Investing in Multifamily Apartments
Last week, we pulled the covers back a bit to reveal some of the key ingredients of the “Secret Sauce” we use here at the Barriskill Investment Group for the benefit of our investor community.
We introduced you to Evaluating Candidate Properties.
Each of these segments are posted on the company website for your reference, as they are published.
Presuming the multifamily apartment we investigated last week looked good and made sense, we will then:
Dive into the Details, so we can make an Offer.
When a candidate property passes our strict selection criteria, we’ll take a closer look.
We call this “Detail-diving.”
You see, it’s all about gaining the confidence we need for the potential purchase to be in the best interest of our participating investors, and the company itself.
We schedule, and then conduct an on-site visit. We evaluate the property first-hand. As we walk the property, we look for opportunities to increase revenue, decrease expenses and improve the appearance (esthetics) of the property.
Effectively increasing revenue and intelligently decreasing expenses are common-sense business practice. Functionally improving the property and its appearance demonstrates the goodwill we have for the tenants of the property who we will refer to as residents presuming we purchase the property. Positive good will can result from installing in-unit washer/dryer combos that eliminate the need for a common laundry room as well as introducing other amenities. It can also include defining and implementing a schedule of specific maintenance and improvement projects over time.
We’ll also take a drive around to affirm our initial investigations by viewing the minor and major shopping centers, local parks & recreation, schools, access to major highways, key employer buildings, hospitals and related healthcare facilities. We touched on this during last week’s session.
Presuming our detail-diving proves consistent with our initial evaluations, we will make an offer that includes an earnest money deposit to purchase the property.
We will then negotiate the final terms and conditions of the purchase with the seller through our respective commercial real estate Brokers.
Next week, we will introduce you to Step 3: Bringing in the Professionals.
For more information on how you might become a member of our private investor community so you can augment your retirement’s financial position, simply reply to this eMail or give us a call.
Our kind regards,
The Barriskill Investment Group