Luis Frias’ Post

Shifts in the home-buying market don’t just affect buyers—they create ripple effects for renters, developers, and multifamily investors too. Today, our team dives into how the residential home-buying market impacts multifamily investing. Read the full article: https://bit.ly/4gFEFag #essexthreetwelve #chicagocre

The 10 Biggest Mistakes New Multifamily Investors Make In multifamily real estate investing, avoiding common pitfalls can be the difference between success and failure. Here are ten of the most significant mistakes new investors often make: 1. Going it Alone: -Multifamily investing requires a team including brokers, lenders, attorneys, and mentors. Attempting to navigate the process solo can lead to costly errors. 2. Waiting to Raise Money: -Failing to secure financing or partners before finding a deal can result in missed opportunities. It's essential to have funds lined up in advance. 3. Moving Too Slow: -Overcautious investors may miss out on deals by hesitating to take action. Developing clear investment criteria and acting swiftly on opportunities is key. 4. Moving Too Fast: -Rushing through deals without conducting thorough due diligence can lead to costly mistakes. Successful investors strike a balance between speed and diligence. 5. Buying the Wrong Property: -Lack of clarity on investment goals can lead to purchasing unsuitable properties. Investors should define their criteria beforehand to avoid making hasty decisions. 6. Trying to Predict the Future: -Multifamily investments should focus on generating income rather than speculation on appreciation. Attempting to time the market can undermine long-term success. 7. Gambling on Cash Flow: -Purchasing properties with negative cash flow is risky, especially for inexperienced investors. Relying on future cash flow projections can lead to financial strain. 8. Ignoring the Law: -Failure to understand local landlord-tenant laws can result in legal issues. Investors must familiarize themselves with relevant regulations to avoid costly mistakes. 9. Hiring the Wrong Property Manager: -Choosing an incompetent property manager can lead to poor tenant relations and operational inefficiencies. Thoroughly vetting property managers is crucial for success. 10. Not Reading Leases: -Overlooking existing lease agreements can result in unexpected liabilities or restrictions. Investors should review all lease terms with legal or professional assistance to ensure clarity. While these mistakes can be detrimental, they are entirely avoidable with proper preparation, education, and the guidance of experienced professionals. Learning from the experiences of others can help new multifamily investors navigate the complexities of the market and achieve long-term success.

Surprise to no one: I’m a proponent of Multifamily Real Estate Investing. The benefits of MFRE speak for themselves: - Lower risk, compared with other real estate assets. - Better debt is available. - it can create a steady and reliable form of income. But it’s key to remember it’s “lower risk” ↳ And not “no risk.” It’s only fair to share some of those risks with you too: 1️⃣ You can become a target for lawsuits: With many people in and out of your property, there’s a greater chance of someone making you the target of a real or a frivolous legal claim. 2️⃣ Competition is high: Because Multifamily has so many benefits, it can attract a lot of new investment, leading to oversupply. And you can find your occupancy affected by new competition with more modern amenities. 3️⃣ Management Risk: You must have good management on site and you must be an active asset manager. Failure to perform these functions well will not only lower profits but could lead to the deterioration of the asset value over time. When it comes to risk, here’s a reality check: ALL investments carry risk. Investors must be willing to put in the work and also ride the cyclical ups and downs of the real estate industry. Multifamily RE investments are known for being more stable than other real estate ventures. But, there are risks involved and you need to know how to manage them. If you need help figuring out how to do that, get in touch.

I know what you’ve heard, but here’s the unpopular truth – FLIPPING HOMES is a waste of time and money.   I'm sure that ruffled some feathers, but it's time for some truth about single-family home investing.🏠  For far too long, SFRs have been in the spotlight as the best investment vehicle. But through my decade-plus of experience, I'm here to tell you that simply isn't true. Not when compared to multifamily syndications.💸  And I would know.    Hi I’m Michael Blank, and I specialize in helping everyday people buy their first apartment buildings.   And I lay it all out for you in my exclusive Apartments 101 Masterclass.  ✅ A proven, step-by-step system to financial freedom through buying multifamily real estate.   It’s a 4-module video series you can get 100% free. Zero cost, zero purchase, no strings attached.  Just pure value.  🤥 Now, most gurus still whitewash the challenges of scaling a profitable SFR portfolio. But I believe you deserve facts over false promises.  And the fact is: apartments provide higher returns, true passive income, and GENERATIONAL wealth if invested in properly.   💸I break down exactly WHY multifamily dominates in the Masterclass. I’ll show you why multifamily crushes SFHs in key metrics like cash flow, diversification, and ease of management.  If you’re looking for a REAL path to financial freedom through real estate, then take the first step by enrolling in my 100% free APT 101 masterclass today.🥇  Just click the link in bio to get started for FREE today.  apartments101.co/invest

