July 23, 2025 • 23 mins
Ready for an insider look at what's really happening in the Northwest Arkansas real estate market? Our latest episode delivers a comprehensive analysis that goes well beyond the typical market update.
Despite what national headlines might suggest, Northwest Arkansas continues its upward trajectory with prices climbing 6-7% year-over-year in both Benton and Washington counties. But that doesn't mean the landscape hasn't changed. Days on market have increased significantly, with properties now taking an average of 91-99 days to sell. This shifting dynamic creates both challenges and opportunities for different players in the market.
We dive deep into the fascinating transformation happening as NWA evolves from a cash flow market to an appreciation-focused market. Outside investors are flooding in with different risk tolerances and expectations, often willing to accept break-even properties with the confidence that long-term appreciation will deliver substantial returns. Meanwhile, local investors must adapt their strategies to remain competitive in this changing environment.
Our city-by-city breakdown reveals the unique opportunities in each submarket. Discover why Springdale has become the new darling of developers who previously focused exclusively on Bentonville. Learn about the infrastructure challenges in Centerton that could redirect growth to surrounding areas. Find out why Bella Vista investors need to act quickly to secure the remaining short-term rental permits before they're gone.
For commercial and multifamily investors, we examine how capital requirements have shifted, with lenders now typically requiring 35% equity contributions versus the previous 20% standard. Despite these higher barriers to entry, experienced developers continue finding and executing viable projects throughout the region.
Whether you're a seasoned investor or just beginning to explore Northwest Arkansas real estate, this episode provides the market intelligence you need to make informed decisions in today's environment. Subscribe now to stay ahead of market trends and position yourself for success in one of America's fastest-growing regions.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:07):
Welcome to Northwest Arkansas Investing Podcast, your
go-to source for real estateinvesting in Northwest Arkansas.
Speaker 2 (00:13):
With your seasoned investor just starting out.
We bring you expert insights,market trends and practical
strategies to help you buildwealth through real estate.
Speaker 3 (00:20):
From buying and selling to property management
and long-term investmentplanning.
We cover it all so you can makesmart, informed decision in
this fast-growing market.
Let's dive in.
Welcome back to NorthwestArkansas Investing Podcast.
I got two co-hosts here, mrBrian Wagers and Mr Zach Stanley
Happy to have both these guyshere and we just went through a
couple episodes that I hope youguys listened to the past couple
(00:43):
of weeks A little bit of deepdive on deals and then, uh,
talking through pros and cons ofshort-term rentals and
long-term rentals.
But this episode we want to kindof get into.
We've done previously the rvsskyline report but we want to
kind of get into another kind ofquick update, um, prior to the
next skyline update, uh comingout and and just talk about kind
(01:04):
of what we're seeing in thecurrent state of the NWA market.
Zach and I are prettyentrenched in the single family
market and broker a lot of dealsin that space, and so we see a
lot of things there.
Brian's in the multifamilyspace and doing some development
and buying some bigger dealsand kind of keeping a pulse on
what things are happening kindof in each city as well there,
(01:26):
and so we want to talk throughthose.
But I guess, zach, give me justkind of a quick idea of kind of
a few things that you've beenseeing lately that have stood
out, whether it be you know thepace of houses moving, prices
and where've fluctuated, or evenkind of anything else that
maybe stood out lately.
Speaker 1 (01:46):
Yeah, so Northwest Arkansas market, um, I'd say, is
a different a little bit.
Uh, recently I I'm representingI have 35 listings right now.
Now, like 25 of those are landlistings, but the other 10 are,
uh, single family homes and whatI've been seeing as a whole is
(02:07):
some of these people that boughtin 2020, 2021, when the market
was quick.
The single family housing forthe sellers is slower.
Now it's slower, but we'restill.
The price trend is still up, sowe're just taking longer to
sell and we're having some pricedrops, but the price drops are
still up.
So we're just taking longer tosell and we're having some price
drops, but the price drops arestill hitting way higher.
(02:29):
So it's a lot.
What I'm seeing is a lot slowermoving.
I mean, I just had one on for361 days and we just got our
first offer and it wasacceptable and it's dumb.
Speaker 3 (02:43):
Just speaking on that .
I've got a quick note.
Days on market.
This is april in washingtoncounty.
Speaker 2 (02:49):
In benton county they're up 23 and 18, so just 99
, yeah, 99 average days onmarket for april 2025.
