As a result of the Great Recession, the multifamily housing market has been rising in demand. Its financial downturn has had a large impact across all generations, driving millennials to rent and baby boomers to downsize heading into retirement. According to a recent Forbes article the multifamily market comprises of 25%-30% of all commercial real estate. This figure is quickly increasing with apartments, condominiums, student and senior housing being rented by many consumers. For over three years now, esteemed multifamily investment firm Ashcroft Capital has successfully infiltrated the multifamily market by identifying strong investment opportunities while overseeing and constructing solid business plans for each asset.
With Ashcroft Capital’s goal in mind to reposition properties through operational efficiencies, Ashcroft’s team has gained considerable insight on what to expect when investing in multifamily properties. Whether they’re making moderate or extensive renovations to achieve this objective, Ashcroft Capital, along with its founder Frank Roessler, ensure investors deliver with careful due diligence when covering all aspects such as deal sourcing, acquisitions, financial modeling, debt structuring and asset management.
For tips on investing in multifamily properties, Roessler recommends choosing the right team of professionals to help. Experts from Ashcroft Capital’s firm can help you determine the more crucial aspects that require an overview. Roessler’s experience overseeing the underwriting and acquisition of over $250 million worth of multifamily assets, in addition to spearheading the asset management of a portfolio valued at approximately $500M assets, has led him to profit expeditiously in his more recent acquisitions. Investing in a multifamily property without any well-rounded experience is risky – you want to find a firm that covers all aspects as opposed to hiring a general inspector. Firms like Ashcroft Capital understands the importance of delving into each component of the building. This includes informing you as an investor on the communities’ local practices, customs, and financial cash flow.
First-time investors mistakenly value a multifamily property at its price per square foot. Roessler’s firm debunks this common misconception, informing clients that properties are valued at their generated income and return on investment. Roessler advises to assess your investment for its potential – not for what it is currently selling at. The physical and financial aspects of the building will have a significant impact on its value. Consider the following: an outdated unit, an unreliable landlord, new management… all of these factors should be taken into account.
There is a lot to take on when investing in multifamily buildings. While the demand continues to thrive, investors are encouraged to be mindful of the task at hand. Investing in multifamily properties means increased responsibility, liability and capital flexibility to meet growing demands. Use a team of professionals, such as Ashcroft Capital, to ensure you’re using the best methods for investing.
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