The COVID-19 pandemic is one unlike we have ever faced, and with it has come a host of foreseen and unforeseen consequences. Syndicators, much like everyone across the globe, find themselves in uncharted territory and have to make plans to weather the storm. Today, Sam Rust and Whitney sit down to talk about what they’re doing to mitigate risk and how they’re gearing up for the upcoming changes. Sam is Whitney’s partner at Life Bridge and has been keeping abreast of the constant shifts. This show was recorded on March 24th so bear in mind that there may be a host of new information out there by now!
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In this episode, Sam shares some of the measures they have put in place, from getting tenants to pay their rent online to closing down the common areas along with other proactive steps. He also talks about how they’ve halted capital projects and re-evaluated cashflow. Sam then covers the issue of debt, which has been a major concern for all operators. He sheds light on the Fannie Mae and Freddie Mac three-month forbearance period, and the conditions and implications of it. While it won’t affect your agency record if you, as an operator, utilize it, it is important to go over the conditions with your lawyer first. There are many wide-ranging impacts that property owners will have to bear in the time to come, so it’s best to be proactive to be able to handle the road ahead. Be sure to tune in today.
Key Points From This Episode:
- How the COVID-19 crisis is affecting the economy differently than the 2008 crash.
- The effects for property owners are still unfolding and how Sam and Whitney are preparing.
- Find out what’s changed on Whitney and Sam’s properties and what’s still working for them.
- Multifamily is a well-positioned real estate niche to absorb external shocks.
- Why decreased capital expenditure is a possible silver lining to come out of the crisis.
- Learn about some of the developments that have happened with the lenders.
[bctt tweet=”We have a responsibility as property owners to come alongside our tenants, to help them as best we can and to sacrifice even on our end if that’s what’s required to help the economy as a whole. — Sam Rust” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Sam Rust
Sam Rust grew up in Idaho on a farm as the oldest of 8, where learned the value of hard work stacking over 200 tons of hay per summer. He also learned the value of education, graduating college at 17. He started investing in real estate in 2017, quickly moved to syndication, and is now a managing partner for 65 units. In 2012, Sam married his wife Bekah, and together, they have four daughters.
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