The world of real estate investment is overrun by uncertainty after some of the most dramatic series of global economic changes we've seen in many years.  Many fear that economic uncertainty is likely to persist again this year. Should investors stay on the sidelines or jump in now?  What do you think will happen this year? If only we could know the future, we'd all be rich. Or could it be that knowing the future is not as important as knowing the fundamentals that drive success?  

I find it fascinating to read prognostications of what might happen to the economy in 2024.  I just wish I had that proverbial crystal ball to know which predictions of the future are true life and which are pure fiction. 

I must confess that after a few decades of failed experience at perfectly predicting the economic future, my crystal ball is indeed quite defective…and now more than ever, so is the crystal ball of most every predictor of the future. It is only when we make that honest admission that we then are more apt to focus on making decisions based on the fundamentals that form success rather than the false impression that our predictions of the future may be right this time.  

Consistently positive investment outcomes in any asset are primarily driven by understanding and diligently pursuing the fundamentals that create success in that asset class. When it comes to success in the arena of real estate investing, our decades of experience have created some strong convictions about those fundamental elements of success. 

Certainly, there are many elements. Everything from careful diligence in smart asset selection and efficient capital stack structure to rigorous management of the asset to minimize risk and optimize value. But, the most foundational piece of any investment is the consistent stability of growth over time driven by strong supply/demand dynamics. Based on our experience and research, we've seen that multifamily real estate benchmarks extraordinarily well in the supply & demand dynamic. Even through the volatility of the last few years, the fundamentals of stable long-term growth produced by strong supply/demand drivers continue to predict a strong outlook for the future of multifamily investments.  That's why for some years now, virtually all our new real estate investments have been in this one asset class and that's what we continue to focus on solely in 2024. 

I'd love to hear what your investment thesis and focus is this year. I'm sure I could learn something from you too!