Multifamily Investor Nation Summit Takeaways

I attended my first real estate conference of the year on January 17-19 from the comfort of my own home! I attended the online Multifamily Investor Summit hosted by Dan Handford. Below are my top 3 takeaways from the conference:

1. Belief System Matter
   • Trevor McGregor discussed how important having a growth mindset is to your investing career. Instead of asking yourself the following:
     • Why aren’t there any good deals anymore?
     • Aren’t prices too high to invest?
     • Isn’t the real estate crash coming?
   • You should be telling yourself:
     • There is always a good deal to be found!
     • Prices may be high, but there is always a good deal that can make money!
     • Investing in an apartment complex that has long-term debt, positive cash flow, and a value-add component, will allow us to have a successful deal that can overcome the housing market crash.
   • These are the differences between having a limited belief system and a growth belief system. This seminar was impactful because I doubted my myself, my network, and the market before committing to multifamily investing. Trevor helped me realize I can and I will execute my first apartment syndication this year. I look forward to working with Trevor in the future with his coaching.
2. Treat People’s Money With Your Life
   • Brian Burke was telling his story about his start in multifamily investing and he said that his first fund started with his gun carrying police friends. He said, “My life absolutely depended upon my ability to protect their capital and not lose their money.” He wanted to protect his investors’ money, and so do I. I want to make all investors aware that I promise to treat their money like Brian does. I promise to:
     • Understand YOUR goals and make sure they align with the investment's goal.
     • Review all underwriting to make sure it is conservative.
     • Have open and clear lines of communication so that you feel assured that your investment is in good hands.
     • Leverage all my resources to make sure the investment and business plan goes as planned.
3. Class B-C Multifamily Investments Still Have Room for Growth
   • Neal Bawa presented on the single-family and multifamily markets. He presented the state of multifamily investments going into 2019 with impressive graphs and charts. Here are the top 3 takeaways I had from Neal’s presentation:
     • That 97% of new construction builds are Class A properties because construction inflation is the highest it has been since 1992. This means that there is a minimal number Class B and no Class C apartments being built. This results in a capped supply for the investments we are looking to invest in.
     • Class B and C apartment properties have the lowest vacancy rates amongst all the classes. Class C properties have a vacancy rate of 3.9% and Class B properties have a vacancy of 4.7%. This means that these properties are still in high demand for renters.
     • Nationally Class B and C properties have seen a rent growth of nearly 3% since 2017. Neal said that in strong metros, such as Atlanta, he has seen the rent increase for Class B and C apartments been as high as 6% month-over-month.
   • Class B and C apartments continue to be a great investment because they have a capped supply, increasing demand, and increased rent growth.

The Multifamily Investor Nation Summit helped solidify my belief system, create my promise to my investors, and solidified my belief that Class B and C properties are a great investment in 2019.

Thank you to Dan and all the speakers for providing valuable information and having a great system to host everyone!

If you have any questions about apartments or multifamily investing feel free to message me at anytime and I would be happy to help.

Thanks again, and keep leveling up!

Mike