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
550 Hits
1 Comment

Why buying cheap rental units will turn you into a slumlord (advice for new investors)

(title is slightly exaggerated for effect) I see a lot of new/prospective landlords on this subreddit, and also a lot of established/existing agents and investors, and sometimes there is a disconnect between what people don't know to ask, so to speak. So a couple of lessons from someone in-between (specifically, a small-time landlord who hasn't quit his day job yet). Take it for what it's worth... The easiest way to get started as a landlord/investor, by far, is make your first home purchase be an investment home, such as a small multi-family. There are a million books, guides, web-forums on the details, but your first purchase is usually the easiest one to get favorable financing, and, for a bunch of reasons, it is much easier to build on a small portfolio of income-generating or flippable properties than to leverage your primary residence. For this reason and others, a lot of new landlords are starting with cheap "starter" rental units. Which is fine, in fact it might be the best way for people with little cash to get on a path to being "rich", or at least a member of the investor-class. But here is a thing to be aware of (and it's neither a good thing nor a bad thing, just a thing): Cheap rental units have a tendency to lock you into cheap rental units. Let me explain: Let's say you buy a 4-unit apartment house in a marginal neighborhood for, say, $100,000 (all examples will assume adequate state of......
Continue reading
7495 Hits
1 Comment