April 24 it was 91, so yoursentiment there of just feeling
it?
Speaker 1 (03:02):
yeah, you can feel it .
I can feel it from the sellers.
They're a little uneasy and I'mjust having to, at the start of
things, go hey, it might taketwo, three, four months to move
this, maybe more, but we justneed to be patient.
It's going to be okay.
If you eat some payments,you're going to get your dollar
amount eventually, right On thebuyer's side.
(03:23):
I don't know like.
I've heard mix from ourindustry.
I've heard people saying theyreally feel it.
I've been.
This is the busiest I've everbeen.
Yeah, a year over year.
Speaker 2 (03:32):
I mean it's yeah, on that same token where you said
be patient, benton county's upaverage price per square foot is
up seven percent from last year.
So days on market increase, butprices are still prices are
going down washington county,interestingly, for april is only
up.
Speaker 1 (03:47):
We're still up, though what 1.41 I mean it might
mean more, more concessions.
Maybe people are given washerdryers and fridges that aren't
accounted in those things to getdeals done.
But, um, as a whole, what Iwhat I was feeling is being
correlated on the on the data aswell.
Man, I've been through a lot ofbuyers in this market right now
, though.
Speaker 3 (04:07):
Yeah.
Just fishing for the right thing100% and I think a little bit
more.
Going back to days on marketgoing up so much and listings
sitting a little bit longer.
This isn't necessarily the casefor Washington County, but for
Benton County there's 32% morelistings than there were last
year in April, which isinteresting.
The more new listings and themore buyers have to shop for,
(04:29):
obviously, the longer that a lotof these homes are going to sit
.
But again, what you see in bothcounties is, you know, benton
County is up median sales priceand price per square foot a
little bit over 6% in BentonCounty and the same thing in
Washington County a little bitover 6%.
So we've just continued to see,um, you know the, the prices in
(04:51):
Northwest Arkansas outpaceinflation and uh, I don't really
see an end to that becausewe're both, you know, unless
there was some big macro uh, wehave no crystal ball unless
there was some big macro eventthat a lot of people were losing
jobs or whatever.
But we're still at what thissays in April four months of
supply in Washington County andin Benton County we're at five
(05:12):
months of supply and I think tobe in a healthy market.
Kyle mentioned this way backwhen, but is that what?
12 months or 18?
Speaker 1 (05:19):
months of supply.
Speaker 3 (05:21):
So we need to double our supply to be in a really
healthy, balanced market, andit's just I mean, it's hard to
see that happening anytime soon.
Speaker 1 (05:29):
Well, there's what I've seen, at least personally,
and you've probably other peoplehave probably seen as well is
there's a bunch of investorscoming in here that don't give a
piss if this thing's cash flowsor not, because they're coming
from a different market.
They see the projections andwhat they're comfortable with is
different from what people inNorthwest Arkansas are
comfortable with, and so they'retaking their comfort level
that's more risk adverse andbringing it to here and going
(05:51):
I'll buy that, that and give mea side of that and waiting out
for 30 years.
Well, I don't care if it.
If I'm negative, negative,negative for the five, you know
my positive is going to outrunmy negative and then they're
taking.
That's a risk I might not, I'mnot even willing to take, but
they're going.
I've seen on my end peoplethey're not caring about the
cash flow.
They just they don't.
(06:11):
Now we're finding things thatcash flow like they're basically
break-even properties, um,which ends up being.
You know, people are superhappy with that because they see
what there is.
I have when.
When someone calls me now I gowhat do you want real estate to
do for me, for, for you?
Um, and that that will tell meif this is the right market for
(06:32):
them or not.
If they call me and they go Iwant to retire in five years
from cash flow, I'll say youneed to go look at Fort Smith or
Little Rock, if you're going tolook at Northwest Arkansas.
But if they're like, hey, I'min it for the long haul, I'll
say you're in the right spot.
Speaker 3 (06:52):
And we'll keep pushing forward from there.
Of what I'm seeing?
Yeah, absolutely.
And when you continue to go upsix to 10% when it comes to
price per foot across the board,it's hard to argue that.
I mean if you can kind of keepit afloat with break even or if
you can make a little bit ofcashflow.
You know, it seems like ourmarket continues to shift
towards a more appreciationmarket, like a Dallas or an
Austin or you know all theseother spots have been for a long
time.
