For those interested in investing in multifamily real estate, the sheer amount of information can feel daunting – but even small bits can be useful! We thought we’d compile a quick list of BAM’s helpful hints for today’s BAM Blog…
- At this point in the cycle, BAM is looking for B+, to A, A- newer assets.
- BAM founder and CEO, Ivan Barratt, recommends attending seminars – saying that the price of admission is worth every penny if you take away even one useful nugget of knowledge.
- Despite fears of a looming recession, the multifamily industry is currently doing well: rents are steady, occupancy is high, demand is high, and demand is anticipated to remain high even if a recession strikes.
- Generations Y, Millennials, and Boomers make up some of the largest rental demographics. From younger members waiting to start a family, to Boomers downsizing, these groups have consistently driven demand.
- For a good grasp on the industry, Ivan Barratt recommends those new to the industry read books that aren’t just real estate specific. See his book list here.
- Are you a passive investor or an operator? The answer may lie in whether you already have a successful day job you’re committed to. Passive investors do well to invest with a group like BAM, and likely already have a solid income stream from a successful career; while those who want a career in real estate may want to follow the path of the operator.
- If you’re just getting started, don’t worry about five deals down the road – worry about the next deal. Ivan advises to focus on getting that deal done instead of how you’ll handle the next deal or the one after that.
- Ivan Barratt advises those entering the industry to be as transparent as possible – a policy that has served him well. In BAM deals, you’ll find charges listed clearly and easy to understand.
- Looking for a property management company? Don’t believe everything you see online! As Ivan has noted, you can’t keep all the residents happy – and the unhappy ones frequently post reviews. Instead, ask others who have worked with the property management company and who have used them long-term.
- Worried about recession? Having a diversified portfolio is always a good idea. Multifamily assets carry less risk in general than stocks/bonds.
- Larger properties bring what Ivan calls ‘economies of scale’ – you’ll have the benefit of on-site management, and less risk if a resident moves out (since you have more residents).
Want more insider information? Go straight to the source and visit ivanbarratteducation.com! You’ll find a free library with articles and videos featuring Ivan and his industry insight and experience.