​Why did I choose Multifamily?

Jack of all Trades master of None.

I must have heard that phrase 100 plus times while in the Navy. As MH-60S Helicopter pilot we had more missions we were responsible for than we could count. The truth is that we had to provide the capability, not the actual execution of those missions for the ships we were embarked on. To young pilots that often meant lots of frustration preparing for and training for missions that we would likely never be called on to conduct. It was during that time that I began to realize that specialization had its advantages. By focusing on one thing we could produce higher and more repeatable results. Unfortunately, I had started real estate investing with the same jack of all trades master of none mentality that frustrated me at work.

Almost all forms of real estate investment can be successful. I have met people who only rent ugly small houses and those who only flip expensive homes. From industrial warehouses, to commercial office buildings, and even the person I heard who invests in cemetery plots, there can be success in nearly every niche. When I looked around I saw the most successful individuals focused on one area, rather than across many different types of niches. Sure, once and a while someone is able to find a great deal outside of what they focus on, but generally I began to see that those who focused on one area, one property type, or one strategy were much more successful long term. So, I had a decision to make, what do I focus on?

Clearly from the title of this post I chose syndicating larger multifamily properties. For me multifamily made the most sense. I wanted to run a business, I wanted to work with professionals, and I wanted to be able to have staff work with tenants (I knew what I wasnt good at). By choosing multifamily I also lost out on benefits found in other real estate investment niches. I needed credit, I needed money and I needed time. I wasn’t likely to do many no money down deals, I will not buy hundreds of deals a year, and I will be paying market price on most of my properties. However, for me the benefits outweighed the costs.

When purchasing multifamily I like the ability to evaluate the deal based on cash flow and real numbers. Though we often use proformas, the numbers guide our pricing and valuations. I like working with a team. From the broker, to co-sponsors, investors, the property management company, and on-site staff, getting everyone to work together is a success in itself. When running a multifamily deal, I enjoy getting everyone to work together to get to closing, then again to run the property correctly. I like talking to investors, raising money, and helping my friends and investors make more money than they could anywhere else.

So to answer the question Why Multifamily? Because I had to pick and it fit me.