607: Multifamily Q&A: How to Start, Scale, and Succeed in Apartment Investing
BiggerPockets Real Estate Podcast
BiggerPockets
4.8 • 16.5K Ratings
🗓️ 10 May 2022
⏱️ 84 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
Submit Your Questions to David Greene
The 3 Cs to Achieving Success as an Investor
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
Book Mentioned in the Show:
Raising Private Capital by Matt Faircloth
Connect with David:
Connect with Andrew:
Andrew’s BiggerPockets Profile
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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 down 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 |
| 0:37.1 | the future performance because it is something that's in your control. |
| 0:47.2 | What's going on, everyone? |
| 0:48.3 | 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 |
| 1:01.7 | like my good friend Andrew Kushman who was here with me today. |
| 1:05.2 | Andrew and I will be co-hosting this one. |
| 1:07.9 | We invest in properties together. |
| 1:10.2 | Andrew's 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. |
| 1:17.9 | In today's episode, we do a deep dive into multi-family apartment investing |
| 1:22.4 | with a specific bent towards how to make it work in this hot environment while interest rates |
| 1:28.3 | are rising. |
... |
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