The First Domino? Investors Pull Billions as Real Estate Bank Runs Return
On The Market
Private Credit 'Bank Runs' and Redemption Risks
Kathy and Dave outline record redemptions at funds like Blackstone and implications for private credit liquidity.
Investors are pulling billions of dollars (yes, billions) out of real estate investments at a record pace as “bank run” style withdrawals return. Blackstone has already seen record withdrawal requests of over $3 billion. Could this be the first domino to fall that could set off a private credit crisis, pulling multifamily prices down even more?
We’re back with this week’s biggest headlines—from mortgage rates rising back to six-month highs to corporate headquarters being converted into housing—there’s almost too much to talk about happening in the housing market. First, mortgage interest rates flip as buyers get pushed back out of the market, but this could lead to even bigger discounts for investors.
A lonely corporate headquarters building gets greenlit for conversion to housing. If this trend continues, we could see relief in housing supply strain. Investors pull a record amount of money from real estate investments—just as commercial real estate needs it most (this will have consequences). Finally, the “millionaire tax” makes its way through one state—and it could kill one type of real estate investing.
In This Episode We Cover
Investors go on a bank run—why they’re pulling billions of dollars from investments
Mortgage rates boomerang back to around 6.5%, but investor deals could get even better
The newest housing inventory opportunity and how to make a CEO’s office your new living room
The millionaire tax is kicking profitable investors out of this popular market
And So Much More!
Links from the Show
Join the Future of Real Estate Investing with Fundrise
Join us at the BiggerPockets Conference October 2-4 in Orlando. Buy tickets
Sign Up for the On the Market Newsletter
Find Investor-Friendly Lenders
Ken McElroy: The Liquidity Problem No One Is Talking About
Homes.com: As Washington 'millionaires tax' heads to governor, some agents see homeowners list
Grab Dave’s Book, "Real Estate by the Numbers"
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-410.
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