There’s no doubt about it…
Investing in multifamily properties can’t be beat! (At least not for me.)
While I can give you a lot of reasons for my decision to buy multifamily properties to rent my units out to the good people of Charlotte, North Carolina, there isn’t enough room to go into depth right now.
It would be a good idea to read my Reasons to Invest in North Carolina article once you’re done with this one, however, so you can get a better picture. I give you 12 reasons in that article! Or you can Get your Free guide “TOP 10 Reasons to Invest in Charlotte, North Carolina” here.
For now, let’s stick to why multifamily… which is something I did a quick video on recently. If you didn’t watch it, now’s your chance.
The 3 “F’s” of Investing in Multifamily Properties
I can’t really picture myself participating in other types of properties at this time. That’s not to say that down the road I wouldn’t perhaps take down a few commercial buildings or change the use of a couple of my properties to serve a different niche than families, but right now it’s multifamily all the way… because I get to serve families… and that makes me feel really good knowing I’m providing good and affordable housing to people who need it.
When talking about why I invest in multifamily properties, it really comes down to three things:
Like I said, providing safe, affordable housing to the families of Charlotte, North Carolina, makes me feel really good. So, I guess you can say I’m a little emotional about it.
I want to own lots of multifamily units large and small so I can serve even more families. After all, this is the type of tenant that matches who I am as an investor. That means families who want to live in 2-bedroom, 1-bath apartments and other multifamily rental units. Fortunately, the area in Charlotte that I chose to invest in happens to have a lot of properties with units in this configuration.
The larger the multifamily property, the better. That’s why I’m looking at more sizeable apartment buildings now. I know I can make a greater impact on more families’ lives by managing larger expectations. If I make an improvement to one unit, it means I’ll be making that same improvement to all the units, thereby making an even bigger impact on more people’s lives and all under one roof. With every improvement I make to my properties pushes the overall value up, which brings me to my next point.
On the side of creating cashflow through real estate investing, it’s all about the numbers. With multifamily properties I can control the value. It’s not about keeping up with the comps down the street. It’s about adding value to my properties. The more value my team and I add to a property the more that property appreciates. I’ll get back the value I put in at the time I implement my exit strategy and sell my properties, too, so I’m not worries about spending too much. (But I am still careful with spending on the improvements. They have to make sense.)
When creating cashflow through real estate investing, it’s all about the numbers. With multifamily properties you can control the value.Tweet
When dealing with apartment buildings, this becomes more scalable than when pushing up the value of single-family properties or even duplexes and smaller multifamily properties. If there’s anything I’ve learned in my corporate life it’s that’s scalability is always a good thing. I can create a similar living experience for all my tenants. That’s a win-win for them and me.
Plus, I can get everything fixed under one roof using the same set of tools, because everything in each of the units is going to be the same. For example, if I want to change out air conditioning vents in one unit, I know my maintenance guy can use the same screwdriver to do exactly the same improvement in all the units!
Expenses and overhead are lower than if I were trying to manage and maintain a bunch of different, separate properties, too. And when it comes to managing, maintaining and making improvements to the units in a single building, which are all under one roof, it’s a whole lot easier than trying to manage and maintain a bunch of different single-family properties that are spread out across the city. Each house in that case is different, which means my guys would need different tools for each one, different parts and pieces, different everything!
This boils down to the teams in place to handle all the working parts that go on in my multifamily properties. These are my boots on the ground. For me this is critically important because I don’t live in Charlotte where my properties are located. Heck, I don’t live in North Carolina. I live and work in Spain!
That means my frontline people have to be really good at their jobs. Now that I’ve found these talented people, each responsible for different aspects of running and maintaining my properties, we’ve been able to put systems in place that make operations seamless and stress-free. It doesn’t get better than that when doing the long-distance investing thing.
I have people who search for properties, do initial walk-throughs of those properties, give me feedback and recommendations for rehabbing if they need it, and then both a management and legal team there in Charlotte to help me from beginning to end in my deals and on to filling my units with great tenants.
Man, I’m grateful for these people! I also have a legal team in Barcelona so I can work with investors in Europe who want to take an equity partnership position in my properties!
Investing in larger and larger multifamily properties will help me reach my goals of splitting my time between living in Spain and the U.S. a whole lot faster than if I were to only buy single-family rental properties. The exciting news is that I’m getting closer to that goal with every new transaction!
I’m getting to spend more and more time with my family, which is excellent. My wife is happy. And you know what they say… Happy Wife; Happy Life!
I can’t tell you how grateful I am for the investors, sellers and my team, because all of these individuals are helping me attain my life’s dream.
If you want to learn more about investing with me in my multifamily properties, well, it’s time to talk. I’m closing on yet another property very soon!