Regulations pose the biggestrisk for multifamily investment, according to some speakers thisweek on the New Investment Landscape: What Are the Opportunitiesand Challenges that Lay Ahead for Investors? panel at GlobeStApartments. The panel conversation included JasonHaye, VP and national sales director at VelocityMortgage Capital; Noah Hochman, co-chiefinvestment officer and head of capital markets atTruAmerica Multifamily; DavidHarrington, EVP and national director of multifamily atMatthews Real Estate Investment Service;Trevor Koskovich, president of investment sales atNorthMarq; Nat Kunes, SVP ofinvestment management at Appfolio andChris Nebenzahl, institutional research manager atYardi Matrix.

Rent control measures, which are sweeping the country as aresponse to the affordability crisis, is at the top of the list ofregulatory hurdles. "The biggest risk we have is regulatory risk,"Hochman said on the panel. "This is a real risk. I think thatpeople need to get involved."

California, where Hochman's company TruAmerica Multifamily isbased, recently passed a statewide rent control bill capping rentincreases at 5%. According to Hochman, this specific bill won'thave much of an impact on the investment market. He called it ananti-gouging measure meant to give some red meat to theconstituents. While this specific cap isn't a major concern, itcould be the beginning of rent control measures that are. "There iscertainly concern about Draconian rent control," he says, addingthat for now, the measure won't impact investment appetite. "Peoplestill buy rent control properties in L.A., and they still sell at4% cap rates."