Speaker 2 (07:10):
You get a lot of that out-of-state influence in the
commercial real estate markettoo and multifamily specifically
.
I just hosted a lender panelone of our events recently and
they were talking about oneoutside capital still coming
like increasing outside capitalis coming into the market
Whether that you know that's aguy from California.
He's looking at purely basis Icould buy the same square
(07:33):
footage for this much like okay,I can sit on that and ride that
way better.
But also they were noting thatpeople with experience are still
getting deals done.
These lenders are still lendingloans, still doing a lot of
deals.
They're talking about guys whowere doing deals 20 years ago
and they were borrowing at 16%.
You know they made it work whenthey could borrow at 6%.
(07:55):
They made it work when theycould borrow at 3%.
They made it work at 8%.
Now they're having to put in alot more cash into these
commercial real estate deals.
You know you're having to put65% in for a lot of loans.
You know sometimes you can getcreative financing and up to 80%
depending on what kind of ifyou're doing like a HUD loan or
(08:18):
that's specifically onconstruction multifamily.
But there's other creative ways.
But the new standard is 65% tothem versus 80% used to be the
new standard for, like you wouldexpect to put 20% down.
Now they want to see cash in tosupport that DSCR.
But people who have experienceare doing the deals, so that was
(08:38):
a note.
I took away.
Speaker 3 (08:39):
Yeah, and a lot of, like you said, a lot of outside
capital coming in, and so a lotof these guys are coming in and
seeing opportunities for them tokind of add value to projects
and get out in one to five yearsand really make a nice spread
with how things continue totrend with absorption rates and
(09:00):
you know incoming folks that aremoving to north of Sargansaw.
The projections here arecontinuing to go up and whereas
everywhere else is eitheroverbuilt or, you know, prices
are starting to come down prettyheavily in a lot of places
we're still trending the otherway.
Speaker 2 (09:16):
I'd say cash is king right now, too.
People seem like they haveprojects that they thought they
were going to sell for thisprice, but they're still having
to hold on to it.
It seems like a lot of equityconstraint Now they're having to
put more equity, but if youhave the cash to put in a deal
right now and make a deal work,you'll be very happy.
You did that five to sevenyears from now, so I think it's
just getting your underwritingin check and your assumptions in
(09:39):
check.
Speaker 1 (09:44):
Maybe you can't underwrite for the extreme
growth we've had, but we'restill going to continue digging.
Yeah, absolutely, if we'rediving in more on a city by city
basis.
What I'm seeing is in BellaVista, there's about 100
short-term rental permits leftYou'll hear me talk about that
episode before this and so I'madvising my investors to get
those as quickly as possible,because there's a 600 limit on
(10:04):
that, and I think we're about490 to 500, somewhere in that
range, and so I'm advisingpeople to get that right now,
somewhere in that range.
And so I'm advising people toget that right now.
Um, and so belvis is continuingits upward trend.
Um, centerton is still kind ofchugging along like normal.
Now, a big thing in centertonis, uh, they did a really bad
job managing the wastewater andI don't know if you guys have
(10:24):
heard about that and I was chasecalled you, but um, the
centerton kind of screwed thepooch on wastewater and they're
needing a lot more capacity, andso a lot of projects are just
kind of SOL at this point, andso I'm really interested to see
what.
Basically, what I just said islike center 10 is building too
(10:46):
rapidly for what the wastewatercan handle and high fill, and I
can get into the details maybeat a later date.
But the capacity for sewageisn't there, and so a lot of
builders that built in the citygave the thumbs up on.
They're now like oh sorry, andso they're just having to hold
land and pay interest onlypayments for who knows when.
I know we talked with somebodyand they said it may be like a
(11:11):
two, three year, four year dealto figure out a problem like
that.
That's like a 10 to 20 milliondollar problem to figure out,
and so I'm interested to seewhat that does for the rest of
the area.
I think maybe some of thatbuilding goes to p ridge, maybe
some of it goes like I don'tknow, maybe to the south the
high full and south the highfill and stuff like that, just
(11:31):
because we got to find otherwastewater facility plants that
can take the, the, the growth,um, and so that's that's.
We could probably do a wholepodcast on that.
Along the main corridor I'm notreally finding a lot of investor
friendly deals that make sensein rogers right now, like
downtown rogers or rogers ingeneral, like around pinnacle.
