Neil Shekhter: “They should freeze all payments for multifamily so nobody gets hurt”

One of LA's biggest rental landlords on what he would say to Mnuchin

Los Angeles /
Apr.April 17, 2020 01:15 PM

If Neil Shekhter had 10 minutes with Treasury Secretary Steve Mnuchin, his demands would be simple: Pause all payments in the multifamily industry, for the entire food chain. That means landlords, banks, debt funds, and of course, tenants.

“If you pause everything, then nobody gets hurt,” Shekhter, the founder and CEO of NMS Properties, said in a conversation with The Real Deal’s Hiten Samtani. “Because everybody has payments to make — even the bank, their money’s not free. If they don’t get paid, they have problems. Everybody has somebody to answer to. And at the top of the food chain is the government.”

Shekhter talked about the challenges of running a multifamily empire with several active development sites in the midst of a global pandemic. He also spoke about concerns of a national rent strike and the unpredictability of rental income going forward. But he remained steadfast in his belief that multifamily housing would emerge as the strongest sector in real estate after all this has passed, and had advice for up-and-coming investors.

“The only safe sector today is multi,” he said. “If they buy an apartment building even at 2 cap, they’re going to be fine, because interest rates are so low. And they’re going to be low for a long time.”


Related Articles

arrow_forward_ios
(iStock)
Fry’s Electronics, go-to for high tech pros, closes forever
Fry’s Electronics, go-to for high tech pros, closes forever
(iStock)
Southern California housing rush was unabated in January
Southern California housing rush was unabated in January
California Ripped Fitness (Google Maps)
Maxed out: Gym closes after racking up $1M in Covid fines
Maxed out: Gym closes after racking up $1M in Covid fines
President Joe Biden and Gov. Gavin Newsom (Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)
Biden’s executive order fully reimburses LA for Project Roomkey
Biden’s executive order fully reimburses LA for Project Roomkey
Cronies Sports Grill in Agoura Hills and Tinhorn Flats Saloon & Grill in Burbank (Google Maps, iStock)
LA County sues two restaurants for outdoor dining
LA County sues two restaurants for outdoor dining
Assembly Speaker Anthony Rendon, Gov. Gavin Newsom and Senate President Pro Tem Toni Atkins (Getty)
State extends eviction moratorium, creates $2.6B rent subsidy program
State extends eviction moratorium, creates $2.6B rent subsidy program
(iStock)
Outdoor dining to return in LA County this week
Outdoor dining to return in LA County this week
Gov. Gavin Newsom (Getty, iStock)
Newsom lifts stay-at-home orders but will restaurants reopen?
Newsom lifts stay-at-home orders but will restaurants reopen?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...