Decisions on buying apartments are made by formula and carefully executed, experienced due diligence. With a good buy, effective property management, and growing business and industry demographics leading increasing population, it’s hard for wise real estate investors to make a bad decision over the long term.
Much harder and perhaps more important, is knowing when to sell a multifamily investment. While every prudent apartment investor or apartment owner should always have a good exit exit strategy, many assume everything will go according to plan over a period of years. What happens when they don’t?
Holding a property longer when the stars don’t align is often the least disruptive choice. However, the reality is, time is not always your friend.
- What worked yesterday may not work tomorrow.
When things are not working out as planned, first look to property management. First, and most important, do you have professional, licensed management in place? Winging it often costs substantial points in reduced ROI. Professional apartment management can quickly add value to your bottom line. From experienced rent collections and effective marketing to maximize occupancy, to optimized vendor relationships and process and property improvement to increase revenue and long-term value, professional property management can pay for itself lightning fast.
Is your current management on top of things? Are they consistently reviewing process and property improvement with each of your properties? Do they have their finger on the pulse of the market? If not, it may be time for a change.
- You’ve got equity on your side
A run up in property value is cause for celebration and a prudent time to review multiple strategies. Is it time to harvest equity with re-financing? Do you have sourcing for investor friendly multifamily financing? Better World Holdings LLC is well versed in refinancing, 1031 exchanges, equity financing and strategic apartment financing solutions. Is it time to sell outright, capture equity and seek more value-add in a different promising market? It can be quite freeing to divest an older property, capture years of equity and invest in a newer property requiring less maintenance in a growing market. Do you know when each strategy is best deployed? These are conversations, which often go much deeper than simply when to buy apartments and when to sell apartments are something that we discuss everyday with our multifamily investors.
- Knowing When To Pull The Trigger
Too often, investors may be slow to realize when their strategy is not developing as planned. Things change. Markets shift. Financing becomes due. New developments may overshadow existing properties.
If you are running out of ideas on how to optimize cash flow and make money, it may be time to sell. If you are bored, tired, frustrated, grumpy and want to kick the cat every day, it may be time to sell.
Sometimes, the exit strategy, structure, assumptions, direction or support are not all they could be. If you are not ready to change directions, it may be in your best interest and time to sell.
Selling doesn’t always mean failure, but failing to identify when your strategy is no longer working is.
- Emotions
People invest in real estate to make money. Throughout the life cycle of an apartment property investment, some owners become emotionally attached to a property or properties within their portfolio. It may be the location. It may be the staff. It may be the hard work put into a rehab and the beautiful turnaround. They love the property or properties. Emotional attachment (and it happens often) can often lead to the inability to objectively monitor the pulse of the market. That’s where deploying professional multifamily property management, experienced apartment process improvement and strategic apartment financing solutions need to be at your fingertips.
These professional services help you take the emotion out of key decisions that can make or break the longevity of your investment. Presenting you with hard market data, detailed monthly reporting and proposed process improvements helps you keep your finger on the pulse on your portfolio and your eye on your exit strategy.
Whether Class A, B, or C conventional apartments, senior living or condominiums, there are specific strategies that work amazingly well depending on where your properties are in the life cycle.
We simplify apartment management processes. We improve multifamily outcomes and ROI. We manage Texas apartment properties to be better properties. And, we make it fun while we do it because we love what we do and we love apartments. Better World Properties LLC, Better World Holdings LLC and Better World Consulting offer complete apartment life cycle solutions. All under one roof. You read more about our services here.
What part of the life cycle are the properties in your apartment portfolio? Is it time to review your acquisition and exit strategies? Are loans coming due? Do you need strategic refinancing, workarounds and conversions? Could your properties use a good dose of process improvement resulting in increased ROI? We thrive on these questions and finding the solutions.
Give us a call. Better yet. Come visit. We love to talk apartments.
(713) 559-6975