Jeremy Roll, President, Roll Investment Group

The value-add multifamily disaster

Jeremy Roll, Roll Investment Group

Today’s guest, Jeremy Roll, president of the Roll Investment Group,  is a seasoned multi-cycle real estate and alternative asset investor who is a voracious reader and analyst of market conditions, what's going on in the market, what's going on in the broader macroeconomic world, and in the industries that he invests in.

I've known Jeremy for a long time, and what you're going to hear from him today are some insights into just how conservative he is in his investment approach, what he has been doing for the last few years and what he has not been doing, where he sees the market going and where he sees opportunities emerging over the next few years.

Jeremy talks about how the market transitioned around 2016, prompting investors to adopt value-add strategies due to soaring property values. He shares why he chose to step back from value-add deals, preferring stabilized, more conservative investments.

You’ll hear why prudent investors exercise caution particularly towards the tail end of economic cycles and why Jeremy believes this is the most perilous time to engage in higher risk/return strategies like value-add – and why he thinks it’s like an aircraft running short on take-off runway, highlighting the risks when market prices are at their peak, and an economic downturn is on the horizon.

Jeremy discusses the challenges he faced finding opportunities during 2021 and 2022, a period dominated by floating-rate, value-add apartment deals and why his unwavering preference for ten-year fixed-rate debt meant walking away from deals others were piling into as they chased high, short-term returns.

You are going to hear insights about the current state of the market, the importance of positive leverage, and why now is the time to wait for sellers to adjust their price expectations.

If you are like Jeremy and me who prioritize protecting invested capital over chasing high risk, higher returns, you’ll find the conversation today makes a lot of sense. And if you are now facing capital calls on deals you’ve invested in, Jeremy’s insights, though too late for this cycle, will help you prepare to make money in the next cycle – and to be better prepared for its ultimate, inevitable downturn.

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