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Will Multifamily Real Estate Housing Crash in 2022?


I have some very strong predictions about whether there will be a multifamily real estate housing crash in 2022.

Will there be a multifamily real estate housing crash in 2022? Hell no! Here are the reasons:

  • We need to build 325,000 new apartment homes each year on average, which we haven't done since 1989. We only did 289k in 2020, which was an extremely active year by any standards.
  • We need to build over 4 million apartment homes by 2030. And another 10-12 million apartments need renovation during that time. We aren't even close to being on track.
  • Immigration is predicted to account for half of all new U.S. population growth through 2030 and immigrants mostly rent.
  • For millennials 22-37 most common form of living is renting.
  • Seniors are choosing the convenience of apartment living over ownership.
  • Renters in the U.S. are near 39 million people, which is about 1 in 8!
  • Even if home prices flatten or go down in 2022, which is highly doubtful, they still won’t go down anywhere near enough to then shift renters to buyers.

Hear more in the video: 

 

 

 

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Showing Gratitude to Your Team - Can They SEE It?

Showing Gratitude to Your Team Can They SEE Your Thankfulness? Today we will do the obligatory Thanksgiving gratitude post. After all, its that time of year when we are practically forced to consider our blessings. So along with the ocean of other articles extolling the importance of being thankful, allow me to present one more. But I will add the Rick Ellis spin. 😇  Who Do You Spend the Most Time With? If you don’t count sleep time, we spend as much time or more with our work team than our family and home team. Your coworker may see you more than their spouse!  That makes you a very significant person in their life. Its a lot to ask of your team, isn’t it? To spend at least a third of their life working for or with you?  Its one thing to be thankful for your hardworking and loyal onsite team. But how do you show gratitude? Can your team see, feel, and experience your gratitude for them? Making Your "Thank You’s” Mean Something There is nothing wrong with a sincere “attaboy/girl” or well-crafted thank you note. These are nice gestures but may I suggest something more memorable? Consider these tips to show your team how much you really appreciate them. Greet every team member by name...and with warmth and sincerity. This will be difficult at first but the more you do it, the better you will get. Keep it up and your team will begin to respond positively and model your behavior. Learn and remember the names of their family members and significant others. L......
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Selecting Rental Comps & Rent In Multifamily Real Estate


Determining rental comps to use when valuating multifamily real estate is highly important. Especially when you're looking to add value to the asset after a renovation. Part of the process involves some sort of online membership-based software that can query all the assets in a market. Some of it is a gut feeling about whether a comp matches and some of it is an investor's knowledge of the market. This is how I select rental comps and post renovation rents when underwriting multifamily real estate assets. As a broker listing multifamily real estate assets for sale, it is imperative to select the right rent comps to prove achievable rents to the buyers. Buyers aren't stupid. They are going to recognize if a broker is choosing assets way better than the subject in order to sell the idea of higher rents. I use Costar to narrow down the initial field of assets based on the unit count, age, unit mix, and location in the market. Any similar program to Costar can do the same trick. After looking at the initial list of assets from the above search on Costar, I then use my market knowledge and gut feel to eliminate any remaining assets I know are not a close match. For the remaining comps, I typically put them in an excel spreadsheet and rank each one as 1, 2, and 3 with 1 being the closest matched asset to the subject. I place more weight on the 1s and the least weight on......
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If you won the lottery tomorrow…what would you miss most and least about your job?

If you won the lottery tomorrow…what would you miss most and least about your job?
Recently I asked the members of a multifamily Facebook group this question: “If you won the lottery tomorrow and decided not to work anymore, what would you miss MOST and LEAST about your current job?” Nearly 100 people weighed in. Here are some of the trends in the responses. What would people miss MOST about their current jobs? Far and away the most commonly cited thing was their coworkers. Amanda S. said it well: “What I would miss most: my coworkers…morning coffee talk/adult interaction.” And Olivia T. loves her co-workers so much, she’s going to take them with her on her lottery-retirement. She said this: “I would miss my team the most…but if I’m honest, they’d probably be on the beach next to me!” Many others said they would miss positive interactions with residents and customers. Said Theresa T, “I would miss the ability to help residents and prospects. Yes, even the irritable ones. I consider them my personal challenge to turning them into happy campers.” Said Christina H., who left the industry 18 months ago, “I miss the feeling that I did my job well, and that I understood…how to make people truly happy with the service I provided.” Hilariously, a great number of commenters said what they’d miss most about their current job was the residents’ dogs! “I would miss the residents’ dogs,” said April R. Chimed in Apryle M, “10/10 the dogs. All of them!” What did people say they would miss LEAST about their current jobs? Again, there were some common themes. Lots of folks ......
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Your Website is No Longer Your Most Strategic Marketing Asset.

Welcome to The Local Search Economy.  Google My Business (GMB) is upstaging your community website. This spells trouble for a few reasons:  You’ve invested (and continue to invest) time and money in your website. Users form first impressions based on your GMB profile, then decide whether to visit your website. You depend on your website to generate leads and leases.  So, what’s going on?  Things change rapidly in a digital-first world. Google introduced GMB in 2014 and since then has steadily evolved the platform and its localized search algorithm. GMB is now a critical part of local search for any business with a physical location and an ideal solution for apartment marketers.  Consider the following six points: GMB is Free. Setting up a GMB profile for a physical location is free and helps ensure your communities can be found on Google search and Google maps while prospects are actively searching.  The Rise of Zero-Click. 65% of Google searches end without a click to another website, with users' queries resolving directly from the search results page. Prospects can call, get directions, view your offers and other info, right from your GMB profile. Catch prospects where they are and provide them with what they need to choose your community.   Google is (Still) Eating The World. Google dominates the global search engine market share, handling more than 92% of all search queries globally. And Google's local search algorithm favors signals from GMB profiles that are complete and consistently updated. Optimizing your GMB profile is you......
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How To Build A Top Notch Seller Reputation In Multifamily