(11:53):
I mean it's too expensive.
My deals I'm finding arefayette, centerton, bella Vista
really as a whole and then maybesome outliers of that.
But like Springdale you canmaybe find some stuff.
Fayetteville, right now theleasing cycle is getting done
with for the, for the students,and so that's kind of my 30,000
(12:14):
foot of the market real quick.
Speaker 3 (12:15):
Yeah, I love that.
Brian, give us a good idea.
I know you got a lot of stuffgoing on and you, uh, you got
something going, a deal going onin high full area.
You've got deals, uh, maybehappening in springdale, though
I know you're bullish onspringdale.
Speaker 2 (12:29):
Talk a little bit about what those areas have been
looking like yeah, so right nowbuilt in the early phases of a
200 unit development in downtownspringdale, right behind l
Luther George Park.
So it's kind of cool going fullcircle, because I haven't done
anything in Springdale for along time.
My first ever deals were therein 2017 and people were like, oh
, you're buying in Springdale.
(12:50):
Like what are you like, are youscared?
Like no, first, I grew up inCincinnati but it's fun, it's
cool to come full circle andlike, just whenever I go over
there go to emma.
It's like popping, like emma'salways during the day around
lunchtime at night.
You know I posted some eventsthere at the apollo.
So, um, I know some developersthat were strictly only looking
(13:14):
at bentonville have now are onlylooking at also springdale core
.
They were only looking atbentonville, so I are only
looking at also Springdale core.
They were only looking atBentonville.
So I talked to, like talk tothese developers throughout the
years and before it was like, oh, we're only looking for
Bentonville core, oh, you know,we're looking for a Springdale
now too.
You know the opportunity zoneand, and Springdale is pretty
phenomenal, it has spurred a lotof one.
It's in the opportunity zone.
(13:34):
You don't have to pay capitalgains but whether you do an
opportunity zone deal or not, uh, the benefit has, uh has
benefited Springdale really wellbecause of, because of the
Waltons and how much they haveinvested in the area.
Um, so, the Luther George park,obviously it has a bunch of you
know we had mayor Sprousetalking about that on a couple
(13:55):
of, you know, several episodesback.
So a lot of cool things goingon in Springdale.
I think that is a great market.
It's a big market too and Ithink you know there's different
sides to Springdale.
There's close to downtown.
You know there's a big dealproject happening on the kind of
the other side of Springdalethat you know huge pickleball,
complex mix.
So Springdale is pretty coolbecause within Springdale you
(14:18):
have different sub marketswithin it?
Speaker 3 (14:20):
Yeah, absolutely.
And now, just from aninfrastructure perspective,
you've got a, you've got 612.
Now that'll run all the wayfrom very east of 412 and then
the very west of 412.
That I think will really helpcongestion, obviously, and help
Springdale continue like peopleto kind of want to come to
Springdale and and drive throughthere and then on top of that,
(14:41):
uh, I think even 112 going northand south sounds like from
Tawny Town to Bentonville.
They're gonna have, they'reexpanding all that.
They're putting in like 50roundabouts or something stupid.
Speaker 2 (14:50):
Um, we're actually having Tyler Overstreet from the
city of Bentonville uh planning, so that'll be fun to ask him
some questions.
So if you guys have anyquestions before that episode
reaches out, shoot us a messageon DM us on Instagram or
LinkedIn and we'll make sure toask your questions to the show
too.
Speaker 3 (15:09):
Yeah, but overall I think we're.
We're obviously still bullishon on North dose, arkansas and
and we all own property here andand there's development
happening for Brian and Zach andI are continuing to look to
find opportunities that are onand off market kind of in the
smaller multifamily space andcommercial space, and so we just
(15:30):
see the data continues to pointtowards continued growth and
we're in a pretty healthy spotwhere we have a lot of buyers
and inventory is starting torise to where it's getting to be
more balanced, but we're stillwell under supply numbers and I
think that kind of poisesopportunity for us as investors.
(15:50):
And so any other thoughtsbefore we kind of wrap up here.
Speaker 1 (15:54):
I think we covered it really well.
I would say we could.
Speaker 2 (15:56):
Yeah, don't throw away any sub market of Northwest
Arkansas.
Like every single sub market inNorthwest Arkansas has some
sort of advantage to just getwith an expert If you don't
understand that sub market, likeget with someone who does.
There's opportunity in each oneof these sub markets.
