and I’ve seen and heard a trend from these syndicators that many are shifting from B/C value add deals to existing A properties and/or new development.

What are some of the reasons I’m hearing for the shift?

  • prices for B/C multifamily properties have increased dramatically and the gap between B/C and A properties has narrowed
  • during Covid, tenants especially in C properties were more impacted and had a harder time paying rent. Many tenants in A properties were able to work from home where many tenants in C properties either lost their job or had hours cut back.
  • Rent as a percent of income is 1/3 for tenants in C class properties and is 1/6 for tenants in A properties so there is more cushion in case of a slow down. Tenants in A properties also typically have more savings in case of a slow down in the economy.
  • As the property is newer there is less deferred maintenance

Below are some podcast episodes that talk about this subject if interested in hearing more;

Why do I share this story with you?

I share this because I want each of you to learn from other successful investors in the industry. Many of these syndicators have shifted their focus from B/C properties to existing A properties and/or new development. I continue to invest in all three asset classes ( A/B/C) depending on the sponsor and the deal. I bring this to your attention as food for thought for each of you.

Don’t Miss Out – Subscribe and provide 5 Star Review On Apple Podcasts

Don’t miss out on an episode to learn from other seasoned investors. If you have yet to subscribe and provide us with a five star review on Apple Podcasts, it’s FREE and will take 30 seconds. Click the link below, hit the SUBSCRIBE button then scroll down and select 5 stars (the fifth star furthest to the right). That’s it!

Darin Batchelder's Real Estate Investing Show

If you’ve already subscribed and provided us with a five star review, then thank you and please share the show with a friend!

Related Posts

How Doubt Kills Mores Dreams Than Failure Ever Will

How Doubt Kills Mores Dreams Than Failure Ever Will

How Curiosity, Tenacity & Persistence Lead To Real Estate Investing Success

How Curiosity, Tenacity & Persistence Lead To Real Estate Investing Success

How To Champion A Fantastic And Unique Tenant Experience

How To Champion A Fantastic And Unique Tenant Experience

Top 5 Powerful Podcast Lessons Learned To Help Achieve Remarkable Success

Top 5 Powerful Podcast Lessons Learned To Help Achieve Remarkable Success

Darin Batchelder


Wealth creation through real estate provided me with a new passion to get the word out and let others know that they have an alternative to investing in the stock market. If I can inspire and educate just one person to take action that results in life changing wealth creation then the work to launch and grow this podcast is well worth the effort.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
>

My 5 Step Process for Passively Investing In Real Estate

5 Step Process For Passively Investing In Real Estate

Sign up for the podcast and receive this free gift:

Tweet
Share
Share
Pin