Seasoned multi family owners with 200 plus

[Tony Asbille]

Been at this multi family thing 15 plus years. Have 400 plus units. I do not syndicate. Looking for other mature seasoned owners to discuss ideas, issues etc.  

[Rick P.]

@Tony Asbille

Well, without asking questions digging into the deal I must admit that in this situation I have generally preferred to put new debt on the property and reinvest. I currently sit at around 215 units or so spread throughout Chicagoland ranging from Class A new builds in Chicago to Class C rentals in NWI. Now, as this cycle ages more and more people are deciding to ring the bell and take some chips off the table.

Every situation is different but if you are comfortable with this property and are able to find other value add deals in your markets, why not keep going? On the other hand if you’re looking to build some cash reserves and wait for a pullback in the stock market or other asset classes, you can do that as well. You have no bad choices. Enviable position to be in.

One thing I have been thinking about and spreading to those in my network the past 18 to 24 months is that I believe we have moved past the era of absolute returns and are in a period that will be characterized by relative returns. No longer is it possible to throw a dart at the board and get double digit returns a year in any asset class you choose. It is my belief that multi family is in the best position to weather the coming storm. And I particularly believe this for small and midsize multi family which provide going in returns well above those one will find on a 100+ unit institutional apartment complex or the SFH down the block that every Johnny come lately wants to buy because everyone he knows owns a rental home. My two cents anyway.

-RP