Just make sure you'repartnering with someone,
absolutely, a hundred percent.
Speaker 3 (16:14):
Well, I love it.
Well, I love it.
Well, thanks for listening tothis episode.
We're going to continue tobring value and have some great
guests coming up.
We just talked through a coupleof deep dives for each of us
and some other cool topics aswell, so let's go back and
listen to those.
But thanks for listening andwe'll catch you next time.
Speaker 1 (16:33):
Thank you guys Love you Again.
Thank you guys for tuning in.
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Speaker 2 (22:05):
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Welcome to Northwest Arkansas Investing Podcast, your
go-to source for real estateinvesting in Northwest Arkansas.
Speaker 2 (00:13):
With your seasoned investor just starting out.
We bring you expert insights,market trends and practical
strategies to help you buildwealth through real estate.
Speaker 3 (00:20):
From buying and selling to property management
and long-term investmentplanning.
We cover it all so you can makesmart, informed decision in
this fast-growing market.
Let's dive in.
Welcome back to NorthwestArkansas Investing Podcast.
I got two co-hosts here, mrBrian Wagers and Mr Zach Stanley
Happy to have both these guyshere and we just went through a
couple episodes that I hope youguys listened to the past couple
(00:43):
of weeks A little bit of deepdive on deals and then, uh,
talking through pros and cons ofshort-term rentals and
long-term rentals.
But this episode we want to kindof get into.
We've done previously the rvsskyline report but we want to
kind of get into another kind ofquick update, um, prior to the
next skyline update, uh comingout and and just talk about kind
(01:04):
of what we're seeing in thecurrent state of the NWA market.
Zach and I are prettyentrenched in the single family
market and broker a lot of dealsin that space, and so we see a
lot of things there.
Brian's in the multifamilyspace and doing some development
and buying some bigger dealsand kind of keeping a pulse on
what things are happening kindof in each city as well there,
(01:26):
and so we want to talk throughthose.
But I guess, zach, give me justkind of a quick idea of kind of
a few things that you've beenseeing lately that have stood
out, whether it be you know thepace of houses moving, prices
and where've fluctuated, or evenkind of anything else that
maybe stood out lately.
Speaker 1 (01:46):
Yeah, so Northwest Arkansas market, um, I'd say, is
a different a little bit.
Uh, recently I I'm representingI have 35 listings right now.
Now, like 25 of those are landlistings, but the other 10 are,
uh, single family homes and whatI've been seeing as a whole is
(02:07):
some of these people that boughtin 2020, 2021, when the market
was quick.
The single family housing forthe sellers is slower.
Now it's slower, but we'restill.
The price trend is still up, sowe're just taking longer to
sell and we're having some pricedrops, but the price drops are
still up.
So we're just taking longer tosell and we're having some price
drops, but the price drops arestill hitting way higher.
(02:29):
So it's a lot.
What I'm seeing is a lot slowermoving.
I mean, I just had one on for361 days and we just got our
first offer and it wasacceptable and it's dumb.
Speaker 3 (02:43):
Just speaking on that .
I've got a quick note.
Days on market.
This is april in washingtoncounty.
Speaker 2 (02:49):
In benton county they're up 23 and 18, so just 99
, yeah, 99 average days onmarket for april 2025.
April 24 it was 91, so yoursentiment there of just feeling
it?
Speaker 1 (03:02):
yeah, you can feel it .
I can feel it from the sellers.
They're a little uneasy and I'mjust having to, at the start of
things, go hey, it might taketwo, three, four months to move
this, maybe more, but we justneed to be patient.
It's going to be okay.
If you eat some payments,you're going to get your dollar
amount eventually, right On thebuyer's side.
(03:23):
I don't know like.
I've heard mix from ourindustry.
I've heard people saying theyreally feel it.
I've been.
This is the busiest I've everbeen.
Yeah, a year over year.
Speaker 2 (03:32):
I mean it's yeah, on that same token where you said
be patient, benton county's upaverage price per square foot is
up seven percent from last year.
So days on market increase, butprices are still prices are
going down washington county,interestingly, for april is only
up.
Speaker 1 (03:47):
We're still up, though what 1.41 I mean it might
mean more, more concessions.
Maybe people are given washerdryers and fridges that aren't
accounted in those things to getdeals done.
But, um, as a whole, what Iwhat I was feeling is being
correlated on the on the data aswell.
