People often ask me: What are the most important statistics to look at when choosing a market to invest in multifamily real estate properties?
You’re trying your best to get your real estate investment business off the ground. You’ve done your homework. You understand strategy. You can underwrite the deals. You’re serious, not some tire-kicker. You have funds to close.
Here is the sure-fire way to avoid getting burned at the top of the market. In one word, it’s “discipline.”
Short answer – because focusing on appreciation is easy. Investing for cash flow requires you to do some work.
Amateur investors think that the pros just “know it all,” that they have secret access to great deals, and then when they see one, they instantly know it and jump on it. Amateurs think the pros’ knowledge is so powerful that they can smell a bad deal a mile off and keep far away.
Real estate can be lonely. Building a real estate business is often best done with a partner who has skills that you don’t. And it can be more fun that way too. But how can you avoid partnering with someone who’s bad for you – or just plain bad?
A bad management company nearly killed my first deal. In fact, I am still digging out of the mess they made for me.
I had this problem, too. I live in Brooklyn, New York, one of the most overpriced markets in the country. Even after the Great Recession, when I got started, cash-flowing assets were very hard to find in this market. I was competing with cash buyers happy (for some reason) to wait years for appreciation and home-buyers who were not thinking about returns at all.
The first property management company I hired nearly destroyed my business. Knowing what I know now, how could I have avoided this problem? Whether you own locally or far away from home, here are ten things you can do to find the right management company.