I know what you’ve heard, but here’s the unpopular truth – FLIPPING HOMES is a waste of time and money.   I'm sure that ruffled some feathers, but it's time for some truth about single-family home investing.🏠  For far too long, SFRs have been in the spotlight as the best investment vehicle. But through my decade-plus of experience, I'm here to tell you that simply isn't true. Not when compared to multifamily syndications.💸  And I would know.    Hi I’m Michael Blank, and I specialize in helping everyday people buy their first apartment buildings.   And I lay it all out for you in my exclusive Apartments 101 Masterclass.  ✅ A proven, step-by-step system to financial freedom through buying multifamily real estate.   It’s a 4-module video series you can get 100% free. Zero cost, zero purchase, no strings attached.  Just pure value.  🤥 Now, most gurus still whitewash the challenges of scaling a profitable SFR portfolio. But I believe you deserve facts over false promises.  And the fact is: apartments provide higher returns, true passive income, and GENERATIONAL wealth if invested in properly.   💸I break down exactly WHY multifamily dominates in the Masterclass. I’ll show you why multifamily crushes SFHs in key metrics like cash flow, diversification, and ease of management.  If you’re looking for a REAL path to financial freedom through real estate, then take the first step by enrolling in my 100% free APT 101 masterclass today.🥇  Just click the link in bio to get started for FREE today.  apartments101.co/invest

I know what you’ve heard, but here’s the unpopular truth – FLIPPING HOMES is a waste of time and money.   I'm sure that ruffled some feathers, but it's time for some truth about single-family home investing.🏠  For far too long, SFRs have been in the spotlight as the best investment vehicle. But through my decade-plus of experience, I'm here to tell you that simply isn't true. Not when compared to multifamily syndications.💸  And I would know.  Hi I’m Michael Blank, and I specialize in helping everyday people buy their first apartment buildings.   And I lay it all out for you in my exclusive Apartments 101 Masterclass.  ✅ A proven, step-by-step system to financial freedom through buying multifamily real estate.   It’s a 4-module video series you can get 100% free. Zero cost, zero purchase, no strings attached.  Just pure value.  🤥 Now, most gurus still whitewash the challenges of scaling a profitable SFR portfolio. But I believe you deserve facts over false promises.  And the fact is: apartments provide higher returns, true passive income, and GENERATIONAL wealth if invested in properly.   💸I break down exactly WHY multifamily dominates in the Masterclass. I’ll show you why multifamily crushes SFHs in key metrics like cash flow, diversification, and ease of management.  If you’re looking for a REAL path to financial freedom through real estate, then take the first step by enrolling in my 100% free APT 101 masterclass today.🥇  Just click the link in bio to get started for FREE today.  apartments101.co/invest

I know what you’ve heard, but here’s the unpopular truth – FLIPPING HOMES is a waste of time and money.   I'm sure that ruffled some feathers, but it's time for some truth about single-family home investing.🏠  For far too long, SFRs have been in the spotlight as the best investment vehicle. But through my decade-plus of experience, I'm here to tell you that simply isn't true. Not when compared to multifamily syndications.💸  And I would know.    Hi I’m Michael Blank, and I specialize in helping everyday people buy their first apartment buildings.   And I lay it all out for you in my exclusive Apartments 101 Masterclass.  ✅ A proven, step-by-step system to financial freedom through buying multifamily real estate.   It’s a 4-module video series you can get 100% free. Zero cost, zero purchase, no strings attached.  Just pure value.  🤥 Now, most gurus still whitewash the challenges of scaling a profitable SFR portfolio. But I believe you deserve facts over false promises.  And the fact is: apartments provide higher returns, true passive income, and GENERATIONAL wealth if invested in properly.   💸I break down exactly WHY multifamily dominates in the Masterclass. I’ll show you why multifamily crushes SFHs in key metrics like cash flow, diversification, and ease of management.  If you’re looking for a REAL path to financial freedom through real estate, then take the first step by enrolling in my 100% free APT 101 masterclass today.🥇  Just click the link in bio to get started for FREE today.  apartments101.co/invest

