WHERE REAL ESTATE VALUES HAVE CRASHED 50%-60% ALREADY

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**Michael Zuber** (0:56)
Alrighty, folks, you know, over the last four months or so, Olivia and I have raised over seven figures because we are getting ready to go shopping in the multifamily space. I know I've been talking about this for a couple of years. The pain took longer to manifest than I expected, but there is no question. The distressed real estate opportunities are here. And you know what? I've been introduced to someone that does this for a living. He built a 6,000-unit portfolio back in the last cycle, currently sitting on about 500 units, ready to take advantage of what is coming. Let's welcome Trey Stone to the show. How are you doing, Trey?

**Trey Stone** (1:34)
Doing great, Michael. Thanks for having me on.

**Michael Zuber** (1:36)
Oh, absolutely. So let's start with the fire. What the opportunities are starting to come up in the multifamily space. Talk about what we are finally seeing, and then we'll get back into your origin story.
The audience is thirsty. They want to know about the opportunities you're seeing today.

**Trey Stone** (1:53)
Yeah, it's really exciting. So I came back about a year ago, and I've bought three new deals during that time.
So I'm back up over a thousand doors and just negotiated another deal. So I'll be back up to five deals and be closer to 1,250 doors if this deal goes through.
We just got a price accommodation from the seller. Those deals have ranged from $47,000 a unit to $77,000 a unit. And what's exciting is that the comps on those same deals range all the way from $96,000 a door to $147,000 a door. If you look at where those prices were in the previous peak for the comps that have sold. There's not a lot of comps now because nothing's been trading. So to put it, I guess, in a more of a big picture term, we're able to buy these deals now for roughly 60% off of what they were selling for. Not because I think that they were actually worth what they were selling for, but in my experience, I bought my first rental property in 1997, so next will be 30 years of owning these properties. I've been through several cycles now in the past 30 years, and typically, when you start to see discounts of 20 or 30% from the previous peak, you can buy into that dip. And then as the market rebounds, you usually hit a new peak that's even higher than the one before. Every time I think that couldn't happen, it does happen, and so...

**Michael Zuber** (3:20)
Inflation's a feature, not a bug.

**Trey Stone** (3:24)
But the key, I think, is just having the discipline, right? Not to buy when you're not in that part of the cycle. For the past 10 years, I didn't buy a deal.
And a lot of people have a difficult time, you know, kind of holding fast to that discipline during those seller markets. And I think also people have a hard time selling because they feel like, well, it's going to go even higher, as opposed to saying, well, did I have a predetermined strategy for exiting the deal when I bought it? And if I can realize that strategy or better, you know, can I hold to it and go ahead and dispose of that asset and take advantage of that arbitrage in the cycle, as opposed to falling victim to the herd mentality and the greed of holding onto that property and trying to time it perfectly as if you have a crystal ball, which a lot of people right now realize they don't, that thought that they did, you know, five years ago.

**Michael Zuber** (4:17)