Acquiring real estate can be complex, and financing becomes a crucial element that can make or break a deal. Even if underwriting points to a sound investment opportunity, poor financing can lead to unexpected costs and complications, quickly transforming a promising asset into an underperforming investment.
It has been some time since our last special report. Each special report we have written highlights a pressing and urgent topic that is germane to real estate, and usually, the multifamily market in the United States.
In recent years, the real estate market has witnessed a growing interest in flex industrial warehouses, a versatile and adaptive type of commercial property.
Managing Director David Hansel answered questions he received from Lunch with Lucern webinars in the latest installment of the webinar series.
Data plays a critical role in optimizing investment properties and increasing returns. It provides valuable insights into the performance of an asset and helps identify areas for improvement.
Investors have sought opportunities to invest in real estate for decades because of the asset class’s reputation for generating passive income and long-term appreciation, producing performance uncorrelated to public equity markets, and having attributes that make it an inflation-resistant investment.
While there is a multitude of tactics to use when creating a strategy for multifamily property marketing, some strategies offer a higher ROI. For example, optimizing the property’s website for search engines, maintaining a strong social media presence and creating a sense of community through events and activities.
After assembling a business plan for a multifamily investment and completing the underwriting, it’s time to begin monitoring performance. Keeping a close eye on reporting for the asset will aid in measuring the health of the investment.
Multifamily real estate owners have the ability to increase cash flow and, ultimately, the NOI by increasing income or decreasing costs. There are many approaches an owner can take that will form each property’s unique business plan.
Investing in multifamily real estate requires careful consideration and thorough due diligence to ensure the investor understands the sponsor’s experience and track record, that the type of investment is right for their investment goals, and that the properties will be actively managed during the investment period.