Sellers, you want to develop a reputation with every buyer in the marketplace that buying from you is first class. You want them to talk about you in a good way at dinner that night with their spouse. There are a number of things that go into developing an awesome reputation as a seller. A very simple one that’s easy to do and goes a long way is how you care for your property during the marketing and contract period. Are you the seller that spends as little money as humanly possible during this time because you feel like you’re throwing money away at something you won’t own in 90 days or are you the seller that understands the power of going above and beyond to care for an asset because the reputational benefits will spread throughout the multifamily world and handsomely reward you long term? Remember, buyers of your assets will be sellers of other assets in the future. If they remember you to be the seller that cut corners and did just enough, they will be far less likely to select you as a winning bidder on their next sale. And the brokers involved in your transactions will be less likely to recommend you as a buyer. There are some easy things I’ve recognized sellers can do to build a killer reputation during the marketing and contract period. The cost of making repairs, replacements, and beautification during this time is so minimal as a percentage of the deal but the pay......
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Fair Housing and Internal Employee Communication

Fair Housing and Internal Employee Communication
Internal employee communication is essential to keep an office running smoothly and fair housing compliant. Without proper internal communication, staff can find themselves struggling to know what to do. Consider the following scenarios. Maintenance Work Request We all know that fair housing best practice is to complete maintenance requests in the order they were received except in the case of emergencies. But did you know that what can be considered an emergency can significantly vary from property to property? As a result, a new hire can quickly become confused as to how to properly handle maintenance work requests if the property’s policy isn’t clearly communicated. This could result in work orders being handled out of order and open the property up to a discrimination or fair housing complaint.   Internal communication of policies and procedures is an absolute must, especially when it comes to new hires. Supervision is also a key component; making sure that if a staff member has a question, there is someone there to help. Along with this, every staff member should have access to adequate documentation as well as regular training. Keeping these lines of internal communication available, aids in workplace compliance.  Callback Policies Callback policies are another place where fair housing compliance can become an issue if there isn’t proper internal communication. Today’s properties face the challenge of sorting through multiple contact points, and phone, email, text, and web-based communication are all part of most properties’ daily communications.    Just as with maintenance requests, fair housing best prac......
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How To Hire The Right Lawyer In Multifamily Real Estate


Hiring the right lawyer in multifamily real estate can make or break deals and can increase or decrease your future deal flow from brokers and other investors. ELITE INVESTORS ALSO CHOOSE LAWYERS WHO SHARE THEIR BELIEFS ABOUT DEAL MAKING AND EMPATHY. This is huge! Every Elite Investor I know is represented by a lawyer with whom I thoroughly enjoy working. They show empathy in transactions, and they truly thrive on doing deals rather than suspiciously searching for ways the other party is trying to get the upper hand. Unfortunately, the opposite is also true. Some investors choose attorneys who thrive on redlining as many words as they can so their client thinks they are really good. When they find a clause they don’t like, instead of thinking about solutions, they build up the issue to be more important than it is. Attorneys are used to seeing redlining, so it is no big deal to them. But when investors open a document like that, they are completely deflated, angry, and aggravated. Even if most of the redlines are grammatical, it still sours the review process. Elite Attorneys have an encouraging tone that a deal can get done; they give realistic probabilities on issues, never raise their voice, and never start building up the other side as villains. These attorneys know that the more deals they can help their clients do, while still keeping them safe, the more those clients will use them and help them grow their own law practice. Also, Elite A......
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Top 5 Reasons Real Estate Investors Hire Real Estate Agents


Don't let the boring title of this video fool you. There are 5 main reasons the most elite multifamily investors in the world hire a real estate agent to sell their assets and you're not gonna want to miss # 5 on the list.

As an overall answer to the question "Why hire a real estate agent to sell your assets," they make you more money. That's a fact. Read on. Yes, real estate investors could just get an appraisal done and stick the listing on LoopNet, Crexi, apartmentbuildings.com, or Ten-X. And yes it will probably sell.

A real estate investor could even get a bunch of real estate agent BOVs (Broker Opinion of Value) to ensure they list their own property for the right price, not hire any real estate agent, and sell themselves. But make no mistake only real estate agents can create an environment that earns a seller the most the market will pay.

Here's reason #1:  No investor can ever create the vast database a real estate agent can because it isn’t natural for real estate investors to call dozens of other real estate investors a week and build rapport. An investor’s database of buyers will pale in comparison to a real estate agent's. The more real estate investors known the greater the chance of bringing a higher offer.

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Putting our money where our mouth is – The 4 Star Challenge ⭐⭐⭐⭐

Putting our money where our mouth is – The 4 Star Challenge ⭐⭐⭐⭐

There are two critical keys to effective training: 1) Great content, and 2) High engagement. If either of these pieces are missing, then team members simply won’t embrace their training. Unfortunately, many people have been burned by boring training that causes pushback from the on-site teams, so we have decided to be BOLD! We are putting our money where our mouth is and guaranteeing that if your teams don’t rate our series at least 4 out of 5 stars over the course of one quarter, we will refund you every penny!

We bring in the top speakers in multifamily, not just from a content perspective, but who are also dynamic and motivating! And now, you don’t have to take our word for it. If we don’t meet your team’s expectations for quality training, then that first quarter is FREE!*  Take a look at the schedule and consider this: If your teams are guaranteed to LOVE this series, or it’s free, will it benefit your company to bring in the top trainers, speakers, and mentors in multifamily?

See the full Webinar Wednesdays Lineup HERE. Then, contact us to get more information on how the program works! 

We can't wait to see you!


Click here to see the terms and conditions of this program.

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