As I prepared for the Multifamily Investor Nation Summit, I had some inspiration (and realizations) of what it takes to make it in this business when you're starting out – even if I were starting at square one today...
One question I hear a lot is “Should I just go out and buy an apartment complex, and hire a property management company?” - vs. being a passive investor with me. This is a question I love answering!
If you're like me, you likely started off using a CPA in a single-owner office, who does a pretty good job every year at tax time. Let me tell you why this could be a big, costly mistake – especially as your investment portfolio expands and becomes more complex.
Another “frequently asked” fund question I'm hearing a lot from investors involves timing: specifically, it's about the pros and cons of getting into the fund sooner vs later. I explain why you might not be getting the benefits you think if you hold off and get in late.
One topic that I personally hear, and think should be considered by current real estate investors involves the return on equity calculation. I'm often surprised by how many people aren't looking at this calculation. I'll give you a great example to illustrate how it works…
Another question that I've been getting more frequently from investors involves the fund. The question I'm hearing more as we near the fund launching is: Is this a blind pool? The answer to that is yes...and no. ..
Another common question I hear from current and potential investors is how BAM deals with finding deals at this point in the cycle. Similarly to what I've said about how to succeed in this industry, the answer here is simple -if not easy.
People interested in diversifying their portfolio and investing in real estate may ask “how can I invest in multifamily real estate?” It seems like it should be as easy as finding a property, doing a little leg work, and then making an offer – but as we've learned from BAM founder and CEO, Ivan Barratt, there's a lot more to it than that...