Investing in multifamily real estate properties is more than just financial returns. It's about building communities and nurturing lives. I think today is a perfect day to shed light on this topic. ✅ Building relationships: When I first started, I never realized how much I'd come to value the relationships. Partners, Tenants, and fellow investors - they've all been a part of my journey, and it's these connections that make the process deeply rewarding. ✅ Creating value: We often talk about 'value-add' in a strictly financial sense. But think about it – isn't it more than just upgrading a unit? It's about creating a better living space for someone, making their life a little more comfortable, a little more enjoyable. There's an art in that, a satisfaction that money can't buy. ✅ Impacting lives: We're not just landlords or investors; we're providing homes, cultivating communities. We have the power to impact lives. And with that power comes the responsibility to create positive, safe, and nurturing spaces for our tenants. ….. At the end of the day, we are not just investing in properties; we're investing in people, communities, and ourselves. This journey has been about more than just passive income or wealth creation, it's been a heartfelt journey of personal growth and meaningful connections. What does multifamily investing mean to you? P.S. Eager to embark on your own investing journey? Send me a DM and let’s build wealth in harmony with our passions!

How seasoned investors structure big multifamily real estate deals. Do you know how to structure a Multifamily deal? If not, here are some examples for you. Apartment investing is so exciting to me and here is why. You can be so creative in how you structure the deal so everyone can win. When it comes to syndication you have the LP “Limited Partner”and GP “General Partner” equity split. Typically you will see a 70/30 split meaning the LP’s own 70% of the deal/profits and the GP’s own 30%. Now… Every deal is different so that can change. In fact for more seasoned investors that number can be reversed meaning the GP’s get 70% and the LP’s get 30%. You can also offer a pref “Preferred Return '' to the LP’s. This means that the LP’s will get a percentage of the cash flow each month “First” before any distributions and then the split happens “70/30”. The pref is basically loan interest that you only pay when you can! Unlike a loan, if the deal can't pay the "pref" at some point, it accrues and you can pay it later! Another option is to offer equity to one or more of the LP’s. That’s right you can customize it per deal and even customize it for different classes of LPs, depending on the deal. Depending on how you structure the deal, this means that at the refi when you pay off investors, sometimes LPs stay in the deal and continue collecting on a monthly and yearly basis. Or maybe they receive their pref and their initial capital back but are no longer part of the deal. You can also offer depreciation as well from the deal to those in the deal so they can write it off with their taxes. Sometimes the GP's don’t need the deprecation because we already have enough for the year. But for others, they may have earned too much and they need the depreciation. Depending on how you set up your deal, you can offer more depreciation to someone who might need it! You also have the “Waterfall”. The way a waterfall works is that after a certain period of time and amount of money the LP’s receive, the equity split can increase for the GP and decrease for the LP. Basically, if the GP team exceeds expectations, they can receive a "bonus"! There are so many awesome ways to structure the deal. In fact you can even combine the different structures mentioned above. There are a lot more than I have even mentioned in this post. If you liked this info comment “This is great” below. If you would like to invest some of your own capital and have us structure a deal that works great for you, comment “LP” below and let's have a conversation. #realestate #investing #passiveincome

Investing in multifamily properties, or properties with multiple units, can be a smart financial decision for many reasons. Here are some opportunities and benefits of investing in multifamily properties: ✨ Multiple streams of income: With multiple units, multifamily properties can generate multiple streams of income from rent payments. This helps diversify your investment portfolio and can provide a steady cash flow. ✨ Lower vacancy rates: With multiple units, there is a higher likelihood of having some units occupied even if others are vacant. This can help lower vacancy rates and ensure a more stable income stream. ✨ Economies of scale: Investing in a multifamily property means you can benefit from economies of scale. For example, you can buy in bulk when it comes to maintenance and repairs, and save on costs. ✨ Appreciation potential: Multifamily properties tend to appreciate in value over time, especially in areas with high demand for rental properties. ✨ Tax benefits: There are a number of tax benefits to owning a multifamily property, including deductions for mortgage interest, property taxes, and depreciation. ✨Professional management: Depending on the size of the property, you may be able to hire a professional property management company to handle day-to-day operations. This can help relieve the burden of managing the property yourself. ✨ Diversification: Investing in a multifamily property can diversify your investment portfolio, as it is not solely reliant on the performance of the stock market. If you're interested in investing in multifamily properties, feel free to reach out to us at connect@flowequitypartners.com so we can help assess your options and help you make an informed decision. By taking the time to do your research and seek expert advice, you can increase your chances of success and maximize the benefits of multifamily property investments.