More often than not, the epic journey from real estate investor to real estate mogul involves more than basic residential houses. I mean houses are great – don’t get me wrong. But most investors I know typically envision multifamily investments to be at least a part of the mix at some point – maybe even the ideal endgame.
And it’s classic “Rich Dad, Poor Dad”, right?
You start off with some residential rentals, build up your portfolio, manage them well, and then eventually leverage your way up to bigger assets with a more zeros on the end.
And the more you learn about real estate investing, the more tangible and apparent the advantages of multifamily apartments tend to become. Advantages like:
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More money: More zeros equals more profit for you, right? At least that’s the idea.
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Inflation hedge: Multifamily real estate investments tend to hedge well against inflation.
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Tax wins: Multifamily real estate is nicely depreciable.
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Economies of scale: As in, 1 roof shared by 3 households vs. 3 roofs to maintain and repair.
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More passive income: As in more income (see above) and also more passive – any experienced landlord will smile wryly at anyone who calls single family rentals “passive income”. Not so much with apartments.
Yes, there are more than a few compelling reasons why multifamily assets are so attractive.
But Is Now Really a Good Time for Multifamily?
A really great question actually. And a quite reasonable one to ask before making the leap, given the squirrelly twists and turns our real estate market and economy have experienced in recent years.
A quick word about the title of this lesson: Some of you may have thought we meant to say, “When is a good time?” or “Is Now a Good Time?”.
Nope. We meant to say exactly what we said: When is ‘NOW’ a good time for multifamily investing? Think about it…
So in today’s mogul lesson, we aim to help answer that for you. And frankly, we could have gone about it one of two ways:
Option 1: Go find a bunch of data to throw at you.
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Like how the U.S. population is increasing by ~3mm folks per year (plus legal immigrants), and 75- 85% of them would rather rent than buy.
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Or how the 18- 35-yr-old population totals ~65mm and will be relatively constant for several years – which is also the age group that generally rents multifamily apartments.
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Blah, blah, blah…more statistics ad nauseam.
Or Option 2: Let you hear the real deal, right from the horse’s mouth of a successful multifamily investor who’s currently active in multiple markets, but was in your very shoes just a few short years ago.
You guessed it – option two…
Meet Chris – Recovering Residential Investor
Up until three years ago, Chris Urso was just like most of the rest of us – a full-time residential real estate investor, hopping houses day in and day out… “Just a good ole’ boy, never meaning no harm…”
But then something changed. Through a series of interesting events (which you’ll hear when he shares his story), a switch in Chris’ head just flipped one day, and he made the jump from residential investor guy to apartment investor guy.
And he swears one of the biggest mistakes of his career was not making the jump sooner.
Today, only three short years later, Chris…
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Owns a growing pile of nicely cash flowing apartment buildings in various markets (Just acquired his 5th in 2 years).
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Specializes in small to midsize properties 20-200 units (in specific markets throughout the US).
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Is a machine at raising capital/private money (Raised $7mm+ in private money in the last 36 months alone for various residential and multifamily deals).
So without further ado, let’s jump in and eavesdrop in on Chris’ very strong and certain opinions about the state of the multifamily investing opportunity in today’s market…
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Mogul Elite: Download a transcript and MP3 of this lesson in the Power Pack tools for this lesson.}
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Don’t ignore the numerous benefits that multifamily properties can bring to your portfolio of real estate investments.
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Consider the robust demographic data that increasingly trends in favor of multifamily investments.
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Realize that, with a little gumption and hard work, you can get started on your own multifamily investments within the next 6-12 months.
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Enjoy the unique cashflow stability and economies of scale afforded by multifamily real estate.
Christopher Urso
is the founder of URS Capital Partners and National REIS. Chris has been investing in real estate since 2001. Over the years he has been involved in all aspects of real estate, from single-family fix and flips, buy and hold cash flow houses, and finally to apartment buildings. His real estate investment career only took off when he purchased his first apartment building 3.5 years ago. He now controls over $15,000,000 of apartments and has raised over $8,000,000 of private money in just over 3 years. He now structures investment partnerships to acquire large apartment complexes and also private coaches investors helping them purchase their own apartment buildings.