What does it take to survive and succeed in multifamily real estate during one of the toughest markets in recent years?
In this episode, I sit down with Bruce Fraser, Managing Partner at Elkhorn Capital Partners and former hedge fund manager, to talk about the realities of multifamily investing in today’s environment. Bruce shares how his background in macroeconomics and managing public market investments shaped his approach to real estate, why he sold all of his partnership’s real estate holdings before the 2008 housing crash, and how that experience influences the way he invests today.
We talk about why Elkhorn focuses on distressed acquisitions, the risks of floating rate debt, and why Bruce believes many investors underestimated the dangers of the last market cycle. We also break down why Oklahoma became a major focus market for Elkhorn, how they approach buying broken properties, and why bringing property management in-house became one of the most important decisions for their business.
We also get into interest rates, inflation, market cycles, forced appreciation, and what investors should actually be paying attention to in today’s market. If you want a more data-driven and macro-focused perspective on multifamily investing, this episode is packed with insight from someone who has successfully navigated multiple market cycles.
Timestamp
00:00 Meet Bruce Fraser and Elkhorn Capital Partners
01:27 From hedge fund manager to multifamily investing
04:34 Why Bruce chose Oklahoma over Dallas
07:35 Distressed multifamily acquisitions explained
08:52 Why floating-rate debt hurt so many operators
10:51 Buying distressed assets and forcing appreciation
12:24 Why Elkhorn brought property management in-house
17:53 Real estate versus the stock market as a long-term investment
23:01 How in-house management drives expense reduction and forced appreciation
25:03 What Bruce is seeing in the multifamily market today and why he is buying
29:57 Where interest rates are headed and what it means for real estate investors
33:56 Advice for anyone just getting started in real estate investing
What We Cover
- Why Bruce sold all his real estate before the 2008 crash, and how he decided when to get back in
- How Elkhorn evaluates distressed assets and why Bruce sees them as lower risk than traditional value add
- Why Oklahoma outperforms DFW on several key metrics most investors overlook
- What bringing property management in-house actually did for revenue and occupancy
- How to think about allocating between the stock market and real estate
- What the current market looks like for buyers and where the real opportunities are
- How Bruce thinks about interest rate risk and why he only uses fixed-rate debt
Key Takeaways
- Market cycles create opportunities for disciplined investors
- Fixed-rate debt can protect operators during volatile periods
- Population growth and affordability matter more than hype
- Distressed assets can create significant upside when managed correctly
- Property management can directly impact investment performance
- Long-term investors should focus on data, not market emotions
Guest Resources
- Check out Bruce’s website: https://elkhornpartners.com/
- Connect with Bruce on LinkedIn: https://www.linkedin.com/in/bruce-fraser-304120/
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🌍 Website: https://www.apogeemfc.com/
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