Why This Investor Sold Almost His Entire Multifamily Portfolio Before Rates Spiked

Real estate timing is easy to get wrong. John Cohen got it right, and it changed the direction of his business.

John Cohen, co-founder of Toro Real Estate Partners, started with a $368 tax deed auction purchase and eventually built hundreds of millions in multifamily transactions. But the biggest move of his career wasn’t a purchase. It was a sale.

The Exit That Beat the Market

Between 2020 and 2023, John sold almost his entire multifamily portfolio.

The reason wasn’t a prediction about interest rates. Buyers were simply offering more than he believed the properties were worth. He points to a rule he credits to Sam Zell: if you get an offer and don’t sell, you’re basically choosing to buy the property at that price yourself.

That decision got him out right before rates climbed, and before many operators faced foreclosures and capital calls.

Is Multifamily Still Worth It?

Not dead, but not for everyone right now.

John still sees opportunity for investors with long-term capital and a seven to ten year outlook who can lock in conservative debt. For anyone looking to buy, stabilize, and sell within a few years, he thinks the math no longer works.

The New Strategy: Land and Manufactured Homes

With multifamily on pause, John shifted into buying land and placing brand new manufactured homes on it for first-time buyers.

These aren’t mobile home parks. Each lot sells individually, closer to a traditional single-family purchase, and most homes qualify for FHA and USDA financing. The turnaround from purchase to sale is typically 90 to 180 days.

No Debt, By Design

Nearly every land deal since 2020 has been done in cash.

Without a lender that can force a sale, John and his investors can simply hold a property longer if a deal takes more time than planned. He estimates unlevered returns in the 20 to 30 percent range.

The Biggest Lesson

Timing the market perfectly isn’t the goal. As John puts it, it’s about time in the market, not timing the market.

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