With the inflation rate hitting a 40-year high, many investors are looking for ways to protect their capital against runaway inflation. Multifamily real estate offers a powerful inflation hedge for those who are able to choose the right deals in the right markets.
Leo Backer, Managing Partner at Pinnacle Partners joins the show to discuss the multifamily strategy in their Opportunity Zones funds, and how multifamily is a strong asset class even amid economic uncertainty.
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- The case for multifamily real estate investment as an effective inflation hedge.
- What some of the inflation-related challenges presented to Pinnacle OZ assets are, and how they have been navigated.
- Why multifamily is such a popular asset class for Qualified Opportunity Funds.
- Pinnacles has a multi-asset OZ-fund with “curated” products. What Pinnacle means by “curated” products in their multi-asset OZ fund.
- An overview of effective deal sourcing strategy.
- How the benefits of an early exit can outweigh the value of fully realizing the OZ tax advantages at the end of the required hold period.
- How rising interest rates are impacting deal flow and approaches to leverage on multifamily assets.
- What OZ locations Pinnacle prefers for their assets, and how they approach site selection.
- Leo’s best piece of advice ever received for success in real estate.
Featured On This Episode
- US Inflation Quickens to 40-Year High, Pressuring Fed and Biden (Bloomberg)
- Fed Raises Rates by 0.75 Percentage Point, Largest Increase Since 1994 (Wall Street Journal)
Today’s Guest: Leo Backer
About The Multifamily Investor Podcast
The Multifamily Investor Podcast covers trends and opportunities in the multifamily real estate universe. Host Scott Hawksworth discusses passive investment offerings in the space, including direct investments, DSTs, opportunity zones, REITs, and more.