Enter your email address for weekly access to top multifamily blogs!

Multifamily Blogs

This is some blog description about this site

Taking Care of Your Investors

Taking Care of Your Investors
A top-notch investor relations program is critical when foraying into multifamily investments. And when doing so, one might want to prioritize customer service as well as sound investment opportunities. Unfortunately, it's not completely unheard of for some multifamily firms to treat their investors as if they are fortunate to simply be along for the ride. They will provide investors with the required reporting, but not much else. When I think about what investor relations should look like, I think back to the pizza shop my father owned and ran while I was growing up. He never took a customer for granted. He realized they always had a choice in where to spend their money and so he made it a point to offer more than just a meal. He provided a warm, engaging customer service experience that left his patrons knowing they had been listened to and appreciated. This created a steady stream of return customers and positive word of mouth.  Obviously, today's investors want strong risk-adjusted returns. But they are after more than that, too. They want consistent and clear information from you. They want to know they can talk with someone at the company on short notice and that their voice will be heard. With that in mind, here are some general recommendations for good investor relations. Communicate clearly and often. Investors want and deserve more than the required reporting. Provide regular updates on the performance of the assets they're invested in. At Ashcroft Capital, for example, our investors receive......
Continue reading
489 Hits
1 Comment

Creating Value in Today's Value-Add Properties

Creating Value in Today's Value-Add Properties
It's the goal of many multifamily owners and investors: Buy an apartment community in need of upgrading, perform the needed renovations, boost rents accordingly and drive impressive returns. But just because apartment companies frequently undertake value-add projects, it doesn't mean success in these endeavors is easy. On the contrary, a value-add community that attracts residents and produces the targeted returns is the end product of an almost never-ending amount of diligent research and careful strategic planning.  Below are some of my general tips for success in the value-add arena. Dig into submarket data. This may seem obvious, but it's such a critical step that it merits placement here. A successful value-add project depends on a submarket that can support the rents and the investment returns you're seeking. Once you know what metro you're looking to invest in, thoroughly research the area's submarkets to pinpoint where your best investment opportunity may be. What are the submarkets where the population is increasing, employment opportunities are growing and rents are rising? Be prepared to go through all the data sources you need to make this vital, fundamental determination. Visit a property you're considering buying. Statistics, spreadsheets and databases are of course indispensable when evaluating a value-add opportunity. But don't ever underestimate the value of setting foot on a property and seeing it in person. As the great and wise Yogi Berra once said, "You can observe a lot by just watching."On a personal note, I was recently tempted – because of an extremely hectic s......
Continue reading
1196 Hits
0 Comments

Why Investing in Student Housing is Becoming More Popular

Last year Worcester Investments purchased its first student housing complex near the University of Kansas. Since this was a little different for us, we wasted no time getting down to the facts. While conducting market research on our student housing investment, we found a few interesting statistics that might make you consider expanding your own investment strategy.

Why More Students are Opting to Live Off-Campus than Ever Before

  • The National Multi-Housing Council (NMHC) stated that in 2010 school-owned housing facilities could only accommodate about 30% of the enrolled student population.
  • The cost of room and board at a public 4-year university is up 20% from five years ago; private 4-year universities charge 14% more than 5 years ago.
  • The average full-time undergraduate enrolled in a public four-year college receives enough grant aid to cover a significant portion of tuition and fees, but not to cover any other expenses. Let's break that down. If the average net price of tuition and fees is $3,120, that means the student is left with a net out-of-pocket cost of $9,500 for room and board.
  • According to the National Center for Education Statistics, national college enrollment is projected to increase by approximately 2.3 million by 2020.

Projections show increasing investors in the student housing rental market as educational costs continue to increase, so now may be a good time to consider evolving your investment portfolio. 

Continue reading
1754 Hits
0 Comments