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BiggerPockets Real Estate Podcast

607: Multifamily Q&A: How to Start, Scale, and Succeed in Apartment Investing w/Andrew Cushman

BiggerPockets Real Estate Podcast

BiggerPockets

Investing, Education, Business

4.8 • 16.6K Ratings

🗓️ 10 May 2022

⏱️ 87 minutes

🧾️ Download transcript

Summary

Is multifamily real estate investing as complicated as investors make it out to be? If you’re Andrew Cushman of Vantage Point Acquisitions, you’d probably argue that although multifamily has a bit more complexity than single-family rentals, it’s still, by all means, profitable for the everyday investor. In the early 2000s, Andrew didn’t know anything about pro formas, apartment underwriting, or the best type of mulch to use on large-scale landscaping. Now, more than a decade later, Andrew has been able to lead his team in acquiring, syndicating, and repositioning over 2,500 multifamily units. He’s here with David Greene to answer live questions surrounding anything and everything related to multifamily investing. He gives stellar takes on the current state of the market, how rising interest rates will affect multifamily investing over the next few years, and the best way to increase your ROI (return on investment) on a multifamily acquisition. You don’t need to be a large-scale apartment investor to take away some golden nuggets from this episode. Even if you’ve never thought of investing in multifamily, Andrew frames multifamily in a way that’ll have you wondering, “could I buy that apartment down the street?”  In This Episode We Cover The five most important factors to understand when looking at a multifamily deal  Multifamily debt and equity, plus how they dramatically differ from single family rentals How to use pro forma calculations when underwriting a deal and protecting yourself from overinflated profit numbers Whether or not today’s rising interest rates will cause a sell-off of multifamily properties The easiest improvements that will dramatically boost your ROI on a multifamily property What rookie investors get wrong about finding good deals in today’s market  And So Much More! Links from the Show BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast Submit Your Questions to David Greene The 3 Cs to Achieving Success as an Investor GoBundance BiggerPockets Podcast 170: The Journey From Flipping Houses To Owning 1470 Units BiggerPockets Podcast 279: How to Find Overlooked Opportunities in a Hot Market BiggerPockets Podcast 586: The 8 Steps That Will Stop You From Getting Burnt on Multifamily Deals BiggerPockets Podcast 571: Is This Deal Worth My Time? The 6 Crucial Steps to Vet a Multifamily Deal David Greene Meetups David Greene Team Book Mentioned in the Show: Raising Private Capital by Matt Faircloth Connect with David: David’s Instagram David’s BiggerPockets Profile Connect with Andrew: Andrew’s BiggerPockets Profile Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-607 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

This is the Bigger Pockets Podcast Show 607.

0:05.0

That's one of the beautiful things about multi-family.

0:07.6

In single-family, you buy a house and the average price in that market goes down 30%.

0:13.7

Well, yours probably went down 30% too.

0:15.8

In multi-family, your value on the net operating income.

0:19.4

So if you're a really good operator, you can still increase the value of your property

0:23.9

in a flat or down market, even if everyone else is struggling.

0:28.4

So that's one of the really cool things.

0:30.6

And that's part of why, again, with Caviaught, it's somewhat okay to pay a little bit for

0:37.2

the future performance because it is something that's in your control.

0:47.4

What's going on, everyone?

0:48.4

This is David Green and I'm your host of the Bigger Pockets Real Estate Podcast.

0:52.4

At Bigger Pockets, we want to teach you how to build financial freedom through real estate.

0:56.8

We do that through formats like this podcast where we bring in experts on specific topics

1:01.6

like my good friend Andrew Kushman who was here with me today.

1:05.4

Andrew and I will be co-hosting this one.

1:08.1

We invest in properties together and use the best multi-family investor that I know.

1:12.4

I call him Hawkeye from the Avengers because when this guy lets an arrow go, he never misses.

1:18.0

In today's episode, we do a deep dive into multi-family apartment investing with a specific

1:23.4

bent towards how to make it work in this hot environment while interest rates are rising.

1:29.2

Andrew and I tackled several difficult questions and I think it came out really good.

1:33.3

Andrew, how are you today?

...

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