Man, I've been through a lot ofbuyers in this market right now
, though.
Speaker 3 (04:07):
Yeah.
Just fishing for the right thing100% and I think a little bit
more.
Going back to days on marketgoing up so much and listings
sitting a little bit longer.
This isn't necessarily the casefor Washington County, but for
Benton County there's 32% morelistings than there were last
year in April, which isinteresting.
The more new listings and themore buyers have to shop for,
(04:29):
obviously, the longer that a lotof these homes are going to sit
.
But again, what you see in bothcounties is, you know, benton
County is up median sales priceand price per square foot a
little bit over 6% in BentonCounty and the same thing in
Washington County a little bitover 6%.
So we've just continued to see,um, you know the, the prices in
(04:51):
Northwest Arkansas outpaceinflation and uh, I don't really
see an end to that becausewe're both, you know, unless
there was some big macro uh, wehave no crystal ball unless
there was some big macro eventthat a lot of people were losing
jobs or whatever.
But we're still at what thissays in April four months of
supply in Washington County andin Benton County we're at five
(05:12):
months of supply and I think tobe in a healthy market.
Kyle mentioned this way backwhen, but is that what?
12 months or 18?
Speaker 1 (05:19):
months of supply.
Speaker 3 (05:21):
So we need to double our supply to be in a really
healthy, balanced market, andit's just I mean, it's hard to
see that happening anytime soon.
Speaker 1 (05:29):
Well, there's what I've seen, at least personally,
and you've probably other peoplehave probably seen as well is
there's a bunch of investorscoming in here that don't give a
piss if this thing's cash flowsor not, because they're coming
from a different market.
They see the projections andwhat they're comfortable with is
different from what people inNorthwest Arkansas are
comfortable with, and so they'retaking their comfort level
that's more risk adverse andbringing it to here and going
(05:51):
I'll buy that, that and give mea side of that and waiting out
for 30 years.
Well, I don't care if it.
If I'm negative, negative,negative for the five, you know
my positive is going to outrunmy negative and then they're
taking.
That's a risk I might not, I'mnot even willing to take, but
they're going.
I've seen on my end peoplethey're not caring about the
cash flow.
They just they don't.
(06:11):
Now we're finding things thatcash flow like they're basically
break-even properties, um,which ends up being.
You know, people are superhappy with that because they see
what there is.
I have when.
When someone calls me now I gowhat do you want real estate to
do for me, for, for you?
Um, and that that will tell meif this is the right market for
(06:32):
them or not.
If they call me and they go Iwant to retire in five years
from cash flow, I'll say youneed to go look at Fort Smith or
Little Rock, if you're going tolook at Northwest Arkansas.
But if they're like, hey, I'min it for the long haul, I'll
say you're in the right spot.
Speaker 3 (06:52):
And we'll keep pushing forward from there.
Of what I'm seeing?
Yeah, absolutely.
And when you continue to go upsix to 10% when it comes to
price per foot across the board,it's hard to argue that.
I mean if you can kind of keepit afloat with break even or if
you can make a little bit ofcashflow.
You know, it seems like ourmarket continues to shift
towards a more appreciationmarket, like a Dallas or an
Austin or you know all theseother spots have been for a long
time.
Speaker 2 (07:10):
You get a lot of that out-of-state influence in the
commercial real estate markettoo and multifamily specifically
.
I just hosted a lender panelone of our events recently and
they were talking about oneoutside capital still coming
like increasing outside capitalis coming into the market
Whether that you know that's aguy from California.
He's looking at purely basis Icould buy the same square
(07:33):
footage for this much like okay,I can sit on that and ride that
way better.
But also they were noting thatpeople with experience are still
getting deals done.
These lenders are still lendingloans, still doing a lot of
deals.
They're talking about guys whowere doing deals 20 years ago
and they were borrowing at 16%.
You know they made it work whenthey could borrow at 6%.
(07:55):
They made it work when theycould borrow at 3%.
They made it work at 8%.
Now they're having to put in alot more cash into these
commercial real estate deals.
You know you're having to put65% in for a lot of loans.
You know sometimes you can getcreative financing and up to 80%
depending on what kind of ifyou're doing like a HUD loan or
(08:18):
that's specifically onconstruction multifamily.
But there's other creative ways.
But the new standard is 65% tothem versus 80% used to be the
new standard for, like you wouldexpect to put 20% down.
