Are you planning on getting started with investing in multifamily real estate? If so, you’re making the right choice but, before you invest in your first property, you need to decide if you’re willing to invest in your first property yourself, or if you should invest in a property with a real estate firm like Trier Capital.
There’s no doubt that even despite the recent Coronavirus Pandemic, multifamily real estate continues to be one of the most ideal investment opportunities out there today, especially since historically low mortgage interest rates make right now an ideal time for a Real Estate Investors to get in and start investing in their first properties.
If you’re not sure if you should invest in multifamily real estate on your own, or with a real estate firm, this article will provide you with everything that you need to know about investing in multifamily properties alone or with a real estate firm.
What to Expect from Investing in Multifamily Properties Alone?
The first thing to realize when you invest in multifamily properties alone is that it’s all up to you to get started with investing in your first property. This means that you have to first identify the type of multi-family property that you want to invest in then choose the locations where you would like to invest.
Once you find the right property though, this is where the hard work actually begins because the next thing that you have to do is to research the property that you’re thinking buying and also doing your “due diligence”.
Due diligence means that you are going to take the time to research the location, history of the building, rent roll, and financials for the property to confirm that everything that the current owner has told you about matches up to the information that you found during research.
Besides doing your due diligence on the property, you also have to learn more about where the building is located including if it’s close to public transportation, shops, stores, schools, jobs, and also things to do in the area.
Some of the questions that you may want to consider asking when evaluating a multifamily property include:
Why is the current owner wanting to sell the multifamily property? This will also help you to know if the area is in decline, and the tenants are leaving, or if the owner is motivated to sell because they are getting older and want to be free of the responsibility of owning the property.
Can the rents be increased? Although you won’t want to consider raising the rents if you were to purchase a multifamily property now (due to Coronavirus), the reality is that this should be your goal in the near future for any property that you purchase.
After determining that you found a multi-family property that you want to invest in, the next step is to pull the trigger and invest but, once you’ve purchased the property, the work isn’t done yet, it’s just beginning.
Once you officially become the owner of the multifamily property, the next step is to decide if you want to manage that property yourself or if you want to hire a professional property management company?
Although many multifamily Real Estate Investors start out wanting to manage their multi-family properties themselves, the reality is that they soon realize that this is not an effective strategy.
Most investors come to the realization quickly that if they want to continue scaling up their multi-family investing business, hiring a property management company in the city where the multifamily property that they own is located is the only way that they can properly scale up their portfolio of investment properties.
Investors can without a doubt purchase multi-family properties themselves but purchasing and managing multiple multifamily properties requires a lot of work.
Thankfully, there is a better solution available; smart investors, who want to save the time, money and hassle of investing in multifamily properties themselves should consider investing in multi-family properties with a real estate firm like Trier Capital.
Why Invest with A Real Estate Firm?
At Trier Capital, as investors, we know how difficult it can be for some people to work with a real estate investment firm because they are used to doing everything themselves.
The reality though is that any investor who wants to grow an extensive portfolio of multifamily investment properties must be willing to hand off the duties involved that come with growing a portfolio of investment property to experts that specialize in those fields, instead of the investor wanting to do everything themselves.
Here are the benefits that investors will receive when they work with a real estate investment firm
Asset Manager – The first benefit Real Estate Investors will receive when they work with a real estate investment firm is the benefit of having a full-time asset manager working on their behalf.
The asset manager is responsible for all aspects of asset management including sourcing properties, due diligence, placing bids, negotiation and ultimately selling the property.
Asset Management alone can take a lot of investors’ time but the good news is that with a third-party asset manager working on their behalf, an investor can have confidence that the asset manager will be doing everything they can to invest in the most profitable real estate Investments for the investor.
The Ability to Scale Up Fast – Another reason to work with a real estate investment firm is that this offers an investor the ability to scale up their portfolio of investment properties quicker than they would if they were to invest in multiple multifamily properties themselves.
A real estate investment firm like Trier Capital provides Real Estate Investors with the ability to quickly and efficiently scale up their real estate Investments because the investor can rely upon our team of experts who specialize in sourcing, acquiring and managing multi-family properties so that the investor doesn’t have to do all of the work themselves.
Property Management – As I stated earlier in the article, one of the biggest reasons why many investors who try to build a portfolio of multifamily properties themselves often fail is because of Property Management.
Most investors find themselves unable to adequately manage a portfolio out of multiple multifamily properties because, if the investor doesn’t have experience with property management, managing a multi-family property can be another job in Itself.
When an investor invests in multifamily real estate with a real estate investment firm, the good news is that you don’t have to worry about any aspect of property management because they can rely upon the asset manager to oversee their portfolio of multi-family investment properties so that they don’t have to do any of the “heavy lifting” themselves.
Contact Trier Capital
Are you ready to invest in your first multifamily property? If so, learn more about the services that Trier Capital can offer you by contacting us at (630) 229-2383 or click here to connect with us online.