If you have not read What is Asset Management?, check it out to familiarize yourself with this key function of your sponsor team and why the role is essential to managing any apartment investment. Recognizing the importance of a solid asset management team, what does it take to be a good asset manager? As passive […]
I am excited to share that I will am participating in my first multi-family real estate investment as a Limited Partner in a Real Estate Fund. Investing as a passive investor is a great way to learn the apartment syndication business and grow wealth at the same time. After months of searching for the right […]
Active and Passive Investors alike should understand the critical purpose and value proposition of property managers in commercial real estate. Recognizing the importance of a PM in single-family buy-and-hold rentals, they play an even more significant role as an extension of your team when dealing with apartments and large multifamilies. Below highlights three very important […]
As you may know, even in great markets, there are sub markets or pockets that are more or less desirable. These neighborhoods may either attract growth, ramain stagnant or be on the decline. If you are an out-of-state investor or a passive investor in an out-of-state market, how do you know if the neighborhood is […]
As you underwrite multifamily assets, you will inevitably evaluate its rent potential, in terms of where the rents currently stand against the market and how close to market levels can they align. Of course, during due diligence, there is sufficient opportunity to evaluate this alignment and potential through property management resources and market analysis. However, […]
As you begin to analyze markets, you will encounter the term absorption. Knowing what it means and its importance is essential to your understanding of the subject market. What is absorption? Absorption is a metric used by multi-family investors to measure tenant demand. It is used to describe the extent to which multifamily units are […]
Passive Investors should understand the concept of value-add, which is how sponsors create value for investors and residents. This happens from increasing the income potential of the apartment. Usually, these value-add opportunities are found in C-Class Apartments. What is C-Class? In general, apartment class is a subjective rating for the condition or desirability of the […]
One of the primary attractions to my site, blog contents and guest appearances on podcasts is that I am a working professional while also investing in multifamily real estate. It has not been an easy journey, and even today it is not without challenges, but it is easily possible. My goal is to help working […]
Risk is inherent in any investment decision. However, risk can be managed, especially when there are proven models and systems. Just like playing a sport or learning a game, best practices exist and those who follow the proven path are more likely to find success in achieving the goal. When it comes to multifamily investing […]
If you are new to apartment syndications, I recommend you check out What Is Multi-Family Syndication, which should be a helpful resource and introduction into how this niche works and how many have become financially free by investing in apartments. Now that you are somewhat familiar with how it works, why would any working professional […]
Passive investors may hear the team stabilized when investors are describing an apartment’s occupancy. Stabilized assets simply refers to the level of occupancy. Although lenders, brokers and syndicators may all have their own ideal for what is considered stabilized and that term can vary even further by the investment asset relative to the market for […]
Multifamily investments have insane scalability and raising net operating income through value-add activities can create immense value for investors. For illustration, I want to provide a hypothetical example. You become a passive investor in an apartment syndication for a 144-unit in a growing neighborhood in Jacksonville, Florida. The average rents of $1,050 for the all-two […]
Unfortunately, when it comes to the subject of investing, much behavior demonstrates a lack of differentiation between investment and speculation. Investing Investing, at its core, describes the concept of buying an income-producing asset. In exchange for your cash, you now have an asset that pays you. Examples include dividend-paying stocks, cash-flowing real estate, or note […]
There are tons of ways to add value to your multifamily investment. Some may be physical improvements such as paint, additions and landscaping and others may be operational in nature such as raising below-market rents, reducing expenses by negotiating better contracts or new sources, and the list goes on. But there is one great and […]
Along with the T-12, reviewing the rent roll is a great starting point at underwriting apartment investing opportunities. While information on the rent roll must be verified during due diligence, it makes for a great source of the following information. Upcoming Vacancies The rent roll should show the names of residents as well as their […]
If you are considering actively or passively investing in apartment syndications, it is probably a good thing to know the biggest drivers of operating expenses. Management, or mismanagement and lack of preparation, of these expenses can make, or break, your investment plan. So pay attention to these two top drivers of operating expenses in most […]
When investing in apartment syndications, whether actively or passively as a limited partner (LP) it is important to know and understand the key successful factors from the property management team. First of all, the property management can make or break the investment opportunity by either underperforming to the plan or executing with solid performance. One […]
1. Get Educated It pays dividends to invest in your thinking. What is financial freedom? How do the wealthy create their wealth? What is passive income? Is it possible for passive income to replace earned income? Reading and understand these concepts is a prerequisite to massive action in apartment investing. After creating the growth mindset, […]
As busy professionals who aspire to grow passive income and wealth through real estate estate it can be difficult for us to become immersed in the world of apartment investing. With little available time, it becomes more consuming simply finding the resources to network, let alone making the time. Here are three ways any busy […]
We busy professionals may work in different fields and have varying degrees of studies and experience, but we have a few notable characteristics in common. We are good at what we do, We are known in our fields as professionals, we make good money doing it and there is something about our careers that we […]
If you stuck with me this long, you’d see that I have over a hundred articles about real estate investing and the multifamily asset class. Why do I spend so much time thinking of topics and putting the information in word format for readers? Solidify The Investment Mindset The truth is, I want others to […]
Although I started my real estate investing journey in single family housing, I knew that the end goal would be to own multiple multifamily assets and apartments. I did not know that normal people can participate in these investments, but when I got educated, I was hooked. Now that I am focusing on multifamily assets, […]
If you are not familiar with a real estate fund, it is a pool of investor capital collected by a sponsor to invest in real estate assets. Investors are Limited Partners in the fund and are incentivized by targeted returns and execution in accordance with the business plan for the real estate assets, very similar […]
Half the planet wants to invest in real estate but does not know how. They think that to be a real estate investor you have to go out and get a license, or flip some homes, or come from an established family business with many resources. They approach the idea of wealth creation from real […]
We each see various aspects of the world differently. But one thing we may all agree on is that change is constant. Times change, situations change and people change. Dynamics and flexibility is a key to success. For the last two years I have been on a very focused mission to scale from my single […]