With the Federal Reserve looking like they are done raising rates, the market has responded, bringing rates down in anticipation of the Fed bringing down rates next year. The current higher rates have meant higher payments, which has compressed yields, affecting pricing relatively quickly.

This will be a general update on how the apartment markets are doing in Oklahoma City and Kansas City. We currently own buildings in both OKC and KC. Therefore, we have first-hand knowledge of how they are performing.

“The Psychology of Money” by Morgan Housel has some of the most eye-opening perspectives on personal finance, wealth, risk, and success.

With 270 billion in commercial real estate loans set to expire this year, there are many questions about what’s next for commercial real estate. Especially with the recent failures of SVB, First Republic, and Signature Bank, the question remains what is next for the commercial real estate market (Apartments would be included in that).

We have been looking at deals in the Tulsa market for some time but have yet to buy anything. With its proximity to Oklahoma City, it's inevitable that we eventually will, especially as our manager is headquartered in Tulsa and would be a great partner for anything we find out there.

From the moment you step into Kansas City, you can feel the city's vibrancy. We purchased our first complex in Kansas City in 2019, beginning our journey to grow the portfolio in the Midwest. That first purchase has performed extraordinarily well, giving us much confidence in the market.

What is Bonus Depreciation?

The IRS instituted Bonus Depreciation in September of 2017, allowing you to depreciate 20-40% of the depreciable value in the 1st year.

We go through this process on every building we purchase. This is where we found the true power of bonus appreciation. This section will outline this process and how it can significantly lower your tax liability.

Here are our top 10 tweets for 2022 with some commentary. These tweets got the most traction and seemed to resonate with whoever saw them. You can also click on the date to look at the actual tweet to see any comments made. Jonathan tweets almost daily, and you should give him a follow @JB2investments.

We will use this update to review how our portfolio is faring through the current market conditions. Additionally, what we are looking at when it comes to new acquisitions.

This will be a debrief of our improvements at the property that created a very successful sale. First, we will go into some detail on how the deal came together. Before this, we had only done a larger multi-deal in Kansas City. Then we opened the scope of cities to look in. We ended up connecting with our manager, who ended up bringing the deal to us. He vouched for us with the broker, pushing the deal to happen.

We continue to have volatility in the market, and interest rates have now hit new highs we haven't seen in almost two decades. We keep our pulse on things in real-time, reading daily and interacting with different players in the market. This article will share how we are adjusting our strategy to help us stay two feet ahead.

There has been a lot of talk of the Recession and volatility in the market. We wanted to take a second to talk about what this all means to us and what we see moving forward.

When looking at new deals or analyzing where we are with current asset rents, we compare how our properties are doing against the market. We find it more art than science when setting the appropriate rates. We try to strike the right balance high enough to meet or exceed our projections and not have a mass exodus of tenants.

We have continued to experience healthy rent growth across our portfolio over the last year. Which is in line with the market average.

In the real estate private equity business, we are in, you either have small shops or bigger shops. So, this means either a 2-3 partner team with no employees or 2-3 partners with 20 plus employees. If you do your own property management too, it can mean hundreds of employees.  Each of these approaches is very different, and there isn’t necessarily a right way.

With rates now hitting 4% + for most loans before the Federal Reserve System (the FED) makes any moves, there is a lot of talk on how that may affect the market. Higher rates mean higher payments, and this will compress yields.

We are happy to report that we had an incredible 2021, and we would like to take a second to dissect why that was. Also, we want to consider what we see for 2022 and the impacts on our business moving forward.