Now they want to see cash in tosupport that DSCR.
But people who have experienceare doing the deals, so that was
(08:38):
a note.
I took away.
Speaker 3 (08:39):
Yeah, and a lot of, like you said, a lot of outside
capital coming in, and so a lotof these guys are coming in and
seeing opportunities for them tokind of add value to projects
and get out in one to five yearsand really make a nice spread
with how things continue totrend with absorption rates and
(09:00):
you know incoming folks that aremoving to north of Sargansaw.
The projections here arecontinuing to go up and whereas
everywhere else is eitheroverbuilt or, you know, prices
are starting to come down prettyheavily in a lot of places
we're still trending the otherway.
Speaker 2 (09:16):
I'd say cash is king right now, too.
People seem like they haveprojects that they thought they
were going to sell for thisprice, but they're still having
to hold on to it.
It seems like a lot of equityconstraint Now they're having to
put more equity, but if youhave the cash to put in a deal
right now and make a deal work,you'll be very happy.
You did that five to sevenyears from now, so I think it's
just getting your underwritingin check and your assumptions in
(09:39):
check.
Speaker 1 (09:44):
Maybe you can't underwrite for the extreme
growth we've had, but we'restill going to continue digging.
Yeah, absolutely, if we'rediving in more on a city by city
basis.
What I'm seeing is in BellaVista, there's about 100
short-term rental permits leftYou'll hear me talk about that
episode before this and so I'madvising my investors to get
those as quickly as possible,because there's a 600 limit on
(10:04):
that, and I think we're about490 to 500, somewhere in that
range, and so I'm advisingpeople to get that right now,
somewhere in that range.
And so I'm advising people toget that right now.
Um, and so belvis is continuingits upward trend.
Um, centerton is still kind ofchugging along like normal.
Now, a big thing in centertonis, uh, they did a really bad
job managing the wastewater andI don't know if you guys have
(10:24):
heard about that and I was chasecalled you, but um, the
centerton kind of screwed thepooch on wastewater and they're
needing a lot more capacity, andso a lot of projects are just
kind of SOL at this point, andso I'm really interested to see
what.
Basically, what I just said islike center 10 is building too
(10:46):
rapidly for what the wastewatercan handle and high fill, and I
can get into the details maybeat a later date.
But the capacity for sewageisn't there, and so a lot of
builders that built in the citygave the thumbs up on.
They're now like oh sorry, andso they're just having to hold
land and pay interest onlypayments for who knows when.
I know we talked with somebodyand they said it may be like a
(11:11):
two, three year, four year dealto figure out a problem like
that.
That's like a 10 to 20 milliondollar problem to figure out,
and so I'm interested to seewhat that does for the rest of
the area.
I think maybe some of thatbuilding goes to p ridge, maybe
some of it goes like I don'tknow, maybe to the south the
high full and south the highfill and stuff like that, just
(11:31):
because we got to find otherwastewater facility plants that
can take the, the, the growth,um, and so that's that's.
We could probably do a wholepodcast on that.
Along the main corridor I'm notreally finding a lot of investor
friendly deals that make sensein rogers right now, like
downtown rogers or rogers ingeneral, like around pinnacle.
(11:53):
I mean it's too expensive.
My deals I'm finding arefayette, centerton, bella Vista
really as a whole and then maybesome outliers of that.
But like Springdale you canmaybe find some stuff.
Fayetteville, right now theleasing cycle is getting done
with for the, for the students,and so that's kind of my 30,000
(12:14):
foot of the market real quick.
Speaker 3 (12:15):
Yeah, I love that.
Brian, give us a good idea.
I know you got a lot of stuffgoing on and you, uh, you got
something going, a deal going onin high full area.
You've got deals, uh, maybehappening in springdale, though
I know you're bullish onspringdale.
Speaker 2 (12:29):
Talk a little bit about what those areas have been
looking like yeah, so right nowbuilt in the early phases of a
200 unit development in downtownspringdale, right behind l
Luther George Park.
So it's kind of cool going fullcircle, because I haven't done
anything in Springdale for along time.
My first ever deals were therein 2017 and people were like, oh
, you're buying in Springdale.
(12:50):
Like what are you like, are youscared?
Like no, first, I grew up inCincinnati but it's fun, it's
cool to come full circle andlike, just whenever I go over
there go to emma.
