Matt Seguin of Cotality urges lenders to flag multifamily and occupancy fraud, noting a sharp spike in risk for two to four unit properties. He backs stronger oversight and AI tools to spot red flags earlier.https://t.co/p0GLsKKbIN
— Mortgage Professional America Magazine (@MPAMagazineUS) July 8, 2025
He said that, for the most part, many investors are still sitting back and waiting for the right time to jump into a new project. Although he said some areas always have those who buck the trend.
“I remember Texas from a few years ago,” Martinek said. “The vacancy rate would be high, and some guy would put up a skyscraper right there. Texas is kind of its own animal.”
Working through the headwinds
With elevated interest rates and market uncertainty, Martinek believes investors will likely continue to exercise patience. Those who are ready to act are competing with other eager investors to find those good opportunities.
“There’s still going to be areas of pain,” he said. “But, the good quality properties, good tenants, everyone’s kind of chasing those same things. There’s demand out there. I think they’re waiting to see, and I think when the tariffs end, and interest rates come down a little bit, people will start dipping their feet in the water a little bit more.
“I think it’s kind of business as usual, kind of how it’s been plodding along. I think that’s the next six months, I see the same thing. I think the worst is behind us, but I think that it’s going to be slow. It’s not going to be a V-shaped recovery.”