When is the best time to invest in apartments? Is now the best time? For those with a prudent eye, multifamily investment opportunities present in both up and down markets. If you are thinking that now is the time to add your apartment investments or rebalance your multifamily portfolio, you are in good company. The world’s ultra high net worth individuals, those with $30 million or more in assets, understand the value of physical assets and allocate their money accordingly, including real estate.
“Is now a good time to invest in multifamily assets and how do I ladder my growth strategies?” are two of the most common questions we receive at Better World Properties LLC. Is multifamily investing easy? No. Is it profitable? That depends. For those who invest in professional property management, apartment investments can beat other investment vehicles and provide admirable, long-term returns on investment.
Successful multifamily real estate investing requires knowledge, experience, nourishment, cultivation, support, some chutzpah and an educated feel for which direction the market is heading. Syndicators and brokers provide a valuable service by connecting serious investors with the best opportunities. It is often a who-knows-who business.
Real property is exchanged for real money, not futures or dividends. A multi-family asset becomes more valuable when it can produce higher income. Reducing operating costs quickly increases income. When executed correctly, buying off market creates instant equity. These deals go quickly and one must already be in the loop to be on the radar.
Recognizing where these opportunities are within multiple layers of an apartment asset is a coveted skillset. At Better World Properties LLC, we have decades of experience in digging through layers. We can recognize an apartment deal quicker than a duck on a June bug and more importantly can recognize a bad apartment deal and respectfully walk away and still remain friends.
When investing in public company stock, you are a minority investor. You are also at the whim and at the risk of the decisions made by those who are at the helm of that public company. As an owner of apartment properties, you are the CEO. You are able to hire professional property management, cut costs, make improvements and refinance your mortgage. With multifamily investing, you are more in control of your investment.
Six Top Tips for Multifamily Investment Success
- Professional: Underwriting, Due Diligence, Property Management and Process Improvement
- Cash Flow
Professional: Underwriting, Due Diligence, Property Management and Apartment Process Improvement
Licensed, professional apartment property management, strategic financing solutions and apartment consulting services quickly pay for themselves. While these are important individual steps, each step also strategically builds upon the next. Key word throughout: professional. At the Better World Family of Companies, we offer all of these services under one roof.
Better World Holdings LLC provides apartment deal generation, closing and financing. Better World Consulting provides multifamily process and performance consulting and Better World Properties LLC provides professional and licensed apartment property management, due diligence, acquisition, property rehabilitation and disposition. You can read more about the services of The Better World Family of Companies here.
The advantage of the Better World Family of Companies complete Apartment Life Cycle Solution is that we can find the right investment opportunities, perform experienced, professional due diligence, create equity through intelligent acquisition, improve property performance, increase cash flow, reposition and grow your portfolio from one property to one hundred. Our multifamily investors then have one source, one contact and one touchpoint when managing their apartment investments. That is powerful. Our unique ability to provide all of these services under one roof deal allows us to be very agile in the marketplace.
Recognizing value that others often miss is one of the things we are known for. A trained eye can tell how extractable that value really is and whether it is something that should be quickly scooped up or unapologetically passed over. This alone can make or break your multifamily investment. Is it possible to create sizeable equity the day you buy a property? You bet your bottom dollar.
Appreciation can be accelerated by conducting professional due diligence, understanding the intricacies of multifamily markets and knowing Texas like we do. Transitional neighborhoods that are on the cusp of change can provide fast appreciation. Knowing where to look and understanding and recognizing demographic trends is key.
If an apartment property doesn’t cash flow, it was either purchased incorrectly or it is being managed incorrectly. Simple as that. Cash flow is what keeps your apartment portfolio alive while it builds more equity. Improving processes that improve cash flow keeps the wheels turning.
At Better World Properties LLC, we cultivate and nurture relationships with vendors, lenders, communities, utilities and many of the services and regulatory agencies that intersect with apartment ownership. We are out in front of them every day doing business. They are an important part of successful multifamily investment and we treat them as such. These relationships help us keep our properties running smoothly.
An inexperienced apartment investor who does not utilize professional property management can quickly find themselves overwhelmed, overcharged, overspent and in the hole. These investors often come to us to help pull them out of a free fall and they want us to fix it fast.
Borrowing too much can be fatal. Highly leveraged deals are like hungry tigers that always have to be fed. Minimizing debt lowers risk. Strategic and creative multifamily financing and deal structuring is an important part of every successful apartment portfolio investment. Don’t buy more than you can afford. Start smaller if necessary. Buy 150 units instead of 300 units. Refinance and pull equity out of deals to finance bigger deals. This is one of our greatest joys, assisting our multifamily investors in successfully stair stepping their portfolios year after year.
When a professional apartment property management company manages an apartment property as if it were it’s own with heart and compassion, it shows. It not only shows in pleasant and happy residents, it shows in bottom line returns. It shows in the maintenance. It shows in the way the staff interacts with the residents. A community run with heart is a living, breathing entity, where management truly cares about their residents and creates a synergistic family. When people collectively and genuinely look out for each other and their apartment community as a whole, this makes it a better world all the way around, adding to value to the apartment community and adding value to the community-at-large. Are your apartment properties being managed with heart?
Seeing The Vision Long Before the Deal is Done
Seeing the vision of the long-term, successful outcome of an apartment property investment from the first glimpse of a prospectus or a 2-hour walk-through takes years of experience. They don’t teach this stuff in a classroom. You have to roll up your sleeves, get your boots dirty, turn over a few rocks and brush aside a few snakes. We aren’t afraid to get our boots dirty. In fact, we prefer it. You can read more about Better World Properties LLC case studies here.
Professionals Prefer Professionals
Accredited investors trust proven professionals with their money. While all investing involves some degree of risk, real estate may be the least risky of all, especially when one does their homework correctly. Be sure that you are dealing with professionals who treat your investments like their own.
If you would like to learn more about apartment investing in Texas or improving the results of your Texas apartment properties, give us a call. Better yet, come visit. We love to talk apartments.
As John Steinbeck passionately observed, “Texas is a state of mind. Texas is an obsession. Above all, Texas is a nation in every sense of the word.”
If you would like to visit about your apartment property management or operations and add properties to your multifamily portfolio, give us a call. Better yet, come visit. We love nothing better than to talk apartments.