Episode 61: Multifamily Market Trends 2024 with Michael Episcope

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Michael Episcope co-founded Origin Investments in 2007. Michael is co-CEO, co-chairs the investment committee and oversees investor relations and capital raising. Prior to Origin, Michael had a prolific trading career and twice was named one of the top 100 traders in the world by Trader Monthly Magazine.

Michael earned his undergraduate and master’s degrees from DePaul University. He has more than 30 years of investment and risk management experience.

Connect with Michael Episcope

https://origininvestments.com/

https://www.linkedin.com/in/michaelepiscope/

In this episode of Tech Equity and Money Talk, host Christopher Nelson is joined by Michael Episcope, the co-founder and co-CEO of Origin Investments.

This episode provided a deep dive into the multifamily real estate market, offering valuable insights for both seasoned and novice investors.

Michael's experience and strategic approach to real estate investment highlight the importance of risk management, due diligence, and the ability to adapt to changing market conditions.

Tune in to learn about the criteria that led Michael to choose real estate, particularly multifamily, as a vehicle for growing and safeguarding wealth!

In this episode, we talk about:

Transition to Real Estate:
Michael and his partner David transitioned from trading to real estate to protect and grow their wealth.
They were motivated by the stability and simplicity of real estate, influenced by Michael's early exposure through his grandfather.
Investment Strategy:
Origin Investments focuses on multifamily real estate, particularly in high-growth markets.
They employ a barbell strategy, balancing preferred equity and ground-up development to manage risk and protect capital.
Market Insights:
Michael shared insights on the current state of the multifamily market, noting oversupply in Sunbelt markets like Austin.
He emphasized the importance of buying below replacement costs and the potential opportunities in distressed assets.
Risk Management:
A significant part of their strategy involves understanding and mitigating risks, especially in volatile markets.
Michael highlighted the importance of having a strong balance sheet and being cautious with leverage.
Advice for Investors:
Michael advised investors to look beyond headlines and perform their own due diligence.
He stressed the importance of trusting and verifying information from sponsors and being cautious of diversification across too many managers.
Current Opportunities:
The current market presents opportunities for contrarian investors who can see beyond short-term distress.
Michael discussed the importance of understanding the motivations behind investment managers' decisions and being wary of strategy drift.

Episode Timeline:

[00:01:37] Choosing real estate for wealth.
[00:03:52] Real estate wealth and risk.
[00:08:10] Distressed capital structures.
[00:10:57] Multifamily market oversupply and demand.
[00:13:25] Investing in lifestyle cities.
[00:17:06] Real estate investment during recession.
[00:20:44] Looking beyond the headlines.
[00:24:39] Throwing money into a hole.
[00:27:23] Due diligence and verification.
[00:29:38] Diversification in Real Estate Investing.
[00:33:06] Strategy drift in investments.
[00:36:15] Managing diverse product mix.

061: Multifamily Market Trends 2024 with Michael Episcope

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