It's like popping, like emma'salways during the day around
lunchtime at night.
You know I posted some eventsthere at the apollo.
So, um, I know some developersthat were strictly only looking
(13:14):
at bentonville have now are onlylooking at also springdale core
.
They were only looking atbentonville, so I are only
looking at also Springdale core.
They were only looking atBentonville.
So I talked to, like talk tothese developers throughout the
years and before it was like, oh, we're only looking for
Bentonville core, oh, you know,we're looking for a Springdale
now too.
You know the opportunity zoneand, and Springdale is pretty
phenomenal, it has spurred a lotof one.
It's in the opportunity zone.
(13:34):
You don't have to pay capitalgains but whether you do an
opportunity zone deal or not, uh, the benefit has, uh has
benefited Springdale really wellbecause of, because of the
Waltons and how much they haveinvested in the area.
Um, so, the Luther George park,obviously it has a bunch of you
know we had mayor Sprousetalking about that on a couple
(13:55):
of, you know, several episodesback.
So a lot of cool things goingon in Springdale.
I think that is a great market.
It's a big market too and Ithink you know there's different
sides to Springdale.
There's close to downtown.
You know there's a big dealproject happening on the kind of
the other side of Springdalethat you know huge pickleball,
complex mix.
So Springdale is pretty coolbecause within Springdale you
(14:18):
have different sub marketswithin it?
Speaker 3 (14:20):
Yeah, absolutely.
And now, just from aninfrastructure perspective,
you've got a, you've got 612.
Now that'll run all the wayfrom very east of 412 and then
the very west of 412.
That I think will really helpcongestion, obviously, and help
Springdale continue like peopleto kind of want to come to
Springdale and and drive throughthere and then on top of that,
(14:41):
uh, I think even 112 going northand south sounds like from
Tawny Town to Bentonville.
They're gonna have, they'reexpanding all that.
They're putting in like 50roundabouts or something stupid.
Speaker 2 (14:50):
Um, we're actually having Tyler Overstreet from the
city of Bentonville uh planning, so that'll be fun to ask him
some questions.
So if you guys have anyquestions before that episode
reaches out, shoot us a messageon DM us on Instagram or
LinkedIn and we'll make sure toask your questions to the show
too.
Speaker 3 (15:09):
Yeah, but overall I think we're.
We're obviously still bullishon on North dose, arkansas and
and we all own property here andand there's development
happening for Brian and Zach andI are continuing to look to
find opportunities that are onand off market kind of in the
smaller multifamily space andcommercial space, and so we just
(15:30):
see the data continues to pointtowards continued growth and
we're in a pretty healthy spotwhere we have a lot of buyers
and inventory is starting torise to where it's getting to be
more balanced, but we're stillwell under supply numbers and I
think that kind of poisesopportunity for us as investors.
(15:50):
And so any other thoughtsbefore we kind of wrap up here.
Speaker 1 (15:54):
I think we covered it really well.
I would say we could.
Speaker 2 (15:56):
Yeah, don't throw away any sub market of Northwest
Arkansas.
Like every single sub market inNorthwest Arkansas has some
sort of advantage to just getwith an expert If you don't
understand that sub market, likeget with someone who does.
There's opportunity in each oneof these sub markets.
Just make sure you'repartnering with someone,
absolutely, a hundred percent.
Speaker 3 (16:14):
Well, I love it.
Well, I love it.
Well, thanks for listening tothis episode.
We're going to continue tobring value and have some great
guests coming up.
We just talked through a coupleof deep dives for each of us
and some other cool topics aswell, so let's go back and
listen to those.
But thanks for listening andwe'll catch you next time.
Speaker 1 (16:33):
Thank you guys Love you Again.
Thank you guys for tuning in.
I'm going to go ahead and listsome sponsors off here.
We're going to start with FlatBranch Mortgage, specifically
Colton Kennedy.
Colton and I personally dobusiness together and he's a
wonderful lender here in theNorthwest Arkansas corridor.
Want to invest in real estateor purchase a home but feel like
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Speaker 2 (22:05):
Special thanks to one of our sponsors, who I've
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Speaker 2 (22:59):
Don't forget to connect with us on Instagram,
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Speaker 3 (23:04):
I have a question you want us to cover.
Send it our way and if you'reinterested in sponsoring the
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Thanks for listening and we'llsee you next time.
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