Is Now a Bad time to get into Multifamily Acquisitions?
I currently work for a family office developer that focuses on small rehabs (~50-75 unit residential, retail, mixed-use, condo, etc.). I'm on the acquisitions side working with brokers to source these opportunities, underwrite them, work with mortgage brokers for debt, etc, then toss them over to our project/asset managers.
I was recently offered a position to lead institutional multifamily acquisitions for a mid-size fund, covering Georgia and the Carolinas, pretty much just value-add/core-plus stuff, 250+ units. The cash comp alone is more than double what I am making at the family office, plus there is carry, it's an extremely compelling offer.
My concern is that these funds are sprouting up all over the place, and value-add multifamily acquisitions is damn near impossible right now. I have a few colleagues on the buyside and brokerage side who have all told me stories of 30+ offers, sub 3% cap rates, millions of dollars of hard money at PSA signing. I feel like i'd be setting myself up for failure. Am I overthinking this? I would appreciate any insight, thanks!